Aadhaar Isn’t Compulsory, But It Sure is Useful for your Financial Planning

Sep 30, 2018 | 11 months ago | Read Time: 3 minutes | By iKnowledge Team

With the Supreme Court extending the Aadhaar linking deadline infinitely, you don’t have to update Aadhaar to every other government document and financial service. The question however is, should you?

Aadhaar Linking for Financial Planning - Aegon Life

Aadhaar is the new age identity card for Indian citizens. The USP of your Aadhaar is that it contains your biometric data i.e. your thumb impression and retina identity. What makes it unique as compared to voter ID cards and PAN cards is that there is no age limit to have an Aadhaar card. These features have made Aadhaar much more efficient than other identity cards and are very difficult to replicate, making it a handy tool against identity theft.

So, when it comes to financial planning, here are reasons why you should update your Aadhaar card.

Key Features

  • Age is no bar to enrol for Aadhaar if you are an Indian citizen. You may enrol your infant child as well, however you must update Aadhaar status of your child when he/she turns 5 with the fingerprints and retina scan.
  • You may enrol for Aadhaar even if you do not have valid documents, if you have someone in the family linked to your Aadhaar who does.
  • You may download a digital copy of your Aadhaar if you remember to delete the local copy of your Aadhaar card if downloaded on any public machine to avoid misuse.
  • UIDAI, available as uidai.gov.in online, enables you to enrol for Aadhaar, update Aadhaar, download a digital copy and get Aadhaar number on your registered mobile number. Most importantly, you can lock/unlock your biometrics-related information associated with the Aadhaar card.

Given the concerns raised over the people’s right to privacy, the apex court’s decision to extend the linking timeline indefinitely comes as a relief to most.  Earlier, the deadline to update Aadhaar was 31st March 2018 but that date has since been pushed by the Supreme Court with no clear answer about the next one. This decision is taken by SC considering recent privacy and data security issues. Despite the situation, updating Aadhaar to your bank account and mobile number still has its merits, especially when it makes your financial life easier.

e-Verifying your ITRs.

There are many ways to verify your income tax return (ITR). But e-verification through your Aadhaar number is much more convenient. Linking your Aadhaar with your PAN is a prerequisite, without which you can’t proceed for ITR verification. 30th June 2018 is the current deadline for this. ITR verification is faster when your mobile number is registered with UIDAI.

e-KYC with Aadhaar

KYC documents include Voter ID cards, PAN Cards, Driving License, Passport etc. But carrying them around is riskier than simply providing your Aadhaar UID. One more benefit of e-KYC with Aadhaar is that in-person-verification or IPV is as simple as an OTP sent to your registered number and that’s it.

Timely PF payments

The documentation process for pensioners to start their pension after retirement is cumbersome and time-consuming. However, when you update Aadhaar to your Bank account and EPF account the process becomes much more streamlined and all the simpler. The Employees’ Provident Fund Organization (EPFO) has introduced several measures to reduce the claims settlement period to 5 days. To authenticate the claim process, an OTP is sent to the registered mobile number with Aadhaar database. Once this OTP is entered, submit the ‘Composite claim form (Aadhaar)’ and the withdrawal process will be initiated.

However, to get the benefits from your Aadhaar card, registering your mobile phone number with the UIDAI database is a must. This is not mandatory yet but doing so can make your life a bit easier.

Registering your mobile number and bank account gives you hassle-free access to various online services. Know about the different indian government schemes for women here.

IA/Sep 2018/4416

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