Finance Ministry Updates PFMS Aadhaar Notification, Expands Authentication Options for Users
The Ministry of Finance's Department of Expenditure has issued a corrigendum to its earlier notification relating to Aadhaar authentication under the Public Financial Management System (PFMS), introducing important changes aimed at improving accessibility and ease of use for beneficiaries and users.
The corrigendum, notified through G.S.R. 580(E) dated July 1, 2026, amends the Government's earlier notification G.S.R. 859(E) issued on November 21, 2025 under Section 4(4)(b)(ii) of the Aadhaar Act, 2016 and the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020.
One of the key changes is the replacement of the term "PFMS Mobile Application" with "PFMS Web and Mobile Applications." This clarification formally extends the Aadhaar-based authentication facility to both the web-based and mobile platforms of PFMS.
The corrigendum also broadens the methods available for user verification. Earlier, authentication was based on a bank account number along with a one-time password (OTP) sent to the registered mobile number linked to that bank account. Under the revised framework, users can now authenticate using either their bank account number or registered Permanent Account Number (PAN), together with an OTP sent to the mobile number linked to the respective bank account or registered PAN.
The modification is expected to provide greater flexibility for users accessing PFMS services, especially in cases where bank account-based verification may not be convenient. By incorporating PAN-based authentication, the government aims to streamline identity verification while maintaining security through OTP-based validation.
PFMS serves as the Government of India's key platform for fund management, payment processing, and financial tracking across various schemes and departments. The latest amendment is part of ongoing efforts to enhance digital governance and improve user experience in public financial management systems.
The corrigendum has been issued under the authority of D. Anandan, Additional Secretary, Department of Expenditure, Ministry of Finance.
Official copy of the notification is as follows
CAclubindia
