Process to Link Mutual Fund Accounts to Aadhaar Number

Process to Link Mutual Fund Accounts to Aadhaar Number

31st December is the last date for linking Aadhaar card with PAN – but for everyone else, the Finance Ministry will decide today how long the extended period will be. You have to link your Aadhaar card to your PAN. If you fail to do so even within the extended deadline then you PAN card will become invalid in future. This is why you must link it immediately as per the rules given in the Prevention of Money Laundering Act (PMLA), 2017 by the Income Tax Department.

Linking via Registrar and Transfer (R&T) Agents

The R&T agents are those trusts that maintain the records of your transactions in mutual fund dealing. They specialize in maintaining the records of the investors itself. They also act as intermediaries who take care of the processing of mutual funds in the background. So all kinds of processing like the financial processing, buying and selling, switching the units, etc – take place through them. Even the non-financial transaction records are kept through them.

How to link Aadhaar to PAN card at home via CAMS?

To link them there is an online facility provided by the Computer Age Management Services. You can link your Aadhaar card on this portal in these steps –

  1. First of all go to the CAMS website here – From here, go to the top panel – where ‘Investor Services’ is written. Beside that there will be an option called ‘Link your Aadhaar’ – click on it.
  2. You can also skip the first step and go directly on this page Here you will find some fields to full up and submit.
  3. Enter your Email ID, your PAN number, Aadhaar number and mobile number on this page and submit it.
  4. As soon as you enter your PAN details, you may find that the page automatically generates the names of the fund houses that you have. You may find that the names of a few mutual fund units are missing. Therefore you have to do this with other R&T agents too.
  5. Some of the names that are there include ICICI Prudential, HDFC Mutual Fund, UTI Mutual Fund, etc.
  6. Click on the checkboxes which appear on the screen. After that click on “Submit”. This will generate a One Time Password.
  7. Check your mobile for the SMS and enter the OTP on the next page. You will get an acknowledgement message on the screen that your linking is successful. UIDAI will also generate a success message on screen.

What happens when you link it this way?

You are basically authorizing the R&T platform to seed your Aadhaar number with the accounts that you maintain. When you perform the linking on this platform, all the accounts that are maintained with the asset management companies, are notified.

Also, you are giving the authority to the agent for sharing the Aadhaar information with the Central KYC Registry and other KYC registries. This is your consent that shall remain valid for all the new and existing folios created on CAMS.

Rules of PMLA

  • According to the PMLA Rules, the client (financial institutions) will have to enroll for Aadhaar number and they will have to report the Aadhaar number and the Pan form no. 60.
  • If the Aadhaar number is not yet assigned to the client, it shall be up to him to provide proof of application of Aadhaar (enrollment number). On the other hand, if the PAN has not yet been submitted, then a certified copy of ‘officially valid document’ will have to be submitted.
  • If the client is not eligible for Aadhaar card enrollment and he or she is an individual, then the sub-rule (1) asks him to submit the PN (or Form No. 60) to the reporting entity as per the Income tax rules of 1962.
  • If you do not submit the PAN, then you, the client, will have to submit a certified copy of an “officially valid document” which will contain all the details of your identity including your address.
  • You must also then furnish one recent photograph and some similar documents which will include the details of your nature of business or your financial status.

In case you have mutual fund agents which are not enlisted under CAMS, then with for a few days for other portals to launch with those details.

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