The government has amended the Aadhaar Act, allowing private institutions to use Aadhaar authentication for providing their services. This was notified on Friday, along with the “Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025.”
Earlier, in September 2018, the Supreme Court declared Section 57 of the Aadhaar Act as potentially prone to misuse. Under this section, private institutions were allowed to use Aadhaar verification for commercial purposes. However, the recent amendment now allows private entities to use Aadhaar authentication, provided their proposed plans are approved.
These changes aim to facilitate better governance and innovation while ensuring that Aadhaar verification is used responsibly.
How to get permission for Aadhaar verification?
Preparation of proposal – Any entity other than a ministry or department, which wants to use Aadhaar verification, will have to prove that its purpose falls under Rule 3 and it is in the ‘interest of the State’
Review and Approval – The proposal will be submitted to the relevant ministry or department. If the ministry believes it is in the ‘interest of the state,’ it will send the proposal to the central government with a recommendation.
UIDAI and IT Ministry Review – Applications from private institutions will be reviewed by the Unique Identification Authority of India (UIDAI). Then, the Ministry of Electronics and IT will approve the proposal based on UIDAI’s recommendation.
Final Approval – The relevant ministry or department of the central or state government will notify the institution for Aadhaar verification.
For what purposes can Aadhaar verification be done under Rule 3?
Ensuring good governance through digital platforms.
- Preventing misuse of social welfare schemes.
- Promoting innovation and dissemination of knowledge
- Furthermore, a sub-rule under Rule 3 clarifies that Aadhaar verification will be completely voluntary.
For which services will allowing Aadhaar verification be helpful?
According to the government, this amendment will help people access services in sectors like e-commerce, travel, tourism, hotels, healthcare, and more. Additionally, it will improve access to innovation and digital services. Now, any institution can apply for Aadhaar verification through a special portal, where they will need to provide details of their requirements. This amendment will help both government and private institutions increase transparency and inclusivity, ensuring that people receive reliable services.