Ever since the government directed investors to link Aadhaar details with their mutual funds folios, many distributors have approached Cafemutual on how they can help their NRI clients link Aadhaar with their mutual fund folios. Currently, most NRIs do not have Aadhaar number.
Cafemutual spoke to a few experts and found that NRIs are exempted from Aadhaar linkage. In fact, in a notification issued last month, UIDAI has clarified that NRIs are exempted for Aadhaar enrolment. “It has been brought to notice that some of the implementing agencies are insisting the NRIs to submit or link their Aadhaar for availing the services that are directly or indirectly connected with NRI regardless of the fact they may not be entitled for Aadhaar as per the Aadhaar Act 2016,” said UIDAI.
UIDAI has also requested regulators to issue directions to financial services industry on this.
However, fund houses and distributors need to devise a mechanism to ascertain the genuineness of status of such NRIs.