The Ministry of Finance has granted permission to seven reporting entities to carry out Aadhaar authentication under the provisions of the Prevention of Money-laundering Act (PMLA), 2002. The notification was issued by the Department of Revenue on May 21, 2026.
The approval comes under Section 11A of the Prevention of Money-laundering Act, 2002, which allows the Central Government to authorise reporting entities to perform Aadhaar-based authentication after ensuring adequate privacy and security safeguards.
According to the notification, the government arrived at this decision after consultation with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI). The Centre expressed satisfaction that the notified entities would comply with the privacy and security standards prescribed under the Aadhaar Act, 2016.
Which Companies Have Been Authorised?
The notification includes the following seven reporting entities that are now permitted to carry out Aadhaar authentication for compliance purposes under PMLA:
- 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
With this approval, these reporting entities can now use Aadhaar-based authentication mechanisms to verify customer identity in accordance with anti-money laundering regulations. The move is expected to improve the efficiency of Know Your Customer (KYC) procedures, reduce onboarding friction, and strengthen fraud prevention measures.
Aadhaar authentication enables institutions to digitally validate customer identities while maintaining regulatory safeguards around data privacy and security. The government has clarified that only entities meeting prescribed standards are granted such permission.
Official copy of the notification is as follows
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