Customers of SBI are advised to link their PAN and Aadhaar numbers before the deadline or experience complications with banking services.

 If you have not yet linked your Permanent Account Number (PAN) to your Aadhaar, be prepared to face the penalties in banking services and financial activities. The Income Tax Department had already extended the deadline for linking PAN and Aadhaar until September 30. After the deadline, the unlinked PAN would become worthless and inactive.

“If a person fails to reveal the Aadhaar number, the permanent account number given to such person must be made inoperative after the notified date in the manner as may be provided by rules,” says Clause 41 of Section 139AA of the Income Tax Act.

The Income Tax Department issues a 10-digit unique alphanumeric number known as a Permanent Account Number. It is linked to all of an individual's financial transactions, which aids tax agents in preventing tax evasion and fraud.

To avoid any difficulty, banks have begun encouraging consumers to link their PAN and Aadhaar numbers as soon as possible. “We advise our customers to link their PAN with Aadhaar to avoid any hassle and continue to enjoy a seamless banking service,” the State Bank of India (SBI) wrote on Twitter. The bank went on to say, “If PAN is not linked, it will become inoperative or inactive, and it will be unable to be quoted for specified transactions."

A valid PAN is required to invest in mutual funds. You will be unable to invest in mutual funds if your PAN becomes invalid due to non-linkage with Aadhaar. Not only will your mutual fund investment be halted, but most of your investment-related actions will be halted if you fail to link your PAN and Aadhaar. It will be impossible to make new investments or redeem existing ones.

Your existing and previous systematic investment plans (SIPs) will be terminated as well. When purchasing bank draughts, pay orders, or banker's cheques from a banking business or a co-operative bank, a customer must submit PAN details when paying more than 50,000 in cash in a single day.

To enjoy "seamless banking services," SBI has asked its customers to go to the Income Tax e-filing portal and link their PAN and Aadhaar numbers.

In the Income Tax Act, the Union government has included a new provision 234H. If a person's PAN and Aadhaar are not connected by the deadline, a penalty will be imposed in Budget 2021. If a person misses the deadline, he or she will be responsible to pay a penalty of not more than Rs 1,000.