Ministry of Finance Informs Five NBFCs to Conduct Aadhaar-Based Authentication Under PMLA
Ministry of Finance Informs Five NBFCs to Conduct Aadhaar-Based Authentication Under PMLA
In reference to the official notification released on May 5, 2025, the Department of Revenue, Ministry of Finance, has allotted permission to five Non-Banking Financial Companies (NBFCs) to use Aadhaar authentication services under Section 11A of the Prevention of Money-laundering Act, 2002 (PMLA). These firms are as follows:
- Oxyzo Financial Services Limited
- Berar Finance Limited
- Finkurve Financial Services Limited
- Tata Capital Limited
- BOBCARD Limited
The decision was taken when the Ministry of Finance showed its satisfaction that these authorities obey the privacy and security standards directed under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. The notification was released after a deep discussion with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI).
The motive behind taking this move is to strengthen anti-money laundering (AML) measures by making the customer identification mechanisms more smooth and secure via Aadhaar-based Know Your Customer (KYC) processes.
By Aadhaar authentication, these financial entities can achieve smoother onboarding of new clients, enforce rules more effectively, and check identity fraud. This also fits the government’s wider goals of utilising digital technologies to improve governance and facilitate greater access to financial services.
This notification, file number F. No. P-12011/11/2021-ES Cell-DOR-Part(1) stresses the government’s desire to utilise technology to make rule-following better across India’s financial space.