mandatory quoted pan no. Related section

[shweta Jain]

A bank require from customer his pan no. If cash deposit exceeds 50000 under what section .is it mandatory I in nature or not?

[Mahir S]

The Reserve Bank of India has issued circular No. DBOD.AML.BC.No.29/14.01.001/2013-14 dated July 12, 2013, reiterating the various guidelines on the KYC as mentioned below:

a) In terms of circular DBOD.BP.BC.110/21.02.051/98 dated November 19, 1998, quoting of PAN number is mandatory while opening an account or making a time deposit of ₹ 50,000/- or above, and any person who has not been allotted a PAN number shall make a declaration in Form NO. 60/61.

AI Summary

Mandatory PAN quoting required for specified deposit thresholds; absence of PAN requires Form 60/61 declaration under KYC measures. Banks must obtain a customer's PAN for account opening and for time deposits or cash deposits at or above the prescribed threshold; if a person lacks a PAN they must provide a declaration in Form 60 or Form 61. This requirement stems from RBI KYC guidance and must be reflected in banks' account opening, deposit acceptance, and record keeping procedures to satisfy AML and KYC compliance.