india

Updated: Apr 25, 2020 23:59 IST

The finance ministry has allowed 29 insurance companies and nine securities entities, including the Bombay Stock Exchange (BSE) and the National Securities Depository Limited to undertake Aadhaar authentication services, the department of revenue said on Saturday.

The department has issued two separate notifications to allow these entities to use Aadhaar authentication services with necessary standard security and privacy measures. This would help these entities to perform in real time and make e-KYC (know your customer) that would reduce cost of transaction, an official statement said.

“This would also be beneficial to the customers or the investors, especially the small and retail investors, as they need not submit physical papers or documents for KYC,” a statement quoting finance secretary Ajay Bhushan Pandey said. Earlier, 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 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), it said.