Following an amendment in the PMLA Rules, 2017, it was made mandatory to link mutual funds with your Aadhaar. Failure to do so could have resulted in the folio becoming inoperational, or investors being 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 totally 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.
While there are no second thoughts on the fact that linking Aadhaar with mutual funds is an additional burden that will make investing a cumbersome process, Cleartax has devised an easy alternative solution – the e-KYC. Using this feature, you can start investing in mutual funds in less than five minutes by simply providing your PAN, Aadhaar, and other basic information. You will also get suggestions that are best-suited for your investment goals, tax benefits, budget, tenure, etc.
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 and every fund. If your funds are managed by different registrars, then you will have to update your Aadhaar with each of the agents.
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 acknowledgment mentioning the successful completion of the procedure. You will also receive an acknowledgment 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 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 also allows you to link your Aadhaar with mutual funds using the SMS. You can simply send (ADRLNK <space> <PAN> <space> <AADHAAR NUMBER> <space><Y>) to 9212993399 from your mobile number registered with Karvy
If you have funds that are managed by Franklin Templeton or Sundaram Mutual Fund or BNP Paribas Mutual Fund, the process is entirely online and similar to the one seen above. You can visit the respective sites by clicking on the fund house name mentioned above. For users who are currently not in possession of their registered mobile or simply wish to do the Aadhaar seeding offline can do so visiting the offices of their registrars or respective mutual funds.
As of now, there is no deadline to link Aadhaar and 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 authorize your R&T agents to download as well share your Aadhaar and demographic information with 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.