India Expands Aadhaar Authentication to Private Entities, Raising Privacy Concerns

New rules allow businesses in sectors like e-commerce and healthcare to use Aadhaar for customer verification, prompting calls for greater transparency and safeguards.

• The Indian government has amended Aadhaar authentication rules, enabling private entities in sectors such as e-commerce, travel, healthcare, and hospitality to use the system for user verification.
• The Aadhaar Authentication for Good Governance Amendment Rules, 2025, aim to enhance service delivery and promote innovation, social welfare, and knowledge sharing.
• Privacy advocates have raised concerns about the potential misuse of biometric data, urging clearer criteria and transparency in approving applications for Aadhaar use.
• The Supreme Court previously restricted private access to Aadhaar data in 2018, and the current expansion revives debates over data security and voluntary participation.
• Entities seeking to use Aadhaar authentication must apply to relevant government ministries, with approvals based on recommendations from the Unique Identification Authority of India (UIDAI).

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