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Govt Allows Aadhaar-Based Identity Verification for PFMS Mobile App Users on Voluntary Basis [Read Notification]

The Finance Ministry has notified that Aadhaar-based identity verification will now be allowed on a voluntary basis for users of the PFMS Mobile Application.

Kavi Priya
Aadhaar based identity verification - taxscan
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The Ministry of Finance (Department of Expenditure) issued Notification No. G.S.R. 859(E) dated 20 November 2025, announcing that Aadhaar-based identity verification will now be permitted for users of the Public Financial Management System (PFMS) Mobile Application. The notification was published in the Extraordinary Gazette of India on 21 November 2025.

According to the notification, Aadhaar authentication may be used to identify beneficiaries, vendors and government employees who receive payments through PFMS. It may also be used to help users access their payment details and information about government schemes within the PFMS mobile application.

The Ministry noted that Aadhaar helps people receive subsidies, benefits and services in a convenient manner and reduces the need for multiple identity documents.

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The Ministry of Electronics and InformationTechnology had earlier written to the PFMS Division of the Office of the Controller General of Accounts on 17 November 2025 permitting Aadhaar authentication for good governance purposes as defined under the Aadhaar Authentication for Good Governance Rules 2020.

The notification stresses that Aadhaar authentication will be entirely voluntary. The PFMS agency must obtain the consent of the Aadhaar number holder before initiating authentication. It must also inform users about alternative methods of identification. The agency cannot deny any service to a person who refuses to undergo Aadhaar authentication or is unable to complete the process.

For example, the notification states that users can instead verify their identity by providing their bank account number and entering the one-time password sent to their registered mobile number.

This ensures that people who do not wish to use Aadhaar or who face difficulty using Aadhaar can still access PFMS services without any restriction.

The notification clarifies that Aadhaar authentication will be carried out only for PFMS Mobile Application services and not for any unrelated purpose. The notification comes into effect from the date of its publication in the official Gazette.

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Notification No.G.S.R. 859(E)
Date of Judgement :  20 November 2025

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