Why Should You Link Your Bank Account with Your Aadhaar?

23 MARCH, 2021

Aadhaar is a 12-digit unique number that is issued by the Unique Identification Authority of India (UIDAI). Every Indian can have an Aadhaar Card after successful verification through the required process. 

There has been some confusion regarding linking your bank account with Aadhaar in the past.  At the moment, it is not mandatory to your link bank account with Aadhaar*. However, there are many benefits of linking your bank account with Aadhaar.

If you are having second thoughts about linking your account with Aadhaar, here are a few advantages of the process:

Receive subsidies

To make it easy for beneficiaries to receive subsidies and scholarships, the government transfers the benefits directly to the recipient’s bank account that is connected to DBT (Direct Benefit Transfers). However, the account must be linked to an Aadhaar number to receive the subsidies.   The subsidies can be welfare funds, LPG Subsidy, pensions, scholarships, MNREGA wages etc. that the recipient qualifies for.

Hassle free IT refund

If you link your Aadhaar with your savings bank account, you can receive the IT refund after filing IT return without any hassles.


Aadhaar Enabled Payment Systems (AEPS)

Although they are increasing their service base, some parts of the country still lack access to banks. This is where biometric based Micro-ATMs come in the picture. Account holders can carry out their banking and financial transactions such as money deposit, balance inquiry, cash withdrawals, through Aadhaar Enabled Payment System (AEPS) that can be carried out by a Business Correspondent (BC)/Bank Mitra.

Ready to link your Aadhaar?

These are just a few of the many benefits that come when you link your bank account to your Aadhaar.

You can click here to link your Aadhaar number with your bank account now.


*Submission of Aadhaar details is voluntary.



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