The Ministry of Finance has notified the use of Aadhaar-based authentication for the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), which functions as the Central KYC Records Registry (CKYCR).
The notification, issued under Rule 5 of the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020, allows CERSAI to authenticate individuals’ identities using their Aadhaar numbers on a voluntary basis. This initiative follows consultations between the Ministry of Electronics and Information Technology (MeitY) and the Unique Identification Authority of India (UIDAI), as referenced in UIDAI’s communication dated June 9, 2025.
According to the notification, the decision aims to make delivery of financial and related services more convenient and seamless by eliminating the multiplicity of identity documents; simplifying KYC processes through digital authentication; and enhancing transparency, efficiency, and good governance in financial systems.
CERSAI, acting as the central KYC repository, will be allowed to perform Aadhaar authentication to verify demographic details of Aadhaar number holders obtained from financial entities regulated by key authorities including 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), Pension Fund Regulatory and Development Authority (PFRDA).
The authentication process may be carried out using either the Yes/No verification option or the eKYC authentication facility available under the Prevention of Money Laundering Act, 2002.
The Ministry clarified that Aadhaar authentication will remain voluntary, not mandatory.
CERSAI is required to obtain explicit consent from the Aadhaar number holder before authentication; inform users of alternate means of identification available to them; and not deny any service if an individual refuses or is unable to undergo Aadhaar authentication.
The approved alternate identity documents include Passport, Driving Licence, Voter ID (issued by the Election Commission of India), Job Card under the MGNREGA scheme, and Letter issued by the National Population Register (NPR) containing name and address details.
This notification has been issued under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, particularly Section 4(4)(b)(ii), enabling Aadhaar authentication for the prescribed good governance purposes.
Notification Details
Notification No. F. No. 32/03/2025-DRT
Date: 06/11/2025
