How To Link Aadhaar To Mutual Funds Investments: Mutual fund investments are open-end, professionally managed investment funds. The Government of India has stated that citizens must link the account to the Aadhaar as per the Prevention of Money Laundering Act (PMLA) Rules, 2017 amendment. This article briefs readers about the importance of linking the Aadhaar Card or Aadhar Number to Mutual Funds Investments. They are R&T Agents and their roles, and the steps to Link Aadhaar to Mutual Funds Investments online and offline.
Why Link Aadhaar to Mutual Funds Investments?
As per the PMLA rules or Prevention of Money Laundering Act, 2017, all financial institutions have been asked to undertake the following requirement,
“The client must be an individual who is eligible to be enrolled or apply for an Aadhaar number. The individual must submit to the reporting entity- Aadhaar number and PAN or Form No. 60.”
For a brief period, Aadhaar has become one of the most prominent documents to own. For the function of specific mandatory provisions regarding welfare schemes, the document has also been extended to several other services. The Supreme Court insisted that Aadhar be linked to Mutual Funds to curb investment of unaccounted money.
By linking Mutual Fund investments with Aadhaar, the individual authorises the agent for sowing the individual’s Aadhaar number based on PAN or any other combination (documents like Driver’s License) in all the accounts maintained with asset management companies. This step was mainly for the KYC (know-your-customer) and other related due diligence purposes, along with the PMLA requirements and the UIDAI guidelines. Using the Aadhar link MF feature, individuals can start investing in mutual funds faster by providing documents like PAN, Aadhaar, and other necessary information.
Further, one also authorises the agent to download and share the Aadhaar and demographic information (including updated personal and professional information).
This is done with the Central KYC Registry, other KYC agencies like the SEBI-registered KRAs or the KYC registration agents, wherever the need for the document is applicable and warranted by regulators or the PMLA.
The Government has also directed registrars and R&T agents to help customers with their account links. However, individuals will not be required to update Aadhaar with each fund but will be required to update the Aadhaar with each agent if different registrars manage the Mutual Funds.
Who are R&T Agents?
To link the Aadhaar with all the existing mutual fund investments, one must consult the R&T agents. R&T or Registrar and transfer agents are individuals who maintain records of every mutual fund transaction on behalf of the fund house. The primary Registrar and Transfer or R&T agents in the Indian Mutual Fund space are as enlisted below-
- CAMS or Computer Age Management Services Ltd Registrar is for companies like ICICI, HDFC, Birla, SBI, DSP, BlackRock and several other Mutual Funds investments
- Karvy Computershare Ltd is Registrar and Transfer Agent for fund houses that include UTI, Reliance, TATA, Principal, LIC, and several other mainstream Mutual Funds Investments.
- Sundaram BNP Paribas Fund Services is the Registrar for Sundaram and BNP Paribas Mutual Funds alone
- Franklin Templeton International Services (India) Pvt. Ltd is the in-house Registrar and Transfer or R&T agent for Franklin Templeton Mutual Funds.
R&T or Registrar and Transfer agent regarding the Computer Age Management Services or CAMS has launched an online facility that helps investors link mutual fund investments to Aadhaar. A few other R&T or Registrar and Transfer agents such as Sundaram BNP Paribas Fund Services and Karvy are yet to begin this service but mostly offer SMS and offline services.
How To Link Aadhaar With Mutual Fund Investments through Computer Age Management Services?
- The step is to click on Investor Services present on the Computer Age Management Services or CAMS website on the top menu.
- The next step is to fill in with your registered email ID and PAN Number. Upon succeeding, the page auto-populates with the names of credible fund houses where you would be holding the mutual fund units. The third step is to click on all the fund houses and fill in the registered Aadhaar and registered mobile number and upon succession, click on the submit option
- You would get a One-Time Password. Enter the OTP number and click on the submit option
- You will receive an acknowledgement on successfully linking the Aadhar with the Mutual Fund Investment
- You will also receive the acknowledgement email from the Unique Identification Authority of India (UIDAI)
Link Aadhaar with Mutual Fund through SMS
Individuals can also link the Mutual funds with Aadhaar through an SMS. To link your Aadhar through SMS, follow the steps listed below:
- Step 1: Type a message in the format ADRLNK <space> PAN Number <space> Aadhaar Number <space>Y
- Step 2: The next step is to send the SMS to the number +91 9212993399
- Step 3: The letter Y in the message provides consent to the R&G agent to authenticate and put in the Aadhaar Number with the Mutual fund Investment
- Step 4: the receiver will get a confirmation message on successful Aadhaar linking
- Step 5: Also mention to link the Aadhaar with Mutual funds managed through CAMS, Franklin Templeton, and Sundaram BNP
- Step 6: In this final step, link the mobile number with the mutual fund to avail this facility
Steps to Link the Mutual fund to Aadhaar through an Offline Mode
Another possibility is where investors cannot link the mobile number or email ID with the mutual fund account. In such cases, investors can also opt for connecting the Mutual fund with Aadhaar offline as below-
- The first step is to fill the Aadhaar linking form mentioning the Mutual fund details and the Aadhaar details
- The second step is to attach a self-attested copy of the Aadhaar card with the application form
- The third step is to submit the offline form at the nearest service centre of the respective Mutual fund manager
- The final step is that investors will get a confirmation message on the successful Aadhaar linking
Few Things To Remember While Linking Aadhar to Mutual Funds
- Irrespective of the mode, mobile numbers must be linked with Aadhaar for OTP-based authentication
- NRIs are not applicable and eligible for the Aadhaar-linking process
- The investor’s mobile number should also be connected with the Mutual fund account for easy authentication
- The details in the Aadhaar linking form should be similar to the Aadhaar card and the particulars it compasses. The fund will be declined to connect with the Aadhaar
- Mutual funds can also be associated with Aadhaar through PAN Number.
Who Should Link Aadhaar with Mutual Funds?
- All holders and investors of mutual funds, whether the person is a joint shareholder, first holder, or a guardian in case of minors, Power of Attorney holders and even donors who hold children’s schemes, have to furnish the Aadhaar linking process
- NRIs do not have to link their mutual funds as they are not applicable and eligible for the Aadhaar card linking process
- Residents of three particular states – Jammu & Kashmir, Meghalaya, and Assam are also exempted from Aadhaar connecting with the Mutual Funds process
- In the case of group or non-individuals such as companies, firms, etc., all authorised signatories are subjected to submit the Aadhaar details to communicate with the Mutual Fund process
- In case of investments undertaken by the HUFs or the Karta of the family, they have to provide the Aadhaar card to complete the linking process