Aadhaar is now a key document and ‘ must ‘ because of its growing importance for financial transactions and the social security schemes of the government. Aadhaar must be connected to products and services such as bank accounts, life insurance policies and mobile connections. But is it really helpful? Check what are the benefits of Aadhaar Card linking to Bank accounts below.
The Government has made many important services related to Aadhaar mandatory for customers. You are also frequently reminded to link Aadhaar card with all your bank accounts, mutual fund, and mobile number. The Reserve Bank of India recently also officially announced that the link of bank accounts to Aadhaar is compulsory.
Also, the Insurance Regulatory and Development Authority of India (IRDAI) had confirmed that it is compulsory to link Aadhaar number to all insurance policies under the Prevention of Money-laundering Second Amendment Rules, 2017.
According to the Unique Identification Authority of India (UIDAI), government schemes require Aadhaar to help eliminate duplicate fakes and ensure to have accurate data so that direct benefit initiatives can be carried out. Aadhaar eliminates the costs of tracking people and provides the government with greater transparency when enforcing their schemes.
Read More – How to Apply and Download New Aadhaar Card?
Therefore, government benefits, including discounts for LPG cylinders, are credited directly to the account by linking the banking account with Aadhaar. UIDAI says that verification of bank accounts with Aadhaar provides an additional security layer.
Aadhar Card Number is a 12-digit UID issued by UIDAI to every resident of India with many benefits. The account holder must provide consent to select his/her Aadhaar card number into his or her bank account. Aadhaar and account can be linked by new and existing customers alike.
Top Benefits to Know with Aadhaar Seeding:
The most important advantage of Aadhaar card linking is that payments received from social security programs and other incentives are obtained by various schemes operated by the Indian government. Know the schemes here:
- Direct Benefits Transfer (DBT): After the LPG customer number is paired, the LPG cylinder subsidy balance is credited directly to the associated Aadhaar bank account. The variance between the market price and the subsidized cost is the value of the subsidy. You can also apply for LPG subsidies that will be of monetary benefit to the country.
- Commodity Goods/Products: Subsidies are also credited to the linked account for different goods such as kerosene, cotton, corn, pulse and many other items whose costs are subsidized.
- Mahatma Gandhi National Rural Employment Guarantee (MNREGA): Wages will also be credited directly to the employees’ bank account under this scheme.
- Tribal Welfare Schemes: The program will also encourage quality service delivery and expand the coverage of government welfare programs in remote tribal service areas. The Government financial incentive will be credited to the linked bank account.
- Scholarship: Students who receive a scholarship from the government can get this money only if the bank account which is on the name of the student is linked with their Aadhaar number. It is compulsory for only selected Indian state students.
- Country Wide Access: Linked accounts can be operated from anywhere in India and, in addition, users can log in by ATMs, and others.