Benefits of linking Aadhaar with bank account

Benefits of linking Aadhaar with bank account

In India, linking Aadhaar card with bank accounts has become mandatory for all account holders as per the government’s directive. Aadhaar, a unique identification number, issued by the Indian government, can be linked to any bank account, making the process of banking and digital payments easier and more accessible. In this article, we will discuss the benefits of linking Aadhaar with a bank account.

Ease of Transaction

By linking Aadhaar to your bank account, you can perform various banking transactions, including fund transfer, balance enquiry, and more using the Aadhaar Enabled Payment System (AEPS). AEPS is a digital payment system that facilitates banking transactions through biometric authentication. You can use AEPS at any bank branch or banking correspondent’s location, making banking accessible to even remote locations.

Government Subsidies and Benefits

The government of India provides various subsidies and benefits, such as LPG subsidy, welfare schemes, and scholarships, to citizens through direct benefit transfer (DBT). Linking Aadhaar to your bank account is mandatory to avail of these benefits. Once linked, the subsidies and benefits will be credited directly to your bank account, reducing the chances of fraud and corruption.

Faster Account Opening

Linking Aadhaar to your bank account can speed up the account opening process. You can open a bank account using your Aadhaar card as the sole KYC document. This can save time and effort as compared to the traditional account opening process, which involves multiple documents.

Digital Identity Verification

Linking Aadhaar to your bank account also serves as a digital identity verification process. The biometric information stored in Aadhaar ensures that the account holder’s identity is verified, reducing the chances of fraudulent activities.

Better Financial Management

Linking Aadhaar to your bank account can also help in better financial management. The linkage allows banks to keep track of your transactions, which can help in identifying fraudulent activities or errors. It can also help in creating a credit history, which can be useful in availing loans and other financial products.


Linking Aadhaar to your bank account has several benefits, including ease of transaction, government subsidies and benefits, faster account opening, digital identity verification, and better financial management. With the government making it mandatory, it is essential to link your Aadhaar card to your bank account to avail of these benefits and make the most of the digital payment system in India.

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