The RBI has decided to leverage the network of 1,600 urban cooperative banks across the country as PAN service agents. The move would greatly increase the number of PAN users in the country.
However, only those of the UCBS having strong finances would be allowed to become PAN service agents , the apex bank says.
PAN is a 10 digit alphanumeric number issued by the IT dept. It is mandatory to quote PAN in all financial transactions including sale and purchase of immovable property , vehicle and cash payments exceeding Rs. 25,000. PAN is also required while making a fixed deposit exceeding Rs. 50,000 with a bank or post office.
UCBS could become PAN service agents through a tie up with UTI Infrastructure and Technology Services , with prior approval from the apex bank.
However, the RBI has asked the UCBS to exercise caution while operating as PAN service agents. They would be required to avoid violations such as delay in forwarding the applications, to UTIITS and not ensuring perfect documentation.