Government Allows TransUnion CIBIL to Use Aadhaar for Identity Verification

The Ministry of Finance (Department of Financial Services) has issued an official notification allowing TransUnion CIBIL Limited to use Aadhaar authentication for verifying the identity of users.

The notification (S.O. 1011(E)) states that Aadhaar helps individuals receive subsidies, benefits and services in a smooth and convenient manner. It reduces the need to submit multiple documents for identity proof, simplifies procedures, and promotes transparency and efficiency.

Approval from MeitY and UIDAI

Before issuing this notification, the Ministry of Electronics and Information Technology (MeitY), after consultation with the Unique Identification Authority of India (UIDAI), gave approval through its letter No. 13(3)/2023-EG-II dated 2 February 2026.

Based on this approval, the Ministry of Finance has now formally permitted TransUnion CIBIL Limited to carry out Aadhaar authentication under:

• Rule 3(1) of the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020
• Rule 5 of the same Rules
• Section 4(4)(b)(ii) of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016

Purpose of Aadhaar Authentication

The notification clearly states that Aadhaar authentication will be used only for a specific purpose:

• Accessing credit information reports of users.
• Verifying identity during registration and login on the CIBIL platform.

Authentication can be done using:

• Yes/No authentication, and/or
• e-KYC authentication facilities.

The government has clarified that Aadhaar authentication will be used only for establishing the identity of users in these cases.

Aadhaar Authentication Is Voluntary

The notification clearly mentions that Aadhaar authentication will be completely voluntary.

TransUnion CIBIL must:

• Obtain consent from the Aadhaar holder before performing authentication.
• Inform users about alternative identification options.
• Not deny any service if a person refuses or is unable to undergo Aadhaar authentication.

Alternative Identity Documents Allowed

If a person does not want to use Aadhaar, the company must accept the following valid identity documents:

1. Permanent Account Number (PAN) Card
2. Passport
3. Voter’s Identity Card issued by the Election Commission of India
4. Driving License issued under the Motor Vehicles Act, 1988 (59 of 1988)
5. Ration Card

This means no service can be denied only because a person does not want to use Aadhaar.