As per the new guidelines issued by the government, bank accounts that are not linked with Aadhaar will shut down and no new account can be opened without Aadhaar after December 31, 2017.
This step is taken by the government in order to fight back against money laundering, black money and funding of terrorism.
The amendment makes it mandatory for individual, companies and partnership firms to link Aadhaar along with PAN or Form 60 for all financial tractions of 50,000 and above with effect from June 1,2017.
Frozen accounts can be easily reactivated by linking to Aadhaar, the money will be safe but the bank accounts will not be operational. But, after linking it to Aadhaar the customer can operate his/her accounts easily.
It is estimated that about 70 crore saving accounts have been linked to Aadhaar.The central government is trying to maximise the use of Aadhaar to stop embezzlement of money and to ensure benefits reach to their targets.
The Supreme Court is hearing several petitions against making Aadhaar mandatory to avail public services as it violates privacy and is vulnerable to data breaches and will let government spy on people.
The government has already made the use of Aadhaar mandatory for filing Income tax returns as well.
An Aadhaar card contains 12-digits identification number, which is issued to individual after their biometric retina scan and fingerprints.