Section 11A - Verification of identity by reporting entity

Verification of identity: reporting entities may use Aadhaar or alternatives, and storage of biometric data is prohibited.

Reporting entities must verify clients and beneficial owners using Aadhaar authentication (for banking companies), offline Aadhaar verification, passport, or other officially valid documents; the Central Government may permit non banking entities to use Aadhaar authentication subject to privacy and security standards and consultation. Where Aadhaar authentication is used, alternative identification modes must also be made available. Choice of mode is voluntary and services cannot be denied for lack of an Aadhaar number. Use of Aadhaar authentication must not result in storage of core biometric information or the Aadhaar number; additional safeguards may be prescribed by the Central Government.