When initially the government launched Aadhaar card, there were a lot of questions that were left unanswered. These questions are being answered slowly by the government. Aadhaar has been linked with bank accounts, phone numbers, PAN card and many other vital documents. Aadhaar has become a very useful thing. Recently, there was news in the market that Aadhaar has been made mandatory for sale and purchase of stocks and mutual funds. This can be considered a major step as it will keep a check on black money. Before this, there were many people who used to input their black money in stocks and mutual funds. This step will make them think twice before doing it.
Talking about the process of linking Aadhaar to Mutual Fund Folios, it can be said that the process in itself is simple, lucid and self-explanatory. Below is a detailed discussion on this topic:
It is evident to everyone that there have been recent amendments to Prevention of Money Laundering Act Rules in 2017. Many of the financial institutions are advised to procure the Aadhaar Number which is also known as UID Number from their customers and link it to the respective accounts of the customers. For the convenience and ease of the people Computer Age Management Services Private Limited (CAMS) has initiated the process by which one can easily link Aadhaar to Mutual Funds folios via online without much hassle. CAMS is just like a mediator between the customer and Mutual Funds companies. CAMS is a Transfer Agency that unbiasedly provides services over 60% of assets of the industry across more than 10 Mutual Funds, 15 to be precise.
So, one is linking Aadhaar number or UID to Mutual Fund folios then one will be able to link only to those 15 Mutual Fund companies which it is associated with. The 15 Mutual Fund Companies that are linked with CAMS are as follows- HSBC Mutual Fund, DSPBR Mutual Fund, ICICI Prudential Mutual Fund, Birla Sun Life Mutual Fund, HDFC Mutual Fund, IDFC Mutual Fund, Kotak Mutual Fund, IIFL Mutual Fund, L&T Mutual Fund, PPFAS Mutual Fund, Mahindra Mutual Fund, SBI Mutual Fund, TATA Mutual Fund, Union Mutual Fund and Shriram Mutual Fund. Linking to CAMS means that one is automatically linked to all these Mutual Fund Companies. So, linking with CAMS is useful in many ways.
It is not that only CAMS is the only mediator between customers and Mutual Fund Companies. There are many other Transfer Agents as well. Some of the reputed ones are as follows – Karvy Computers which provides services to rest of the AMC, Sundaram BNP Paribas Fund Services which provides services only to Sundaram and BNP Paribas Mutual Funds Only and the last one is Franklin Templeton International Services which provides services only to Franklin Templeton Mutual Funds.
Steps to link Aadhaar
First option – linking Aadhaar Using KARVY platform
STEP 1: First requirement is the computer or laptop with a good internet. Now visit the portal of KARVY Aadhaar linking. One will be required to fill in the details like PAN number. One can provide them with personal details with full assurance, confidence and no hesitation. Then, once the person is done with submission of the details, an OTP of some digits will be sent to the registered mobile number.
STEP 2: The next step is another vital step, in this step one is required to authorize KARVY for accessing the submitters Aadhaar details. The details will be used to link Aadhaar with Mutual Fund Folios online instantly after the verification. So, one needs to submit the Aadhaar number and then finally click on Submit tab command button.
STEP 3: KARVY is a secured platform. For the proof of this thing, one will receive a confirmation mail from KARVY. It will be about confirmation and authentication.
For CAMS also there is a similar system. One can link the Aadhaar with CAMS online just the way it is done for KARVY.
Second Option – Linking Aadhaar to mutual Funds Folios through SMS facility
Other than online process, one can also link Aadhaar number to Mutual Fund Folios through simple message or SMS. The process is quite simple and self-explanatory. One needs to open the text message and then needs to type ADRLNK <PAN No><Aadhaar No>. after doing this one needs to send the message to 9212993399. It will be updated after the verification.
Third Option – The offline mode
It happens that someone is a believer of formal and traditional way and hesitates in using technology. There is also an offline method by which one can link Aadhaar details. For this, one needs to download the form and fill it. After filling the form, one needs to send it to any of the KARVY Branches, there they will approve it. After approval, they will verify the details and duly make the update.
Fourth Option – Linking Aadhaar to Mutual Fund Folios through distributors
There is provision of linking the Aadhaar to mutual fund folios through the distributors. These distributors will scan and upload the file. After verification and receiving the acknowledgment, updates will be made.