The Ministry of Finance has authorized five Non-Banking Financial Companies (NBFCs) to conduct Aadhaar-based authentication under the Prevention of Money-laundering Act, 2002 (PMLA), marking another step towards strengthening digital identity verification in the financial sector.
In a notification dated May 5, 2025 (S.O. 2012(E)), the Department of Revenue permitted the following entities to use Aadhaar authentication services, in accordance with Section 11A of the PMLA:
- Oxyzo Financial Services Limited
- Berar Finance Limited
- Finkurve Financial Services Limited
- Tata Capital Limited
- BOBCARD Limited
The decision comes after the Centre expressed satisfaction that these entities comply with the privacy and security standards mandated under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. The notification was issued following consultation with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI), which serves as the appropriate regulator.
The move aims to bolster anti-money laundering (AML) measures by facilitating secure and reliable customer identification mechanisms through Aadhaar-based Know Your Customer (KYC) processes.
With Aadhaar authentication, these financial entities can streamline customer onboarding, improve compliance, and prevent identity fraud, aligning with the government’s broader digital governance and financial inclusion goals.
This notification, issued under F. No. P-12011/11/2021-ES Cell-DOR-Part(1), underscores the Centre’s push for technology-driven regulatory compliance across India’s financial landscape.
Official copy of the notification is as follows
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