Reasons Why an Aadhaar card is Mandatory for Every Indian Citizen


Aadhaar is a 12-digit unique identification number that is issued to you by the Central Government, and your Aadhaar card stores and verifies your identity in government records. Apart from basic information, it also contains your biometric and demographic information. The Aadhaar card importance lies in the fact that it is biometrically linked to you. This information rests in the government’s database and can be used by authorities to verify details easily. Since the information is stored digitally, it bypasses the need for physical checks and adds efficiency and speed to most procedures.

While the Aadhaar card is a government-linked identification document, it has other uses too. Take a look at the other instances where having an Aadhaar card is beneficial.

Applying for PAN card

Your PAN card is essential to your profile as it keeps track of all financial transactions that have a taxable component. When applying for a PAN card, it is mandatory that you have your Aadhaar card. Furthermore, existing PAN cards that are not linked to your Aadhaar card will soon be deactivated. This has adverse effects when it comes to tax payments as individuals without PAN pay a higher amount.

Opening a bank account

Your Aadhaar card helps you open a bank account too as it provides all the e-KYC information required. It also assists the bank with quick verification your information owing to the biometrics on your Aadhaar card. Prevention of banking fraud is easier for financial institutions as well.

Accessing government schemes

Government schemes are a great way to get a step closer to any goal, whether it’s buying a house or starting a business. However, to avail most, you’re required to have an Aadhaar card. For example, Aadhaar is mandatory for students who wish to apply for central scholarships at the college level. Similarly, it is also mandatory if you want to benefit from the Credit Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana that aims to creating housing for all.

Filing of income tax returns

As per a Supreme Court ruling, it is mandatory to link your Aadhaar with PAN card before you are filing income tax returns. This is because there is a mandatory field on the online ITR form that requires you to enter your Aadhaar details and Aadhaar enrolment number.

Aadhaar card benefits are not limited to these 4 instances. This document is a necessity when applying for all kinds of financial assistance too, as it helps ascertain authenticity. Providing such a document also speeds up the application process as it stores several pieces of information.

For example, when you apply for a Personal Loan, you are required to submit a few documents such as KYC documents and income proof. By submitting the right documents in one go, you can benefit from instant approval. Here, the Aadhaar card is extremely handy as you can use it to take care of all KYC formalities. As financial institutions are now able to process your documents and application faster, they extend this benefit to you in the form of quicker disbursal.

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