• Home
• /
• Business

Aadhaar? It's your choice

To apply or not to apply for an Aadhaar card - that's the million dollar question on the minds of several Indian expatriates ever since the Indian government made the document mandatory for Indian residents to file their tax returns.
The Unique Identification Authority of India, which issues the Aadhaar card, has recently clarified that the document is not mandatory for non-resident Indians (NRIs). However, NRIs are of the opinion that the government cannot deny them right to get an Aadhaar card, which is a unique identity for all Indian citizens.
In an exclusive interview with Khaleej Times, T.V.S. Ramana Rao, regional head, Middle East, West Asia and North Africa at the State Bank of India (SBI), sheds more light on the contentious issue as well as how the bank functions for 'every Indian', including millions of expats living in different parts of the world. Here are excerpts of the interview:
Q - Can you tell us why NRIs are not allowed to apply for an Aadhaar card? Responding to our earlier report, Indian expats from as far as the US said they faced several problems with bank transactions, including fund transfer. Is it because of not having an Aadhaar card?
Every Indian has the right to get an Aadhaar card. However, NRIs need not obtain the Aadhaar as it is required only for Indian residents. If somebody is keen to get the Aadhaar card, they can apply for it showing their address and ID proof. People who have already obtained it before moving out of the country can ask the bank to link the card with their account. As per rules, NRIs don't need Aadhaar or PAN cards for any bank transaction, including fund transfer from NRE to NRO accounts.
Q - What about people of Indian origin who hold OIC cards? Do they need an Aadhaar card to operate their bank accounts and own properties in India? Are they liable to pay income tax?
Whether you are an NRI or PoI, if you earn any income inside India, it is liable for taxation. If you earn income outside India and qualify as an NRI, you are not supposed to pay tax on that income. The threshold for taxable income is ?250,000 per year and only those who have income in excess of this limit have to file a return. Interest earned on non-resident external (NRE) accounts or foreign currency non-repatriable (FCNR) accounts are not subjected to taxation. But interest on any other deposit is subjected to taxation.
Q - Why is there a hesitation to issue Aadhaar cards to NRIs?
There is no such reluctance. Anybody can go to an Aadhar enrollment centre and get it free of cost. If somebody is keen to get it, submit the address and identity proof. NRIs can give their passport as identity proof. And if the address proof matches with the identity proof, they can apply for an Aadhaar card.
Q - Will granting Aadhaar cards to NRIs help the government curb benami-operated accounts?
For that, banks depend on KYC (know your customer) details. Nobody can send amounts disproportionate to their income. The Central Bank monitors it. When somebody tries to send a huge amount which does not match their profile, alerts are generated in the anti-money laundering cell. If any irregularity is found, banks file a suspicious transaction report and report it to the government, not to the customer.
Q - SBI savings bank account holders complain of lower deposit rates. Will this not affect the saving habit of expats?
The savings bank rate has recently come down from four to 3.5 per cent. I don't think it will affect expats' saving habit because people don't consider interest rate on the savings bank account. They maintain these accounts for routine expenses or until they decide on further investment. For example, before the merger, one-third of State Bank of Travancore deposits were from their NRI clientele. Substantial savings come only from individuals and to some extent from corporates.Though it depends on savings capacity of a person, Indian expats save in whatever way they can.
- nazeem@khaleejtimes.com