Original IDs must for bank transactions over Rs 50,000
New Delhi: To check use of forged copies during bank transactions, the Government has made it mandatory for banks and financial institutions to check original identification documents of individuals dealing in cash above Rs 50,000.
The Revenue Department in the Finance Ministry has issued a gazette notification making an amendment to the Prevention of Money-laundering (Maintenance of Records) Rules.
Under the new rule, banks will compare the copy of officially valid (identification) document produced by the client with the original ones and record the same on the copy.
The Prevention of Money Laundering Act (PMLA) and its rules impose an obligation on reporting entities like banks, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information to Financial Intelligence Unit of India (FIU-IND).
As per Rule 9, every reporting entity shall at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship.
Biometric identification number Aadhaar and other official documents are required to be obtained by the reporting entities from anyone opening a bank account as well as for any financial transaction of Rs 50,000 and above.