The controversial Aadhaar has grown to become a topic of conversation both, in India and abroad. The Narendra Modi-led government has incessantly pressured the public to link the card with their banks, phones, and other essential services. While a certain group of the society has cried foul on the “invasion” over their privacy, Non-resident Indians worry whether they will have to get an Aadhaar to link their accounts too.
To begin with, the Unique Identification Authority of India (UIDAI) for individuals was introduced by the government to identify each Resident Individual and further link the same for various benefits like Government Subsidies, Concessional Benefits, Cash Benefit Transfers, etc., along with Utilities like bank accounts, income tax returns, phone cards, etc. According to the UIDAI rules, a Resident Individual who resides in India for over 182 days in preceding 12 months only can apply for Aadhaar Card. As such, an NRI cannot apply for Aadhaar Card unless his stay in the country exceeds 6 months.
For the said reason NRIs Bank accounts ; Mutual Fund Investments ; Insurance Policies ; Demat Accounts are not covered by requirements of Aadhaar Card and in case of purchase or sale of property too proof by way of copy of Passport ; Overseas Visas ; Place of Overseas Address etc. exempts NRIs. Now under the provisions of Foreign Exchange Management Act, 1999 (FEMA) Non Residents are required to maintain Non Resident Ordinary (NRO) & Non Resident External (NRE) account / Foreign Currency Non Resident account (FCNR) which do not require Aadhar cards.
Bank account of Migrating Individuals are required to designated as NRO account. Now if such Bank accounts ; Mutual Funds ; Demat Accounts ; Insurance Policies etc. are continued as Resident investments then the Institution will logically insist for Aadhaar Card as the records show the accounts belonging to a Resident of India. In such cases NRIs should transfer the balance in Resident Bank accounts to NRO account and redesignate Mutual Funds ; Demat accounts & Insurance Policies from Resident status to Non Resident Non Repatriable (NRNR) accounts.
