The Ministry of Finance, through Notification S.O. 4240(E) dated 26th September 2024, has authorized HDB Financial Services Limited to perform Aadhaar authentication as per Section 11A of the Prevention of Money-laundering Act, 2002. This decision was made after consultation with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI), ensuring that HDB Financial Services complies with privacy and security standards under the Aadhaar Act, 2016. The authorization allows the financial entity to use Aadhaar-based authentication for identity verification and regulatory compliance. This move aims to streamline anti-money laundering processes while maintaining secure handling of sensitive data. The notification emphasizes the government’s commitment to enhancing financial services’ compliance with both the Money-laundering Act and Aadhaar Act regulations. The reporting entity must ensure strict adherence to the privacy and security standards as outlined in the Aadhaar Act during the authentication process.
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 26th September, 2024
S.O. 4240(E).— In exercise of the powers conferred by 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 on being satisfied that the reporting entity, namely, HDB Financial Services Limited 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 entity to perform authentication under the Aadhaar Act for the purposes of section 11A of the Money laundering Act.
[F. No. P-12011/11/2021-ES Cell-DOR-Part(1)]
RIMJHIM PANDEY, Under Secy
