Notification S.O. 2669(E). dated 27.05.2026
The Ministry of Finance has issued notifications authorising specified market intermediaries to undertake Aadhaar authentication for customer verification and Know Your Customer (KYC) purposes under the Prevention of Money-laundering Act, 2002 (PMLA).
The authorisation has been granted after consultation with the Unique Identification Authority of India (UIDAI) and the Securities and Exchange Board of India (SEBI).
1. Entities Permitted to Use Aadhaar Authentication
The following entities have been authorised to use Aadhaar authentication for customer verification and KYC purposes:
- Groww Mutual Fund
- ICICI Securities
- Upstox
- Cybrilla Technologies
- Aaritya Broking
These entities may undertake Aadhaar-based authentication in accordance with applicable legal and regulatory requirements.
2. Aadhaar Authentication for Customer Verification and KYC
The notification permits the authorised entities to use Aadhaar authentication for:
- Customer verification
- Know Your Customer (KYC) compliance
- Identity verification for anti-money laundering compliance
The measure is intended to facilitate faster, secure and efficient onboarding and customer due diligence processes.
3. Permission Granted Under PMLA Framework
The authorisation has been granted under the framework of the Prevention of Money-laundering Act, 2002, enabling specified reporting entities to undertake Aadhaar authentication for compliance-related purposes.
The facility is linked to customer identification and due diligence obligations under the anti-money laundering regime.
4. Consultation With UIDAI and SEBI
The Government has clarified that the authorisation was granted after consultation with:
- The Unique Identification Authority of India (UIDAI); and
- The Securities and Exchange Board of India (SEBI)
The consultation process is intended to ensure regulatory coordination and adherence to applicable safeguards.
5. Compliance With Privacy and Security Standards
Before granting approval, the Government confirmed compliance with prescribed Aadhaar privacy, security and data protection standards.
The authorised entities are therefore required to maintain safeguards relating to secure handling, processing and use of Aadhaar-related information.
6. Objective of the Notification
The notification aims to strengthen KYC efficiency, improve customer onboarding and facilitate compliance under the anti-money laundering framework through secure Aadhaar-based authentication.
The move is expected to reduce friction in customer verification processes while ensuring privacy, security and regulatory compliance safeguards are maintained.
Click Here To Read The Full Notification
The post Finance Ministry Allows Aadhaar KYC for Groww | ICICI Securities | Upstox appeared first on Taxmann Blog.
