AADHAR AUTHENTICATION: GOVERNANCE

AADHAR AUTHENTICATION: GOVERNANCE

NEWS: UIDAI notifies rules for private entities to perform Aadhaar authentication

WHAT’S IN THE NEWS?

The Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 introduces a new process for private entities to seek Aadhaar authentication through government ministries, modifying the 2020 framework. The changes remove earlier references to preventing public fund leakage and redefine the approval mechanism.

1. Amendment Rules, 2025: Changes Introduced

  • The Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 modifies the 2020 framework.
  • The phrase “preventing leakage of public funds” has been removed from the rules' objectives.
  • The approval process for Aadhaar authentication has been altered for private entities.

2. Previous Process for Aadhaar Authentication (Before 2025)

  • Government Ministries or Departments had to prepare a proposal.
  • Proposal required justification under Rule 3 (governing Aadhaar authentication).
  • Central Government referred the proposal to UIDAI for approval.

3. New Process for Private Entities (After 2025 Amendment)

  • Private firms must prepare a proposal stating the necessity of Aadhaar authentication.
  • Proposal must align with purposes defined under Rule 3 and serve the State’s interest.
  • The proposal must be submitted to a Union or State government Ministry/Department.
  • The concerned Ministry will forward it to the Central Government, which will then refer it to UIDAI.

4. Potential Use Cases for Aadhaar Authentication (Private Sector)

  • Hotels: Implementing Aadhaar-based authentication for guest verification.
  • Healthcare: Aadhaar authentication for patient identity verification and service delivery.

5. The Aadhaar Act, 2016: Overview

  • Passed as a Money Bill in Parliament.
  • Provides legal framework for Aadhaar usage in government subsidies and services.
  • Aims to eliminate fake identities and ensure targeted delivery of benefits.

6. Key Features of the Aadhaar Act

  • UIDAI’s Role: Responsible for issuing Aadhaar, security, and authentication.
  • Aadhaar Number: A 12-digit unique ID, not proof of citizenship.
  • Authentication Methods:
  • Biometric: Fingerprints, iris scans.
  • Demographic: Name, address, date of birth.

7. Legal and Privacy Aspects

  • Mandatory vs. Voluntary Use:
  • Aadhaar is mandatory for government subsidies, PAN linkage, and IT returns.
  • The Supreme Court (2018) ruled Aadhaar cannot be mandatory for private services like banks, telecom, and schools.
  • Privacy & Data Protection:
  • UIDAI cannot share core biometric data (fingerprints, iris scans).
  • Aadhaar authentication data can be stored for six months but not used for surveillance.
  • Offenses & Penalties:
  • Unauthorized access and misuse can lead to imprisonment and fines.

Source: https://www.thehindu.com/news/national/uidai-notifies-rules-for-private-entities-to-perform-aadhaar-authentication/article69165242.ece