The Finance Ministry has granted authorization to six newly established private finance companies, enabling them to conduct authentication procedures under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and the Prevention of Money Laundering Act, 2002.
The decision was taken after consulting with Unique Identification Authority of India ( UIDAI ) and the regulator Reserve Bank of India ( RBI ) for the purposes of Section 11A of the Money Laundering Act.
Through official gazette notification number S.O. 180(E) dated January 16, 2024, the ministry has officially communicated this decision. The government arrived at this conclusion following consultations with both UIDAI and RBI, expressing contentment with the performance of the six finance companies.
The following are the 6 Finance Companies:
This move extends the scope of these finance entities to utilise Aadhaar-based authentication for verifying the identity of individuals, facilitating seamless and secure access to financial services.
Additionally, the authorization empowers these companies to play a crucial role in the prevention of money laundering activities, aligning with the legal framework in place to combat financial crimes.
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