Finance Ministry Allows CIBIL To Use Aadhaar Authentication For User Identity Verification

The Ministry of Finance on Wednesday notified that TransUnion CIBIL Limited may use Aadhaar authentication to establish the identity of users during registration and login on the CIBIL platform for accessing credit information reports, subject to the user's consent and on a voluntary basis.

The notification states that TransUnion CIBIL Limited “may be allowed to perform authentication and be permitted the use of Aadhaar number during authentication for establishing identity of Aadhaar number holder” and that such authentication shall be performed “for the purpose of accessing credit information reports of users.”

Issued under the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020, read with Section 4(4)(b)(ii) of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, the notification clarifies that Aadhaar authentication shall be voluntary.

It further mandates that the agency shall obtain the consent of the Aadhaar number holder and inform users of alternate and viable means of identification. No service shall be denied for refusing or being unable to undergo Aadhaar authentication.

The alternate identification documents listed are: Permanent Account Number (PAN) Card, Passport, Voter's Identity Card issued by the Election Commission of India, Driving License issued under the Motor Vehicles Act, 1988, and Ration Card.

TransUnion CIBIL is one of four RBI-registered credit information companies in India, alongside Experian, Equifax and CRIF High Mark, that provide credit reports and scores to lenders.