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Government Expands Aadhaar Authentication to Private Entities Under New 2025 Amendment Rules

2 Feb 2025 3:41 PM - By Shivam Y.

Government Expands Aadhaar Authentication to Private Entities Under New 2025 Amendment Rules

In a significant move aimed at enhancing public service delivery and promoting innovation, the Ministry of Electronics and Information Technology (MeitY) has notified the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025. These amendments, introduced under Section 53 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, expand the scope of Aadhaar authentication to include both government and private entities.

The amended rules empower entities—ranging from government departments to private organizations—to leverage Aadhaar authentication for delivering services in sectors like e-commerce, health, tourism, and hospitality. The objective is to streamline service delivery, reduce bureaucratic hurdles, and ensure residents can access benefits seamlessly.

“Aadhaar Authentication has been expanded to government and private entities for providing various services in the public interest, boosting innovation, knowledge, and public service enhancement.”

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How the New Process Works

Under the revised framework, any entity seeking to use Aadhaar authentication must submit a detailed proposal to the concerned ministry or department of the Central or State Government. The proposal must justify how the authentication aligns with the objectives outlined in Rule 3 of the amendment, which emphasizes promoting ease of living, better access to services, and public welfare.

1. Submission of Proposal:- Entities must outline their requirements through a standardized format available on a dedicated portal. The proposal should specify the purpose of authentication, target beneficiaries, and how it serves the “interest of the State.”

2. Examination by UIDAI and MeitY:- The Unique Identification Authority of India (UIDAI) will evaluate the proposal to ensure compliance with the Aadhaar Act and its provisions. Upon UIDAI’s recommendation, MeitY grants final approval.

3. Authorization and Notification:- Once approved, the concerned ministry or department notifies the entity, authorizing it to use Aadhaar authentication. This step ensures accountability and adherence to constitutional safeguards under Articles 77 and 166, which govern business allocation in governments.

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The 2025 rules address critical gaps in service delivery by enabling private players to integrate Aadhaar-based verification. For instance:

  • E-Commerce Platforms can streamline customer onboarding and reduce fraud.
  • Healthcare Providers can expedite patient identification for subsidized treatments.
  • Tourism and Hospitality Sectors can enhance traveler experiences through faster check-ins.

“Amendments will enhance residents’ ease of living and livelihood by enabling seamless access to services in sectors like health, travel, and innovation.”

To prevent misuse, the amendment mandates rigorous scrutiny of proposals. Entities must demonstrate that their use of Aadhaar authentication is necessary, proportionate, and in the public interest. Additionally, the “Explanation” clause in Rule 4 clarifies that only ministries/departments authorized under constitutional rules of business can process requests, ensuring legal compliance.

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For citizens, the amendments promise faster access to services with minimal paperwork. Whether applying for a subsidy, booking a train ticket, or availing healthcare, Aadhaar authentication reduces delays and eliminates redundant verification steps.

While the move has been lauded for its potential to boost efficiency, privacy advocates urge caution. Critics argue that expanding Aadhaar usage to private entities increases risks of data breaches. However, MeitY emphasizes that all authentication requests will adhere to UIDAI’s stringent security protocols, including encryption and consent-based access.

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The Road Ahead

The 2025 Amendment Rules mark a paradigm shift in India’s digital governance landscape. By bridging the gap between public and private sectors, the government aims to create an ecosystem where Aadhaar serves as a universal identifier for inclusive growth.

"Courts have previously upheld Aadhaar’s constitutionality for welfare schemes but stressed the need for robust data protection. The new rules align with these directives by mandating strict oversight."

The Aadhaar Authentication for Good Governance Amendment Rules, 2025, reflect the government’s commitment to leveraging technology for public welfare. By enabling private entities to use Aadhaar responsibly, the reforms aim to foster innovation while ensuring transparency and security. As these rules take effect, collaboration between stakeholders will be crucial to balancing convenience with privacy.