The Ministry of Finance has allowed 23 private insurance companies and state-owned Life Insurance Company to carry out Aadhaar-based authentication under Section 11A of the Prevention of Money Laundering Act, 2002 (PMLA). This means that these 24 companies can ask their clients for their Aadhaar details, something they could not do earlier. However, the clients retain their choice to furnish another form of identification instead of Aadhaar under Section 11A. Live Law first tweeted about it. What is Section 11A of the PMLA? The government had implemented Section 11A of the PMLA on July 25, 2019, through which every reporting entity (that is, a bank, a financial institution, intermediary or a person carrying on a designated business or profession) had to verify the identity of its clients using Aadhaar, a passport or any other officially valid document. An entity could use Aadhaar authentication only if it was notified by the central government. With the Ministry of Finance’s notification, these 24 companies can ask their clients for their Aadhaar details. As per Section 11A(3), the mode of identification is the client’s choice and “no client or beneficial owner shall be denied services for not having an Aadhaar number”. How was the decision taken? The decision was taken in consultation with the Unique Identification Authority of India (UIDAI) and Insurance Regulatory and Development Authority of India (IRDAI) as per the notification. As per the procedure for processing applications under Section 11A, set forth in a circular by the Department of Revenue on…
News
24 insurance companies can now ask customers for Aadhaar under Prevention of Money Laundering Act
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...