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.
1. Aadhaar with Mutual Funds: Why Should You Link
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.
2. Online Linking with CAMS
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.
- Step 1: Enter all the information, including your PAN, Aadhaar number, name, date of birth, and gender.
- Step 2: You can select all the fund houses that appear on the screen as per your investments.
- Step 3: Click on ‘Generate OTP.’ This will ensure that you receive OTP on your mobile number registered with UIDAI.
- Step 4: Enter the received OTP and click on verify.
- You will get an acknowledgement mentioning the successful completion of the procedure. You will also receive an acknowledgement email from UIDAI.
3. Online Linking with Karvy
To link funds via Karvy, you can go to their official site.
- Step 1: Enter your PAN number and click on ‘Validate’.
- Step 2: Click on ‘Generate OTP’ which will ensure an OTP is sent to your registered mobile number.
- Step 3: You can select the funds that you want to link. Preferably you should select all your funds managed by the fund house.
- Step 4: Enter your Aadhaar number and click on the submit button. You will get a confirmation message from Karvy.
- Step 5: Alternatively, Karvy allows you to link your Aadhaar with mutual funds using the SMS. You can simply send (ADRLNK ) to 9212993399 from your mobile number registered with Karvy.
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.
Frequently Asked Questions
Do I need to link my aadhar with all the funds separately ?No, there is no need to update each fund with aadhar separately, if can update with each agent with whom you have funds.
Is there any deadline to link aadhar with Mutual Funds?No, as of now there is no deadline to link Mutual Funds with aadhar.