The UIDAI issued new rules allowing private entities to conduct Aadhaar authentication under government oversight. Companies must first submit their use case to a Union or State government ministry, which will then forward the proposal to UIDAI. This ensures stricter regulation and prevents misuse of Aadhaar data. The move aims to enhance security while enabling wider Aadhaar-based services.
The Unique Identification Authority of India (UIDAI) announced on January 31, 2025, a new process for private entities to access Aadhaar authentication.
According to the recent amendments to the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2025, private firms must first submit their use case to a relevant Union or State government Ministry or department, which will then forward the proposal to UIDAI.
Also Read: Aadhaar Card Not a Proof of Citizenship: UIDAI Tells Calcutta HC
Notably, the language in the previous rules that emphasized the purpose of Aadhaar as serving “the interest of good governance and preventing leakage of public funds” has been removed.
The amended rules state that any entity outside the government seeking Aadhaar authentication must prepare a justification for its proposal, focusing on its relevance to the State’s interests, and submit it to the appropriate government Ministry or department.
This proposal will subsequently be forwarded to the Union government for consideration by UIDAI.
A government official previously indicated potential use cases for the private sector, such as hotels enhancing their authentication processes for guest Aadhaar verification and opportunities within the healthcare industry.
UIDAI (Unique Identification Authority of India)
The Unique Identification Authority of India (UIDAI) is a government agency responsible for issuing and managing Aadhaar, the world’s largest biometric identification system. It was established in 2009 under the Ministry of Electronics and Information Technology (MeitY).
Also Read: Aadhaar Cards Deactivated | Calcutta HC Orders Centre to Submit Affidavit on PIL
Key Functions of UIDAI:
- Issuing Aadhaar Numbers: Provides a unique 12-digit identification number to residents of India.
- Aadhaar Authentication: Enables identity verification for various government and private services.
- Data Security & Privacy: Ensures the protection of biometric and demographic information.
- Regulating Aadhaar Use: Sets rules for Aadhaar authentication by government and private entities.
Aadhaar is widely used for government subsidies, banking, mobile verification, and digital identity authentication.