Government Grants Aadhaar Authentication Permission to 7 Reporting Entities

The Ministry of Finance, Department of Revenue, Government of India, issued a crucial notification on the 8th of December, 2023, marked as S.O. 5213(E). This notification, exercised under the proviso to sub-section (1) of section 11A of the Prevention of Money-laundering Act, 2002, holds significant implications for reporting entities.

Detailed Analysis:

The notification highlights the Central Government’s satisfaction that certain reporting entities, as listed in the accompanying table, must comply with privacy and security standards established by the Aadhaar (Targeted Delivery of Financial and Other Subsides, Benefits and Services) Act, 2016. This compliance is deemed necessary and expedient, in consultation with the Unique Identification Authority of India and the Reserve Bank of India.

The reporting entities granted permission for Aadhaar authentication under the Money-laundering Act include prominent names such as AEON Credit Service India Private Limited, Appnit Technologies Private Limited, Capital Trust Limited, Poonawalla Housing Finance Limited, Poonawalla Fincorp Limited, Shri Ram Finance Corporation Pvt. Ltd., and VFS Capital Limited.

The Aadhaar authentication permission, conferred after consultations with the Unique Identification Authority of India and the Reserve Bank of India, empowers these reporting entities to perform authentication activities specifically for the purposes outlined in section 11A of the Money-laundering Act.

Conclusion:

In conclusion, the Ministry of Finance’s notification, S.O. 5213(E), marks a significant step in regulatory measures. The grant of Aadhaar authentication permission to reporting entities ensures alignment with privacy and security standards, a move essential for combating money laundering effectively. As these entities gain the authority to perform Aadhaar authentication, the financial landscape undergoes a pivotal shift, reflecting the government’s commitment to enhancing the integrity of financial systems. This development emphasizes the collaborative efforts of regulatory bodies and the government in creating a robust framework to address contemporary challenges in the financial sector. Stakeholders and reporting entities are encouraged to review and align their practices with the new guidelines to ensure seamless compliance with the evolving regulatory landscape.

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MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 8th December, 2023

S.O. 5213(E).—In exercise of the power conferred by proviso to sub-section (1) of section 11A of the Prevention of Money-laundering Act, 2002 (15 of 2003) (hereinafter referred to as the Money-laundering Act), the Central Government being satisfied that the reporting entities mentioned in the TABLE below shall comply with the standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsides, Benefits and Services) Act, 2016 (18 of 2016) (hereinafter referred to as the Aadhaar Act), and it is necessary and expedient to do so, after consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar Act and the appropriate regulator, namely, the Reserve Bank of India, hereby permits the said reporting entities to perform authentication under the Aadhaar Act for the purposes of section 11A of the Money- laundering Act, namely:-

TABLE 

[F. No. P-12011/11/2021-ES Cell-DOR-Part(1)]

MANOJ KUMAR SINGH, Director (Headquarter)