The Ministry of Finance has authorised seven reporting entities, including major financial services and housing finance companies, to carry out Aadhaar authentication under the Prevention of Money-laundering Act (PMLA), 2002.
In a notification issued by the Department of Revenue on May 21, 2026, the Central Government stated that these entities will be permitted to perform Aadhaar-based authentication for the purposes of Section 11A of the PMLA, after satisfying prescribed privacy and security standards under the Aadhaar Act, 2016.
The notification was issued in consultation with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI).
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Entities Granted Aadhaar Authentication Access
The following reporting entities have been authorised:
- Toyota Financial Services India Limited
- Aditya Birla Capital Limited
- NABFINS Limited
- Indostar Capital Finance Limited
- Innofin Solutions Private Limited
- LIC Housing Finance Limited
- Transaction Analysts (India) Private Limited
Aim To Strengthen KYC Compliance
The move is aimed at strengthening Know Your Customer (KYC) verification mechanisms and improving compliance with anti-money laundering regulations.
By allowing Aadhaar authentication, these entities can digitally verify customer identities more efficiently while onboarding clients and conducting financial transactions. The government noted that the entities must adhere to strict privacy and security safeguards laid down under the Aadhaar framework.
Legal Backing Under Section 11A Of PMLA
Section 11A of the Prevention of Money-laundering Act empowers the Central Government to permit reporting entities to perform Aadhaar authentication for identity verification purposes, subject to compliance with prescribed conditions.
The notification clarified that the approval was granted after the government was satisfied that the listed entities comply with privacy and security standards mandated under the Aadhaar Act.
Notification Details
Date: 21/05/2026
