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Aadhaar e-KYC Licence Route for NBFCs and Payment Firms

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2021-22/98 · issued 13 Sep 2021 · ~1 min read

Quick answerRBI has opened a channel for NBFCs, payment system providers, and participants to apply for Aadhaar e-KYC authentication licences (KUA/sub-KUA) via the Department of Regulation, for onward submission to UIDAI.

What changed

RBI issued a circular detailing the application process for NBFCs, payment system providers, and participants to obtain Aadhaar e-KYC authentication licences (KUA or sub-KUA) from UIDAI. This follows Section 11A of the PML Act, 2002, which allows non-banking entities to use Aadhaar e-KYC after central government notification. Applications must be submitted to RBI's Department of Regulation, which will forward them to UIDAI.

What it means for you

NBFCs and payment firms can now formally apply for Aadhaar e-KYC licences through RBI, streamlining customer onboarding and authentication. This reduces reliance on banks for e-KYC and enables direct Aadhaar-based verification, improving efficiency and compliance. Lenders should prepare to leverage this for faster, more secure KYC processes.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review the application format provided in the circular's annex and prepare necessary documents.
Submit completed applications to RBI's Department of Regulation via post or email as specified.
Ensure compliance with PML Act requirements and UIDAI guidelines for KUA/sub-KUA licences.
Monitor RBI and UIDAI updates for any changes in the application process or eligibility criteria.

Who it affects

Non-Banking Finance Companies (NBFCs), Payment System Providers, Payment System Participants, Compliance and KYC teams at these entities

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 07:30 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the purpose of this circular?

It provides a procedure for NBFCs, payment system providers, and participants to apply for Aadhaar e-KYC authentication licences (KUA or sub-KUA) from UIDAI, routed through RBI.

Who can apply under this circular?

Non-Banking Finance Companies, Payment System Providers, and Payment System Participants that are not banking companies can apply.

How do I submit the application?

Applications must be sent to RBI's Department of Regulation in the format given in the annex, either by post or email as specified in the circular.

📜 Read the original circular — full text as issued by RBI

RBI/2021-22/98
 DOR.AML.REC 48/14.01.001/2021-22
 September 13, 2021
 The Chairpersons / CEOs of all Non-Banking Finance Companies (NBFCs), Payment System Providers and Payment System Participants
 Madam / Dear Sir,
 Application for Aadhaar e-KYC Authentication Licence
 In terms of Section 11A of the PML Act, 2002, entities other than banking companies may, by notification of the Central Government, be permitted to carry out authentication of client’s Aadhaar number using e-KYC facility provided by the Unique Identification Authority of India (UIDAI). Such notification shall be issued only after consultation with UIDAI and the appropriate regulator.
 A detailed procedure for processing of applications under the aforementioned Section for use of Aadhar authentication services by entities other than banking companies has been provided by the Department of Revenue, Ministry of Finance vide their circular dated May 9, 2019.
 2. Accordingly, Non-Banking Finance Companies (NBFCs), Payment System Providers and Payment System Participants desirous of obtaining Aadhaar Authentication License - KYC User Agency (KUA) License or sub-KUA License (to perform authentication through a KUA), issued by the UIDAI, may submit their application to this Department for onward submission to UIDAI. The applications can also be forwarded over email . The format of the application is provided in the Annex to this circular.
 Yours faithfully,
 (Prakash Baliarsingh)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/98 · issued 13 Sep 2021. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12161&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.