The Reserve Bank of India vide its notification dated 13th September 2021 has directed the NBFCs (Non-Banking Financial Companies), payment system providers and payment system participants to submit applications for obtaining Aadhaar e-KYC authentication licence.
In terms of Section 11A of the Prevention of Money Laundering Act (PMLA), 2002, the government through a notification may permit entities other than banking firms to authenticate client’s Aadhaar number using the e-KYC facility provided by the Unique Identification Authority of India (UIDAI). However, the notification shall be issued only after consulting with the UIDAI and the appropriate regulator.
Further, a detailed procedure for processing of applications under the aforementioned section for the use of Aadhaar authentication services by entities other than banking companies has been provided by the Department of Revenue, Ministry of Finance in its earlier notification dated 9th May, 2019.
Accordingly, NBFCs, payment system providers, and payment system participants desirous of obtaining Aadhaar Authentication License -KYC User Agency (KUA) License or sub-KUA License (to perform authentication through a KUA), issued by the UIDAI, may submit their application to this Department for onward submission to UIDAI.