Bajaj Finance, Shriram City Union Finance, Shriram Transport Finance, Tata Capital Housing Finance, and Tata Financial Services are among the 38 non-banking finance companies and payment providers permitted by the government for Aadhaar Authentication License - KYC User Agency (KUA) License or sub-KUA License.
The Department of Revenue in the Finance Ministry has recently notified these companies.
“…the Central Government on being satisfied that the reporting entities mentioned … comply with the standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016)(hereinafter referred to as the Aadhaar Act), and it is necessary and expedient to do so, and 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…,” it said.
Others include PayPoint India Network, Aavas Financiers, Arohan Financial Services, EBIX Payments Services, Early Salary Services and Ambit Finvest.
Sources said as many as 100 more companies are likely to be authorised soon.
“This is a positive move. There are more companies in the pipeline, which should be allowed soon,” said a person familiar with the development.
The Reserve Bank of India had in September 2021 said entities other than banking companies might, by notification of the Central Government, be permitted to carry out authentication of a client’s Aadhaar number using the e-KYC facility provided by the Unique Identification Authority of India (UIDAI).
“Such notification shall be issued only after consultation with UIDAI and the appropriate regulator,” it had said.
NBFCs, Payment System Providers and Payment System Participants that wished to get an Aadhaar Authentication License - KUA License or sub-KUA License were invited to submit their applications to the RBI for onward submission to UIDAI.
Players had welcomed the announcement and said it would help digitisation and improve financial inclusion.