The Government of India added mutual funds to the list of documents and financial products that must be linked with Aadhaar. In this article, we cover the following topics:
The last date for linking Aadhaar with PAN has been extended to 31st March 2023.
Following an amendment in the PMLA Rules, 2017, it was made mandatory to link mutual funds with the Aadhaar of investors. Failure to do so could result in the folio becoming inoperational. Investors can also be barred from making new investments or even withdrawing their money until they had linked their Aadhaar.
The move is aimed at curbing investment of unaccounted money into mutual funds. While one may argue that mutual fund investments are accounted and legal, no one is exempted from the process. However, it is a one-time process that has been made easy with a range of options that allow you to link your mutual funds with Aadhaar. There is a belief that increasing formalities will make investing in mutual funds difficult.
There are no second thoughts on the fact that linking Aadhaar with mutual funds is a cumbersome process. ClearTax has devised a much simpler alternative solution – the e-KYC. Using this feature, you can start investing in mutual funds in less than five minutes by providing your PAN, Aadhaar, and other necessary information.
You will also get suggestions that are best suited for your investment goals, tax benefits, budget, tenure, and so on. The government has also directed registrars and R&T agents to help link their customer’s Aadhaar. So, even if you have invested in different funds, linking your Aadhaar with registrars and R&T agents will result in all your funds getting linked to your Aadhaar.
You will not be required to update Aadhaar with each fund. You will be required to update your Aadhaar with each agent if different registrars manage the funds.
Successful completion of this process will ensure that all your funds with CAMS will be linked with your Aadhaar. You can follow these simple steps by visiting the link here.
To link funds via Karvy, you can go to their official site.
Suppose your funds are managed by Franklin Templeton/Sundaram Mutual Fund/BNP Paribas Mutual Fund, the process is entirely online.You can visit the respective sites by clicking on the fund house name mentioned above. Individuals who do not possess their registered mobile or wish to do the Aadhaar seeding offline can do so by visiting the office of their registrars or respective mutual funds.
As of now, there is no deadline to link Aadhaar with mutual funds post a Supreme Court decision which extended the deadline until further notice. If you would like to avoid last-minute hassles, it is advised that you link your Aadhaar details now.By completing the process, you authorise your R&T agents to download as well as share your Aadhaar and demographic information with the Central KYC Registry or other KYC registries such as SEBI. The consent will also remain valid for updating new and existing folios services by the registrars.