India: Payments Council Welcomes Circular on Aadhaar-Based E-Authentication for Non-Banks

On May 17, 2019, the Payments Council of India (PCI) welcomed the circular issued by the Ministry of Finance on how reporting entitites other than banks can now authenticate a client's Aadhaar number with e-KYC authentication.

Under Section 11A of the Prevention of Money Laundering Act 2002 and the Aadhaar Ordinance, only a reporting entity that is a banking company was permitted to use e-KYC authentication (if a customer voluntarily provided the Aadhaar number). However, the Ministry of Finance has announced that reporting entities other than banks can use e-KYC authentication to carry out authentication of a client's Aadhaar number.

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