On 20 November 2025, the Department of Expenditure issued an important notification (G.S.R. 859(E)) that will significantly enhance how beneficiaries, vendors, and government employees access information through the Public Finance Management System (PFMS). The notification focuses on the voluntary use of Aadhaar authentication to simplify identity verification and improve the user experience through the PFMS Mobile Application.
Why Aadhaar Authentication?
Aadhaar has long been recognized as a powerful tool for enabling seamless access to government subsidies, benefits, and services. By providing a unique digital identity, it eliminates the burden of carrying multiple documents and reduces procedural delays. The government highlights in this notification that Aadhaar-based verification not only makes processes efficient but also enhances transparency and accountability—key pillars of good governance.
What Does the Notification Authorise?
The Ministry of Electronics and Information Technology (MeitY), after consultations with the Unique Identification Authority of India (UIDAI), has formally permitted the PFMS Division within the Office of the Controller General of Accounts (CGA) to conduct Aadhaar authentication. This is specifically allowed under the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020.
What makes this notification notable is its scope. The PFMS Division may now authenticate the identity of:
- Beneficiaries
- Vendors
- Government employees
who receive payments through PFMS and wish to access their payment or scheme details through the PFMS Mobile Application. The authentication may use Yes/No verification or eKYC, depending on the user’s choice.
Voluntary, Not Mandatory: User Choice at the Core
A major reassurance in the notification is that Aadhaar authentication remains entirely voluntary. The government reiterates that no individual can be denied any service for choosing not to authenticate using Aadhaar. Agencies must also proactively inform users about available alternatives.
A key alternative method offered is:
- Bank Account Number + OTP sent to the mobile number registered with the bank.
This provides a flexible and accessible option for those who prefer not to use Aadhaar or may not have access to Aadhaar-enabled services.
Exclusive Use for PFMS Mobile Application
The notification clearly states that Aadhaar authentication will be used only for the PFMS Mobile Application and not for any other purpose. This tightens data protection boundaries and ensures compliance with the Aadhaar Act, 2016.
When Does This Take Effect?
The notification comes into force from the date of its publication in the Official Gazette—meaning it is active as of 20 November 2025.
What This Means for Users
With Aadhaar authentication now enabled on a voluntary basis, users of PFMS—particularly beneficiaries tracking payments—can expect a more streamlined experience. The PFMS app becomes easier to access, more secure, and more intuitive. At the same time, by retaining non-Aadhaar login options, the government maintains inclusivity and ensures no one is left out.