The Government has made it compulsory for all the mutual fund houses to link their customers’ Aadhaar number with their respective mutual fund accounts.
This directive has been issued with respect to the amends made under the Prevention of Money Laundering Act(PMLA) Rules, 2017. There is no last date to link Aadhaar with mutual funds. This is a one-time procedure that every mutual fund investor needs to follow with in order to invest in mutual funds.
For those who are unable to do so until the last date will have their accounts blocked. So, it’s the time to take measures for your mutual fund accounts to remain operational throughout. This article will guide you on how to link your mutual fund with Aadhaar.
Procedure of Linking Aadhaar with Mutual Funds
1. Online Procedure through Registrar and Transfer Agent
2. Registering with mutual fund house
3. Physical KYC
Steps to Link Aadhaar via Registrar and Transfer Agent
Whether you are a new investor or an existing one, hardly matters. As everyone needs to comply with the norms set by the Government of India for seeding Aadhaar with their respective mutual fund accounts. Like others, you can very well do so by going to the website of Registrar and transfer Agents such as CAMS and Karvy –https://www.karvymfs.com/karvy/Aadhaarlinking.aspx. Or you can visit the website of Central Depository Services Limited by going through -https://www.cdslindia.com/rta/rta-list.aspx in order to know your nearest RTA office.
Submit your Aadhaar number and PAN details on any of the RTA website. It will take two-three days of the verification process and once verified will lead to the successful linking of your Aadhaar. If not online, you can do it manually as well. Visit any service centre of Registrar and Transfer Agent, request for the application form, fill in the details and submit them. Mutual fund houses will soon send you the email with a web link using which you will be able to update your other essentials.
Registering with the Mutual Fund House
Any new investor who has just started off with mutual funds or an existing one, updating Aadhaar is essential. So, if you are a newbie, you can link your Aadhaar to your account once you start investing. For example: if you are using Birla Sun Life Mutual Fund’s services, you can visit the website directly and begin with your Aadhaar based e-KYC. Enter your PAN details and select the option stating that you are a non-KYC compliant. Then, fill in your mobile number(enter the same number which is there on your Aadhaar Card) and other required details. Later on, within 2-3 working days, you will get a confirmed verification for successful linking of your Aadhaar on your registered mobile number.
Going by physical KYC, although traditional one, is an easiest one to follow with. You need to download the KYC form available on the websites of all the fund houses, registrars and transfer agents and AMFI, the regulatory body of the mutual fund industry. Fill in the details and submit at any of the nearest branches of the Karvy, CAMS or fund house affixed with a signed photocopy of your Aadhaar card.
Aadhaar Link through SMS
Type the syntax: Send(ADRLNK) to 9212993399 from your already registered mobile number. On verification, the same will be linked across all your folios at Karvy or Computershare.
3 Essentials to Consider
1. Check whether your name in the Folio matches the one in your Aadhaar. This will avoid getting your request for updating details rejected.
2. Joint account holders need to furnish their Aadhaar details in their mutual fund folio. But it is not required in the online procedure.
3. As of now, your details are updated with your registered mobile number. It means an OTP-based verification is all you need instead of a biometric one.
However, the deadline for both is the same as above, failing won’t allow you to transact further in the folio.
Documents Required to Link Aadhaar with Mutual Funds
1. Common application form(KYC) from the website of aforesaid operators
2. Hard copy of Aadhaar Card along with Xerox copy(duly signed)
3. PAN Card along with Xerox copy(duly signed)
Why is it important to Link Aadhaar with Mutual Funds?
It is imperative to link your Aadhaar with Mutual Funds. The importance is highlighted below:
1. Your mutual fund folios will be safe from the prying eyes of Internet frauds like black marketeering etc.
2. You will be able to do safe transactions i.e. buying, selling or switching within the schemes or AMC under the scanner of regulatory authorities.
3. You will be able to redeem your capital gains(whether short-term or long-term) quickly without any possible delays. Hence, it is easier to withdraw your profits from your respective accounts.
4. It will promote fair transparency in all mutual fund operations throughout India.
Consequences of Not Linking Aadhaar with Mutual Funds
Linking Aadhaar is a mandatory disclosure from the Government itself. Failing before the deadline may lead you to fall under the following circumstances:
1. By not linking your mutual fund folios with Aadhaar number leads to closing of your existing mutual fund accounts.
2. You won’t be able to get your new mutual fund folio that means you won’t be able to make fresh investments.