What is an Aadhaar Card?
Aadhaar Card is a 12-digit unique identification number issued to Indian residents by the Central government. It is assigned and managed by the Unique Identification Authority of India (UIDAI).
Aadhar card is primarily an identification document issued by the UIDAI after it records and verifies every resident Indian citizen’s details including biometric as well as demographic data.
Where is the Aadhaar card required?
Here are a few transactions where you need an Aadhar Card:
Mutual Fund Investment
Application for Passport
1. Banking Transactions
These days you require Aadhar number to conduct a variety of banking transactions. Whether it’s account opening or financial transactions above Rs 50000; Aadhaar number serves as absolute proof. For new account opening, Aadhar is mandatory.
You will realize that one Aadhaar card fulfils various requirements like ID proof and Address proof (if the address is updated).
Recently the government made it mandatory for the existing account holders to provide their Aadhar number to the bank until December 2017. After the deadline, their accounts will stand invalid.
2. Digital Locker
Digi Locker is a cloud-based platform given by the government to its citizens. You can upload your scanned documents, authenticate it using E-sign and then store it safely here. Besides, you can get a soft copy of CBSE/ICSE mark sheets, driving license and other documents issued by the authorities directly into this locker. Even verification of documents becomes a cakewalk.
Initially, you may open your account using your mobile phone number. To receive the best out of your Digi Locker Account, you need to link your Aadhar number. You may use the basic features without Aadhar linking. But to unlock the advanced features like “Issued Documents”, you need to link your account with Aadhar.
3. Provident Fund
Recently, EPFO launched the facility of online withdrawal of PF amount. In that, you can submit PF claim application online without the interference of employer. Additionally, you can track your PF balance and transfer PF amount on a job change. You may even combine multiple PF accounts and print PF account statement.
4. Investing in Mutual Funds
Earlier, only those investors could invest in mutual funds whose PAN was KYC compliant. There was some obstacle in the investing process. But now with the advent of Aadhar card, SEBI has simplified the process.
You can easily go ahead with MF investing if you have a PAN and Aadhar number. It will be done via e-KYC. E-KYC is a paperless process to authenticate your identity.
After you submit PAN, e-mail, mobile number & Aadhaar number; the MF investing platform will initiate the e-KYC process. You will receive OTP on your phone. Upon entering the OTP, the e-KYC form will get auto-populated with your UIDAI data. UIDAI will verify your credentials. After that, within 15 minutes you will be ready to invest in mutual funds.
5. Passport Application
Aadhaar card benefits you much more than you may imagine. If you are applying for a passport, Aadhaar card can help you to postpone the police verification step. The Ministry of External Affairs will use your Aadhaar card to verify your criminal records.
It will coordinate with the National Crime Records Bureau using your Aadhaar number. Hence, you will get the passport within 10 days; the only condition being that you get the police verification done once you receive the passport.