RBI grants Aadhaar Authentication Rights to Three Reporting Entities for PMLA Section 11A [Read Notification]

The RBI ( Reserve Bank of India ) has granted the authentication of Aadhar under Aadhaar Act for the purposes of section 11A of the Prevention of Money-laundering Act ( PMLA ), 2002. 

In a recent notification dated January 16, 2024, the Ministry of Finance has granted permission to select reporting entities to use Aadhaar authentication for compliance with privacy standards under the Prevention of Money-laundering Act, 2002.  Based on the above notification, the RBI has granted three reporting entities for the purpose of Aadhaar authentication under Section 11A of PMLA.

The notification states as follows:

“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 entities mentioned in the TABLE below 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:-”