Importance of linking your savings account to your Aadhaar card

Posted on Wednesday, August 30th, 2023 | By IndusInd Bank

In an increasingly digitised world, technological advancements are reshaping the way we manage our finances. Hence, it is crucial to link your savings accounts to your Aadhaar card for security and enhanced banking services. This integration serves multiple purposes that extend beyond just a regulatory requirement.

Along with digital identity verification, the integration of your savings accounts with Aadhaar opens the door to several government and banking services. In this article, we will find out the significance of linking your savings accounts to your Aadhaar card. Additionally, we will explore the various benefits and implications of the linkage.

Understanding Aadhaar: The foundation of digital identity

Before we explore the reasons behind linking your savings accounts to your Aadhaar card, let us first understand what Aadhaar is.

Aadhaar is a unique, 12-digit identification number issued by the government to the residents of India. It serves as a universal proof of identity and address.

Aadhar facilitates seamless access to government services, subsidies, and various financial transactions. The Aadhaar system is designed to centralise and streamline information, making it an invaluable tool in the realm of digital identity management.

To open savings accounts in India, you will require your Aadhaar number as an important know your customer (KYC) document. Banks and financial institutions use your Aadhaar number for digital verifications.

Being future-ready, IndusInd Bank employs an integrated system of video KYC (VKYC), which helps verify your details instantly and lets you open an online savings account within minutes. Know more about the savings account KYC process.

Important reasons to link your savings accounts to Aadhaar

Enhanced security and identity verification

One of the most compelling reasons to link your savings accounts to your Aadhaar card is the heightened security and identity verification that it offers. With instances of identity theft and financial fraud on the rise, linking your savings accounts to your Aadhaar acts as an additional safety measure.

Financial institutions can cross-reference your biometric and demographic data with the details on your Aadhaar card. This will ensure that only you have access to your account. This added layer of security bolsters customer confidence and trust in the banking system.

Streamlined government subsidies and benefits

Linking your savings accounts to your Aadhaar card is especially advantageous when it comes to accessing government subsidies and benefits.

Many welfare schemes, such as MNREGA wages, scholarships, direct cash transfers, subsidies for essential commodities, and pensions are directly deposited into your Aadhaar-linked bank accounts. This mechanism eliminates intermediaries. This elimination reduces the likelihood of funds being siphoned off and ensures that the intended recipients promptly receive their entitlements.

Ease of online transactions and banking

In an era where digital transactions have increased, the integration of Aadhaar with your savings accounts simplifies online banking. Aadhaar-enabled payment systems (AEPS) enable you to carry out financial transactions using biometric authentication.

Such authentication eliminates the need to remember multiple passwords and PINs. Additionally, it will expedite transactions and reduce the risk of unauthorised access to your account.

Additionally, you get numerous benefits on your savings account transactions with a Delights Debit Card, if you open an IndusInd Bank Indus Delite Savings Account.

Security has always remained a matter of concern for both banks and customers. IndusInd Bank undertakes several measures to keep your savings accounts secure. Along with password and PIN protection, on your online transactions are OTP verified.

You will receive five per cent cashback on fuel, entertainment, dining, and OTT expenses. You also get up to 20 per cent discount on online food orders via Swiggy, besides 10 per cent off on orders made via BigBasket.

Compliance with regulatory requirements

The government has mandated to link your savings accounts with your Aadhaar card. You must not overlook this regulatory requirement. Compliance with this directive is essential to avoid potential disruptions in accessing financial services.

Financial institutions are required to periodically update customer records with accurate information. When you link your account with Aadhaar, you ensure that your records are up-to-date and in line with the regulatory guidelines.

Facilitating financial inclusion and digital payments

Linking Aadhaar with your savings accounts plays a pivotal role in advancing financial inclusion, particularly in remote and underserved areas. Even if you do not have traditional forms of identification, you can easily gain access to banking services by linking your account with Aadhar.

This inclusion will empower you to participate in the formal economy, avail of credit facilities, and embrace digital payment methods. You will also be able to contribute to the growth of a cashless economy.

Seamless account management and KYC process

For both customers and financial institutions, Aadhaar linkage simplifies the KYC process. KYC is a mandatory requirement for opening and maintaining bank accounts.

While opening IndusInd Bank Savings Accounts, you need to provide your Aadhaar details for identity verification and records. With the unique video KYC facility, this process becomes extremely simple. It can be completed anytime and anywhere during banking hours. Providing Aadhaar details ensures quick onboarding and seamless access to your bank account.

By linking your savings accounts to your Aadhaar card, you consolidate your identity and address proof. This reduces the documentation burden and expedites account-related processes.

Future-proofing financial services

As technology continues to evolve, Aadhaar linkage future-proofs financial services. The integration lays the groundwork for innovative solutions such as biometric-based authentication and e-KYC, thereby promising greater convenience and security in financial transactions.

By linking your savings account to Aadhaar, you position yourself to seamlessly embrace these advancements.

Conclusion

Linking your savings accounts to your Aadhaar card is beyond fulfilling regulatory requirements. It embodies security, convenience, and access to a multitude of services and benefits. With this integration, you ensure the safety of your financial assets. Additionally, you contribute to the broader goals of financial inclusion and technological empowerment.

As the digital landscape continues to evolve, IndusInd Bank keeps innovating its services to make your banking secure and convenient. With instant account opening through Video KYC, you get access to your account without the need for bank visits and hectic paperwork.

IndusInd Bank Savings Account also offers secure online transactions with real-time alerts and transaction updates. This will help you to track your payments and detect any unauthorised activities. Additionally, you get high savings account interest rates for better returns to meet your financial objectives. Open your IndusInd Bank Savings Account today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.