TIL Desk/Business/New Delhi/ The Government has made it mandatory for banks and financial institutions to check the original identification documents of individuals dealing in cash above the prescribed threshold. As per a report, individuals carrying out transactions above Rs 50, 000 will have to furnish their original identity proofs to the banks.
For this, The Department of Revenue in the Finance Ministry has issued a gazette notification making an amendment to the Prevention of Money-laundering (Maintenance of Records) Rules. Under this order, it will be necessary for all financial institutions to match the official identity card and their photocopy.
The new rule now requires the reporting entity to compare “the copy of officially valid (identification) document so produced by the client with the original and recording the same on the copy”. The Aadhaar number 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.
