UIDAI notifies rules for private entities to perform Aadhaar authentication

UIDAI outlines process for private entities to access Aadhaar authentication through government referral, amending rules for good governance.

The Unique Identification Authority of India (UIDAI) on Friday (January 31, 2025) outlined a process for private entities to gain access to Aadhaar authentication: namely, the firms will have to refer their use case to a Union or State government Ministry or department, which will then have to refer the proposal to the UIDAI. The Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 make these additions to a brief framework originally published in 2020. 

Language in the earlier rules that described their purpose as in the “interest of good governance, preventing leakage of public funds” has been removed with Friday’s amendment.

“The Ministry or the Department of the Government of India or the State government, as the case may be, desirous of utilising Aadhaar authentication for a purpose specified in rule 3 shall prepare a proposal with justification in regard to such purpose for which Aadhaar authentication is sought and submit the same to the Central government for making a reference to the [UIDAI],” the previous rules stated.

In the amended version, “Any entity other than the Ministry or Department … desirous of utilising Aadhaar authentication, shall prepare a proposal with justification in regard to the authentication sought being for a purpose specified in rule 3 and in the interest of State, and submit the same to the concerned Ministry or department of the appropriate government.” This proposal would have to then be submitted to the Union government, which would then refer it to the UIDAI.

The draft for this proposal was floated last April. A government official speaking to The Hindu then had said that potential use cases for the private sector included hotels having a better authentication framework to process Aadhaar from guests. The healthcare industry may also be able to take advantage of this amendment, the official said.