How to Link Aadhaar Card to Different Documents?

Bank Account

Linking Aadhar to Bank Account will result in various benefits that are mentioned below:

Direct Benefit Transfers (DBT): Government subsidies, pensions, and scholarships are credited directly to your account, reducing delays and paperwork.

Enhanced Security: The Aadhaar linkage adds a layer of biometric authentication, safeguarding your account against unauthorized access and fraud.

Simplified KYC Process: Aadhaar-linked accounts facilitate faster and more efficient Know Your Customer (KYC) verification, saving time and effort.

Reduced Fraud: Enhances financial security by minimizing fraudulent activities.

Seamless Tax Refunds: Simplifies the process of receiving income tax refunds.

Widespread Adoption: As of recent data, a significant majority of bank accounts have been linked to Aadhaar.

Ownership Verification: Ensures accurate identification of account holders, preventing unauthorized fund transfers.

Curbing Shell Companies: Deters operations of shell companies and transactions involving unaccounted funds.

Fraud Detection: Facilitates the tracing of fraudulent activities through mismatched Aadhaar and bank account information.

Linking method: Aadhar can be linked to the bank account via internet banking, ATM, phone banking, mobile banking, and by visiting the branch.

Mutual Funds

The details about linking Aadhar to mutual funds are mentioned below:

Regulatory Compliance: Ensures adherence to government mandates, preventing potential deactivation of your mutual fund accounts.

Enhanced Transparency: Reduces the risk of fund misuse and promotes legitimate investment activities.

Simplified KYC Process: Facilitates faster and more efficient Know Your Customer (KYC) verification, saving time and effort.

Streamlined Portfolio Management: Consolidates all your mutual fund investments, making it easier to monitor and manage your portfolio.

Prevention of Fraudulent Activities: Enhances security by preventing unauthorized transactions and curbing the operation of shell companies dealing in unaccounted funds.

PAN CARD

Linking of Aadhar to PAN (Permanent Account Number) is a must as per provisions of Section 139 AA of the Income Tax Act 1961 and non-linking will lead to inoperative PAN which will lead to various financial complications, such as:

Higher TDS/TCS Rates: Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be applied at elevated rates for individuals with inoperative PANs.

Invalidity of Form 15G/H: Submission of Form 15G or 15H is not permitted with an inoperative PAN, rendering any previously submitted forms ineffective until the PAN is reactivated.

Restrictions on Demat Accounts: As per NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) guidelines, opening and processing transactions in Demat accounts are restricted for inoperative PANs.

Prohibition on Certain Investments:

RBI Bonds: Investments in Reserve Bank of India Bonds are not allowed for individuals with inoperative PANs. o

Sovereign Gold Bonds: Similarly, investments in Sovereign Gold Bonds are prohibited for those with inoperative PANs.

SEBI Restrictions: According to Securities and Exchange Board of India (SEBI) guidelines, opening and processing transactions in Investment Service Accounts (ISA) are restricted for inoperative PANs.

Insurance Policies

IRDAI (Insurance Regulatory Development Authority of India) has mandated Aadhar linking to life, non-life, and health insurance under the prevention of Money laundering (maintenance of Records) Second Amendment rules 2017. The purpose of linking Aadhar to insurance policies are given below:

1. Prevents money laundering and malpractices.
2. Easy and seamless claim settlement as the claim amount gets credited to the bank account directly.
3. Easy access to all financial services as PAN and bank account are already linked.
4. Ensures hassle-free and simple insurance administration.

Employees Provident Fund

31 December 2021 and non-linking will not allow the employer or establishment to deposit monthly contribution.

1. Simplifies the verification process for EPF (Employee Provident Fund) account.
2. Ensures security of EPF account by biometric authentication.
3. Faster claim process thereby speeding up the disbursal of claim amount.
4. Improves overall account management by streamlining the contribution and withdrawal process.

Note: Know more about Link Aadhaar Card with EPF/UAN Account

Small Saving Schemes

According to a notification by the Ministry of Finance, individuals without an Aadhaar number must enroll for Aadhaar to invest in small savings schemes. At the time of opening an account, they should provide proof of Aadhaar enrollment. The account holder is then required to submit their Aadhaar number to the Account Office within six months from the date of account opening.

Scholarship Account

It is not mandatory to link scholarship account to Aadhar but to link Aadhar you need to have a bank account number which is linked to Aadhaar, and this makes the receipt of Direct Benefit Transfer (DBT) easier.

Ration Card

To get uninterrupted supply of food grains, consumers need to link Aadhar to their ration cards by completing e-KYC at any Ration Shop (FPS), any inspector office of Food and Supplies, Bangla Sahayata Kendra (BSK), or by visiting the official website of the Department of Food and Supplies of specific states.

Eliminates Duplicate and Ghost Ration Cards: Ensures only eligible beneficiaries receive subsidies, thereby reducing leakage and promoting transparency.

Targets Welfare Delivery: Directs government benefits to intended recipients, minimizing intermediaries and fraud.

Streamlines Verification: Simplifies and authenticates beneficiary identification, reducing the risk of impersonation.

Facilitates Subsidized Food Access: Simplifies procurement of essential commodities through the Public Distribution System (PDS).

Enhances Resource Management: Provides accurate beneficiary data, aiding effective policy formulation and subsidy allocation.

Promotes Financial Inclusion: Enables direct benefit transfers (DBT) to bank accounts, reducing cash dependency and ensuring timely fund access.

Mobile Number

Mobile number should be linked to Aadhar to avail yourself of various Aadhar related services, such as demographic data update, where OTP (One Time Password) verification is done, and the OTP is sent to the Aadhar linked mobile number only.

IRCTC Account

Users can link their IRCTC account to Aadhar to avail themselves of the facility of booking 24 tickets in a month. While the users can book up to 12 tickets a month without linking Aadhar.

Driving Licence

Government has also mandated linking Aadhar to driving license that helps in easy verification, reduces fraud, and online access to RTO services, such as license renewal, permit application and many more.

Pension Account

Individuals need to visit the online portal of protean to complete the Aadhar linking process. Linking pension account to Aadhar serves various purposes, such as:

1. Linking Aadhar with pension account makes it easier to open NPS (National Pension Scheme) account online.
2. To track financial transactions and receive exemptions, the government has issued certain guidelines regarding linking their pension account to Aadhar.
3. Ensures zero paperwork and real-time verification through e-KYC and Aadhar OTP verification.

LPG Connection

To avail of LPG government subsidies and benefits, it is mandatory to link Aadhar to LPG gas connection thereby helping in identifying the consumer and prevents the change of false claims. Aadhar linking can be done by both online mode by visiting the official website of the provider or by offline mode via Post Office or distributor’s office.