New Delhi: The PAN Card is one of the most important documents in India and its full form is Permanent Account Number. It is a unique alphanumeric code assigned to all entities carrying out financial activities like opening a bank account, issuing a debit/ credit card, getting income tax refunds, etc. There is a 10-digit unique alphanumeric number in every PAN Card allotted by the Income Tax Department.
However, a PAN Card can be used for fraudulent activities as well. Sometimes, you will start receiving SMS alerts about your credit score or eligibility for a hefty loan even when you have not applied for any. Recent findings point out that many fintech companies access our personal information including our PAN details without obtaining our consent.
The decision of the government
To protect the data of the common people, the Indian government has restricted unauthorised access by tech companies to PAN details in a bid to tighten the data protection regulations. According to the latest direction of the Ministry of Home Affairs (MHA), the Income Tax department has to restrict such access to avoid fraudulent use of sensitive personal information.
The move comes as fintech companies were misusing the customers’ PAN details to build profiles. The data would be sold for financial products and also to verify information and it has raised concerns about data privacy and security. Such unauthorised access will be curtailed with new regulations.
PAN-Aadhaar link
In other news, from November 6, everyone has to link their Aadhaar card with the PAN Card mandatorily as per the directions of the Indian government. This will ensure financial transparency and reduce potential fraud. The deadline to do so is December 31, 2024, and if not done, then the PAN will be deactivated. Thanks to these new rules, everyone’s financial information will be secure and used ethically which will reduce the risk of financial fraud and cybercrime.
The PAN Card is one of the most important documents in India. However, a PAN Card can be used for fraudulent activities as well. In that regard, the government has made a big announcement. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
