The notification issued by the Ministry of Finance allows NABARD to voluntarily perform Aadhaar authentication for residents applying for agricultural loans through their portal. The purpose of this voluntary authentication is to streamline and expedite the loan application process, ensuring efficient delivery of financial services to the agricultural sector.
NABARD, while performing Aadhaar authentication, is required to comply with all relevant provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, along with the rules, regulations, and directions issued by the Unique Identification Authority of India (UIDAI). This ensures the proper handling and protection of residents’ Aadhaar data during the authentication process.
It is important to note that this voluntary Aadhaar authentication is specific to NABARD and the portal designated for agricultural loan applications. Other financial institutions and sectors may have separate guidelines and regulations regarding Aadhaar authentication.
MINISTRY OF FINANCE
(Department of Financial Services)
Notification
New Delhi, the 14th June, 2023
S.O. 2662(E).—In pursuance of sub-clause (ii) of clause (b) of sub-section (4) of section 4 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016), read with rule 5 of the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020, the Department of Financial Services, Ministry of Finance, having been authorised by the Central Government, hereby notifies that the National Bank for Agriculture and Rural Development is allowed to perform Aadhaar authentication on a voluntary basis, for authentication of residents, using Yes/No or/and e-KYC authentication facility for applying for agricultural loan from banks through the portal of the National Bank for Agriculture and Rural Development.
2. The National Bank for Agriculture and Rural Development shall, for the said purpose comply with all relevant provisions of the said Act, the rules and regulations made thereunder and the directions issued by the Unique Identification Authority of India in this behalf.
3. This notification shall come into force on the date of its publication in the Official Gazette.
[F. No. 8/5/2023-AC]
Dr. M. P. TANGIRALA, Addl. Secy.
