Summary: Implementation of Aadhaar Data Encryption in PFMS Payment Files
The Government of India's Ministry of Finance has issued a new Office Memorandum dated May 19, 2026, regarding the implementation of Aadhaar data encryption within Public Financial Management System (PFMS) payment files.
Key Changes in the PFMS Process
- Previously, Aadhaar numbers (UID) within payment files were visible in plain text before being sent to the bank.
- To enhance data security and ensure compliance with the Aadhaar (Sharing of Information) Regulations, 2016, the Aadhaar numbers will now be encrypted upon the approval of the payment file by the agency user.
- After the file is approved, the user will no longer be able to review the UID data in plain text.
- Only files containing encrypted Aadhaar data will be shared with banks for processing.
Action Required by Agencies
- All agencies using the PFMS platform must ensure they thoroughly check the Aadhaar data before approving the payment file.
- As a reminder, the PFMS portal will display a system-generated message on the Approval Page stating: "After approval, the Aadhaar number in the payment file will be encrypted and not visible in plain text.".
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Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.
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