MeitY Could Allow Aadhaar Authentication by Private Entities, Here’s How

The Ministry of Electronics and Information Technology (MeitY) is hoping to introduce new rules to allow entities other than Government Ministries and Departments to perform Aadhaar authentication. MeitY says that these new rules are being recommended with an intent to promote ease of living and better access to services for citizens. 

How Can Private Entities Sign Up for Aadhaar Authentication?

According to an amendment to the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, enacted in 2019, entities are allowed to perform authentication if they comply with privacy and security standards specified by regulations and are either permitted by law to offer authentication services or seek authentication for a prescribed purpose. 

At present, only Government Ministries and Departments are allowed to undertake Aadhaar authentication under the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020, in the interest of good governance, preventing leakage of public funds, and enabling innovation and the spread of knowledge. 

How Can Private Entities Sign Up for Aadhaar Authentication?

Under the proposed amendment, any entity other than a Government Ministry or Department that desires to use Aadhaar authentication for the purpose of promoting ease of living and enabling better access to services or usage of digital platforms to ensure good governance, preventing dissipation of social welfare benefits, enabling innovation and spread of knowledge, shall prepare a proposal giving justification as to how the authentication sought is for one of the said purposes and in the interest of the State. 

If the proposal fulfils such a purpose and is in the interest of the State, it will be forwarded by the concerned Ministry or Department of the Central Government in respect of Central subjects and of the State Government in respect of State subjects to MeitY. The proposed amendment has been posted on the Ministry website, and comments are being invited from stakeholders and the general public.