Right after the imposition of modified RBI rules post demonetization, Govt. of India now took another crackdown on black money hoarders, GOI directed all banks to furnish PAN card details of all bank holders by February 28th, 2017. The notification further included that the account holders must link their accounts to Form 60 if PAN is not available.
Right after the two months of demonetization government took this action as another trial on curbing black money. However, there was never been such an exercise in history.
“The persons who are having bank accounts but have not submitted PAN or Form No 60 are advised to submit the PAN or Form No 60 to the bank by February 28, 2017,” it read.
The announcement comes close on the heels on completion of two months of demonetization.
A statement from the Finance Ministry said: “Income-tax Rules have been amended to provide that bank shall obtain and link PAN or Form No. 60 (where PAN is not available) in all existing bank accounts (other than BSBDA) by February 28, 2017, if not already done.”
Few exemptions are included such as the Basic Savings Bank Deposit Accounts (BSBDA), Jan Dhan account and zero-balance accounts. BSBDA were brought in to take care of simple banking needs of people, which come with free ATM card, monthly statement and chequebook.
Though earlier the RBI has earlier issued a directive stating that if PAN or Form No.60 is not provided in respect of such accounts, no withdrawal will be allowed from the accounts having substantial credit balance/deposits, this time the notification is quite intensified and made mandatory.