Govt Authorises 7 Reporting Entities to Use Aadhaar Authentication for Customer Verification Under PMLA

The Ministry of Finance under the Department of Revenue has notified that after consultation with the Unique Identification Authority of India (UIDAI), established under sub-section (1) of section 11 of the Aadhaar Act and the Reserve Bank of India (RBI), the Central Government has permitted seven reporting entities to use Aadhaar authentication services under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016), for the customer verification purposes of section 11A of the Money-laundering Act.

The centre has asked these reporting entities to adhere to the privacy and security standards laid down under the Aadhaar Act, 2016, for the aforesaid purpose. The government has taken this step in exercise of its powers granted under sub-section (1) of section 11A of the Prevention of Money-laundering Act (PMLA), 2002 (15 of 2003), and has officially announced the same through a Notification No. S.O. 2597(E), dated May 21, 2026.

According to the notification, these reporting entities include Toyota Financial Services India Limited, Aditya Birla Capital Limited, NABFINS Limited, Indostar Capital Finance Limited, Innofin Solutions Private Limited, LIC Housing Finance Limited and Transaction Analysts (India) Private Limited.

With this approval, these entities will be able to use Aadhaar-based authentication for Know Your Customer (KYC) verification under Section 11A of the Prevention of Money-laundering Act.

Refer to the official notification for complete information.