Aadhaar
Full form: Unique Identification Number
BankingAadhaar is a 12-digit unique identification number issued by UIDAI to every Indian resident, serving as proof of identity and address. Mandatory for linking to PAN, bank accounts, and most financial services.
In detail
Key financial uses: Aadhaar-based eKYC enables instant, paperless account opening for banks, mutual funds, and demat accounts. Aadhaar-PAN linking is mandatory -- unlinked PAN becomes inoperative with 20% TDS on all transactions. Digilocker stores all documents digitally. Direct benefit transfers (LPG subsidy, MGNREGA wages) go directly to Aadhaar-linked accounts.
Real-life example
Ravi opens a Zerodha demat account in 10 minutes using Aadhaar OTP eKYC. No physical documents needed. His CKYC record is created and valid for all future financial accounts.