Government Eases Aadhaar Authentication Rules for Private Entities

The government has amended the Aadhaar Act to permit private entities to use Aadhaar authentication for service delivery, enhancing transparency and inclusivity. The amendment allows these entities to apply for Aadhaar usage through proposals reviewed by UIDAI and Meity, intended for purposes like innovation and social welfare.

In a significant move, the government has revised the Aadhaar Act, allowing private entities to use Aadhaar authentication for delivering their services. As per a notification issued on Friday, the amendment seeks to bolster transparency and inclusivity.

Previously, the Supreme Court had criticized Section 57 of the Aadhaar Act for its potential misuse, as it enabled private entities to use Aadhaar for business purposes. Now, the amended rules require private entities to justify their need for Aadhaar authentication, ensuring it's in the interest of good governance, innovation, or social welfare.

The Ministry of Electronics and IT stated that this amendment facilitates both governmental and non-governmental entities in providing services that promote innovation and ease of access for residents. The approval process involves an evaluation by UIDAI and recommendations to Meity for final approval, reinforcing trusted transactions across sectors like e-commerce and health.

(With inputs from agencies.)