The central government has introduced some new rules regarding money transactions in banks or post offices. Under the new rules, account holders are required to provide PAN and Aadhaar card numbers in case of deposit or withdrawal of Rs 20 lakh or more in a bank or post office in a financial year. The Central Board of Direct Taxes (CBDT) said in its notification that it would be mandatory for everyone to provide PAN number or biometric verification of Aadhaar for large scale transactions with banks in a financial year. In addition, Aadhaar, PAN will also be required for opening a current account or cash credit account in any bank or post office.
This decision has made it mandatory for banks, post offices or co-operative societies to disclose accounts with transactions exceeding Rs. 20 lakhs in a financial year, which will lead to greater transparency in financial transactions.
It will also help the government to keep an eye on the cash flows in the financial system as well as regularize the process of suspicious cash deposits and withdrawals.