The Ministry of Finance (Department of Revenue) has authorised Home First Finance Company India Limited to perform Aadhaar authentication under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The approval has been granted through Notification S.O. 3521(E) dated July 1, 2026, issued by the Central Government.
What the Notification Says
According to the notification, the Central Government, after satisfying itself that the reporting entity complies with the privacy and security standards prescribed under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, has permitted Home First Finance Company India Ltd. to undertake Aadhaar-based authentication.
The authorisation has been granted under the proviso to Section 11A(1) of the Prevention of Money-laundering Act, 2002, following consultation with:
- The Unique Identification Authority of India (UIDAI)
- The Reserve Bank of India (RBI)
Purpose of Aadhaar Authentication
The permission enables Home First Finance Company India Ltd. to use Aadhaar authentication for customer identification and verification requirements under the anti-money laundering framework.
Aadhaar-based authentication is widely used by financial institutions to facilitate:
- Faster Know Your Customer (KYC) processes
- Enhanced identity verification
- Reduced paperwork and operational delays
- Improved compliance with anti-money laundering regulations
Impact on Customers
With this authorisation, customers of Home First Finance Company India Ltd. may experience a more seamless onboarding process as Aadhaar-based verification can help accelerate loan application and account-related procedures while maintaining regulatory compliance.
The move is also expected to strengthen the company's ability to meet statutory obligations under the PMLA framework through secure and reliable digital identity verification.
Official Details
| Particulars | Details |
|---|---|
| Notification Number | S.O. 3521(E) |
| Date | July 1, 2026 |
| Issuing Authority | Ministry of Finance, Department of Revenue |
| Reporting Entity Authorised | Home First Finance Company India Limited |
| Legal Provision | Section 11A of the Prevention of Money-laundering Act, 2002 |
| Consulted Authorities | UIDAI and RBI |
Conclusion
The latest notification reflects the government's continued efforts to promote secure digital verification mechanisms within the financial sector. By allowing Home First Finance Company India Ltd. to conduct Aadhaar authentication under the PMLA framework, the government has further expanded the use of Aadhaar-enabled KYC processes while ensuring adherence to privacy, security, and regulatory standards.
Official copy of the notification is as follows
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