PFMS Gets Aadhaar Authentication Recognition

Direct Benefit Transfer services under various government schemes are set to become more streamlined for beneficiaries. The Public Financial Management System (PFMS), which facilitates the direct transfer of government funds and subsidies into beneficiaries’ bank accounts, has received special recognition from the Unique Identification Authority of India (UIDAI) after becoming one of the fastest organisations to join the Aadhaar Authentication User Agency (AUA) framework.

PFMS operates under the Department of Expenditure in the Union Ministry of Finance and functions under the Controller General of Accounts. It is already integrated with banks and other financial systems, playing an important role in digital payments, fund transfers and financial reporting. With its new status as an AUA, PFMS will have an official integration to directly use Aadhaar authentication services such as OTP and biometric verification to establish beneficiaries’ identities, helping make DBT services more efficient and seamless.