On April 20, 2023, the Ministry of Electronics and Information Technology (“MeitY”), Government of India, released a press statement proposing an amendment to the Aadhaar Authentication for Good Governance Rules, 2020 (“Rules”) which expanded the applicability of the Rules to enable Aadhaar authentication by non-governmental entities as well. The proposed amendment aims to promote ease of living and better access to services for the citizens of India.

Existing Rules:

The existing Rules allow only the government ministries and departments to undertake Aadhaar authentication, in accordance with the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, read with the Aadhaar (Authentication) Regulations, 2016.

The Central Government has the authority to permit Aadhaar authentication by requesting entities for the purpose of good governance, which includes ensuring digital governance, preventing misuse of social welfare benefits, and promoting innovation and knowledge dissemination.

Proposed Amendments to the Rules:

Proposed amendments to the Rules inculcate the following suggestions:

1. Any entity other than a government ministry or department of the Central or State Government may use Aadhaar authentication to promote good governance;
2. The purposes for Aadhaar authentication now include “promotion of ease of living and better services for the residents of the State”; and
3. The non-governmental entity must prepare a proposal justifying how the authentication sought is in accordance with the Rules. Subsequently, the proposal must be submitted to the concerned government ministry or department, which if is of the opinion that the proposal fulfills the specified purposes, will then forward the proposal along with its recommendations to the Unique Identification Authority of India (“Authority”).

Author`s View:

The proposed Rules seem subjective in nature and ‘purpose of good governance’ lacks clarity which might be resolved after the deliberation over comments collected through public consultation, which concluded on May 5, 2023 and the Rules are notified after revision.

Please find a copy of the draft amendment to the Rules, here.

This update has been contributed by Neha Madan (Partner) and Gracy Bindra (Associate).

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