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The Finance Ministry has allowed 29 insurance companies and nine securities firms, including the Bombay Stock Exchange (BSE) and the National Securities Depository Limited, to perform Aadhaar authentication services, the revenue department said Saturday.
The department has issued two separate notifications to allow these entities to use Aadhaar’s authentication services with the necessary standard privacy and security measures. This would help these entities to perform in real time and do e-KYC (know your customer) that would lower the cost of the transaction, an official statement said.
“This would also be beneficial for clients or investors, especially small and retail, as they do not need to submit physical documents or documents to KYC,” a finance secretary quoted Finance Secretary Ajay Bhushan Pandey as saying. Previously, he held the position of CEO of Unique Identification Authority of India (UIDAI).
The ministry has allowed these insurance and securities entities to use Aadhaar’s authentication services subject to the satisfaction of their regulatory authorities, the Insurance Regulatory Authority of India (IRDA) and the Securities and Exchange Board of India (SEBI), said.
