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Aadhaar authentication may soon be mandatory for large cash transactions


Date: 23-07-2019
Subject: Aadhaar authentication may soon be mandatory for large cash transactions
High value cash transactions may soon require Aadhaar approval, reports The Times of India. The norm will also apply to foreign exchange transactions and property registration above a specified value, the report said.

“We want to work out the limit in a way that only people making transactions above a certain value are tracked without causing hardship in case of smaller transactions,” a source told the newspaper. The verification might be done via electronic KYC or a one-time password (OTP), the report added.

The government is still working on the limit. But till then, mandatory authentication could start at an annual deposit or withdrawal of Rs 20-25 lakh.

Moneycontrol could not independently verify the story.

The proposal is an attempt to keep a check on cash flow and curb black money.

The government’s move was prompted by a number of depositors providing fake permanent account numbers (PANs), the report said. “It's not foolproof but will help reduce fraud,” the article quotes a source as saying.

The rules might be eased for small business owners that deal with large amounts of cash, such as kirana stores and dairies, the report said. Such businesses might not be required to authenticate each cash transaction.

The government has proposed to make Aadhaar and PAN interchangeable from September 1. The plan was announced by Finance Minister Nirmala Sitharaman during her Budget speech.

Source: moneycontrol.com