Banks should link all accounts with Aadhaar by 31 March: Sitharaman

Finance Minister Nirmala Sitharaman has directed the banks to complete the linking of all bank accounts with Aadhaar by 31 March next year. On Tuesday, Finance Minister Nirmala Sitharaman gave these instructions to all banks. He said that the work of linking accounts with PAN should also be completed by then.

Addressing the 73rd annual general meeting of the Indian Banks Association (IBA), the Finance Minister said that the story of financial inclusion is not yet complete and banks have to take it forward. Many accounts are not linked to Aadhaar yet.

At the meeting, Sitharaman told senior officials of banks that ideally by the end of December this year, the linking of all accounts with Aadhaar should be completed. But if so for some reason. If not done, then all these accounts must be linked to Aadhaar by 31st March.

The Finance Minister said that banks should discourage cash payments and encourage their customers to make digital payments. Banks should adopt digital payment technology and all methods related to UPI payment should be used. Sitharaman said that the trend of UPI in banks should increase so much that it should be included in the general conversation.

Banks should also encourage RuPay cards. He said that whoever needs a digital card, banks should give RuPay cards to him. In the meeting, the Finance Minister reiterated that the country needs big banks. The government believes that the operating cost of big banks decreases. Currently, SBI is the only one among the 100 largest banks in the world.