PFMS Users Can Now Authenticate Using PAN or Bank Account Under Revised Aadhaar Rules

In a significant move aimed at improving user convenience and expanding digital access to government financial services, the Ministry of Finance, Department of Expenditure, has issued a corrigendum to its earlier notification governing Aadhaar authentication for the Public Financial Management System (PFMS).

The corrigendum broadens the authentication mechanism by allowing users to verify their identity using either their registered Permanent Account Number (PAN) or bank account number, along with a One-Time Password (OTP).

The amendment has been issued under Section 4(4)(b)(ii) of the Aadhaar Act, 2016, read with the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020, as amended in 2025. It modifies the Government’s earlier notification G.S.R. 859(E) dated 21 November 2025.

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Key Changes Introduced

The corrigendum makes two important modifications to the original notification.

First, it replaces the expression “PFMS Mobile Application” with “PFMS Web and Mobile Applications.” This clarification extends the Aadhaar-based authentication framework to both the web portal and mobile platform of PFMS, ensuring that users accessing the system through either medium can avail the authentication facility.

Second, and more significantly, the authentication process has been expanded. Under the earlier framework, users could authenticate themselves only by entering their bank account number, followed by an OTP sent to the registered mobile number linked with that bank account.

Following the amendment, users can now authenticate themselves using either:

their bank account number, or
their registered PAN,

along with an OTP sent to the mobile number linked to the respective bank account or registered PAN.

Greater Flexibility for PFMS Users

The revised authentication framework provides an additional identification option for individuals using PFMS services. PAN-based authentication is expected to benefit users who may find bank account-based verification inconvenient or where PAN-linked mobile verification offers a smoother authentication experience.

By introducing an alternative verification method while retaining OTP-based validation, the Government seeks to enhance accessibility without compromising security.

Impact on Public Financial Management System

PFMS is the Government of India’s flagship platform for managing public funds, processing payments, tracking expenditure and implementing Direct Benefit Transfer (DBT) and other government financial schemes. Since the platform is extensively used by government departments, agencies, beneficiaries and other stakeholders, expanding authentication options is expected to improve user experience and facilitate smoother digital transactions.

The inclusion of both web and mobile applications also reflects the Government’s continued emphasis on providing seamless digital access across multiple platforms.

Part of Broader Aadhaar Good Governance Reforms

The corrigendum aligns with the broader policy objective of promoting Aadhaar-enabled digital governance under the Aadhaar Authentication for Good Governance Rules, 2020, which were substantially amended in 2025 to widen the scope of Aadhaar authentication for public interest services. The amendments were intended to promote ease of living, improve service delivery and enable trusted digital transactions across both government and approved non-government entities.

Effective Immediately

As a corrigendum to the earlier notification, the changes take effect as part of the existing Aadhaar authentication framework applicable to PFMS. The notification has been issued by D. Anandan, Additional Secretary, Department of Expenditure, Ministry of Finance.

The revised framework is expected to make PFMS authentication more user-friendly by offering an additional PAN-based verification route while continuing to maintain secure OTP-based authentication for users accessing government financial services.