Finance Ministry Allows Aadhaar KYC for Groww | ICICI Securities | Upstox

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Aadhaar Authentication for KYC Under PMLA

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

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied