FM Authorises Aadhaar Authentication for Central KYC Registry to Enhance Transparency:

FM Authorises Aadhaar Authentication for Central KYC Registry to Enhance Transparency The Department of Financial Services under the Ministry of Finance recently issued a notification on November 6, 2025 regarding permission to use the Aadhaar number during authentication. The use of the Aadhaar number is made to help individuals to receive benefits and services in a convenient and simple manner. It also removes the need for a multiplicity of documents to make identity and simplifies the overall processes and it promotes transparency and efficiency.

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While, the Ministry of Electronics and Information Technology, Government of India after conversation with the Unique identification Authority of India had declared through its letter dated May 29, 2025, read with another letter dated June 9, 2025 to Ministry of Finance, Department of Financial Services, Government of India for the purposes mentioned under sub-rule (1) of rule 3 of the Aadhaar Authentication for Good Governance Rules, 2020 that the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, performing the functions of the Central KYC Records Registry may be permitted to perform authentication and the use of Aadhaar number during authentication for establishing the identity of Aadhaar number holder and notify the sane under 5 of the said rules read with subclause (ii) of clause (b) of sub-section (4) section 4 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18). The Aadhaar verification will be used on digital platforms to promote good governance. This will be done as allowed under rule 3(1) of the mentioned rules.

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Doing Aadhaar verification for this purpose is voluntary (not compulsory). The agency can use Aadhaar verification only to check the basic details of Aadhaar holders that come from organisations regulated by:

• Reserve Bank of India (RBI),
• Securities and Exchange Board of India (SEBI),
• Insurance Regulatory and Development Authority of India (IRDAI),
• International Financial Services Centres Authority (IFSCA), and
• Pension Fund Regulatory and Development Authority (PFRDA).

This verification can be done through a simple Yes/No option or through the eKYC (electronic Know Your Customer) facility. For complete information refer to the official notification-