Govt. Order for Bank Account-Aadhaar Linking: What if you Don’t Comply?

By now, almost every Indian citizen has received at least one SMS carrying a notification that says that they are required to link their bank account with their Aadhaar number by December 31, 2017.

If you received it as well but decided to ignore it, then buckle up because the government is taking it very seriously and you may have to face repercussions if you fail to comply with the order.


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Under the amendment of The Prevention of Money Laundering (Maintenance of Records) Rules, 2005, dated June 1, 2017, the government has ordered the following:

  1. All the existing bank accounts must be linked with the Aadhaar numbers of their respective holders by December 31, 2017.
  2. All the new bank accounts must be linked with the Aadhaar at the time of opening the account itself or within the next six months of opening.
  3. All bank accounts found non-compliant with the government’s order will be rendered non-operational. However, you have until December 31, 2017, to conform to the order and no bank has the right to deactivate your account or take any action regarding the order before the deadline.

What if you don’t follow the order?

As mentioned above, failing to link your bank account with Aadhaar can force your bank to block it. So, you won’t be able to withdraw funds from the bank account or even transfer the same to other accounts.  However, you can re-activate your account by submitting the required documents to the bank later along with the Aadhaar. Either way, you can’t use your account unless you provide your Aadhaar.

Exemptions Given to Small Accounts

Small bank accounts have been exempted from the government’s order and can be opened without the submission of Aadhaar. These accounts are the ones for which the:

  • Aggregate of all the credits is not above Rs. 1 lakh in a fiscal year
  • Aggregate of all the transfers and withdrawals does not exceed Rs. 10,000 per month
  • Balance at any point is not above Rs. 50,000

So, if your bank account satisfies these conditions, you don’t have to worry about the directive.