SB Order 02/2022: Introduction of online PAN verification functionality in Finacle CBS System | SOP for online validation of PAN in POSA (Post Office Savings Bank) Account
SB Order No. 02/2022. F.No. 25'0912012-FS-CBS-Part (1) Govt. of India Ministry of Communications Department of Posts (FS. Division) Dak Bhawan, New Delhi - 110001 Dated :25.01.2022
Subject: Introduction of online PAN verification functionality in Finacle CBS System - Reg.
Sir / Madam, At present, in Finacle CBS System, the PAN Card of the Depositors are updated as part of KYC compliance. The PAN Card entered in the system is validated only based on the standard PAN format i.e. 10 ALPHA Numeric Characters. But the correctness of the PAN card numbers provided by the Depositors or the PAN entered by the Post Office officials are not validated with NSDL currently.
2. During the filing of TDS returns, many of the PAN numbers are not accepted in Income Tax statements due to invalid / wrong PAN, which leads to complaints from Depositors regarding non availability of TDS deducted details in Form 26,{S of the Depositors. In order to settle these complaints, the DDOs are required to file correction TDS statements which unnecessarily put the DDOs and Depositors in trouble.
3. Further, as per Rule 6 of Govt. Savings Promotion General Rules 2018 (GSPR 2018), w.e.f. 18.12.2019, for opening of any account in Post Office, submission of either PAN Number or Form - 60 is mandatory and if Form - 60 is submitted by the customer, PAN Number is to be submitted by the Depositor without fail, within next six months. If a depositor who has already opened an account prior to the date of notification (GSPR 2018) and has not already submitted his Permanent Account Number, the depositor shall do so within a period of six months from the date of notification (GSPR 2018) and in the event of the failure of the depositor to submit the Permanent Account Number within the specified period of six months, his account shall cease to be operational till the time the depositor submits the PAN Number.
4. Hence, it has been decided to restrict the account opening without entering either PAN or Form - 60 details and validate the correctness of the PAN number entered by availing the facility of online verification of PAN Numbers being provided by NSDL. Accordingly Finacle CBS System is integrated with NSDL System.
5. Patches have been deployed in CBS Finacle System to validate the PAN entered at the time of creation and modification of CIFs of the Customers / Depositors and when any cash transaction exceeding Rs. 50,000/- is carried out.
6. A detailed Standard Operating Procedure (SOP) for online validation of PAN is attached herewith.
7. Checking and validation of the PAN by the Post Office offiicials has to be done with care to avoid mistakes: Details of the PO users validating the PAN are captured in audit trials.
8. Circles are requested to take necessary action in this regard and this order may be circulated to all the Post Offices.
9. This is issued with the approval of DDG (FS)
Standard Operating Procedure for online PAN Validation Introduction At present, in Finacle CBS System, the PAN Card numbers of the Depositors are updated as part of KYC compliance. The PAN card number entered in the system is validated only based on the standard PAN format i.e. 10 ALPHA Numeric Characters. But the correctness of the PAN card numbers provided by the Depositors or the PAN entered by the Post Office officials are not validated with NSDL currently. During the submission of TDS, many of the PAN numbers are not accepted in Income Tax statements due to invalid / wrong PAN numbers,
which leads to complaints from Depositors regarding non availability of TDS deducted in Form 26AS of the Depositors. In order to settle these complaints, the DDOs are required to file correction TDS statements which unnecessarily put the DDOs and Depositors in trouble. Hence, it has been decided to validate the correctness of the PAN number entered at the time of creation and modification of CIFs of the Customers / Depositors and at time of any cash transaction exceeding Rs. 50,000/-.
Accordingly, the Finacle System and NSDL System has been integrated for availing facility of online verification of PAN numbers. Patches have been deployed in CBS Finacle System
(i). To validate a PAN captured during CIF Creation and CIF modification.
(ii). To restrict creation and modification of CIF without validation of PAN.
(iii). To restrict opening / modification of account and performing cash
transactions exceeding Rs. 50,000/- without validation of PAN.
(iii). To view the PAN Verification Status at Post Office Counters / e-Banking
and Mobile Banking Apps
(iv). To generate reports related to PAN Verification 1. Procedure for validation of PAN in Finacle Core System As per Rule 6 of Govt. Savings Promotion General Rules 2018 (GSPR 2018), w.e.f. 18.12.2019, for opening of any account in Post Office, either PAN Number or Form – 60 is mandatory and if Form – 60 is submitted by the customer, PAN Number is to be submitted by the Depositor without fail, within next six months. If a depositor who has already opened an account prior to the date of notification
i.e. GSPR 2018 and has not already submitted his Permanent Account Number, the depositor shall do so within a period of six months from the date of notification (GSPR 2018) and in the event of the failure of the depositor to submit the Permanent Account Number within the specified period of six months, his account shall cease to be operational till the time the depositor submits the PAN Number
(A). At the time of Creation of New CIF (Customer Information File) i. The Counter PA shall ask the Customer to submit either PAN Card detail or the Form – 60. ii. The Counter PA shall create the CIF using CCRC menu in Finacle. On the CIF Creation screen, after entering name of the Customer, the Counter PA should select the Tax status as “PAN Card Available”, if the Customer provided PAN Details. iii. Immediately after selecting the Tax status, an alert message prompting the Counter PA to capture the PAN card will be thrown by the System as follows.
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