The ministry of electronics and information technology (MeitY) on Thursday proposed changes in the existing rules to enable Aadhaar authentication by private companies to promote ease of living of residents and enable better access to services.

In a draft amendment to the Aadhaar Authentication for Good Governance rules, MeitY said any entity other than the ministry or department which wants to utilise Aadhaar authentication should send a proposal to the ministry or government department concerned.

Simply put, the government proposes to extend the scope for companies to use Aadhaar authentication for verifying the identity of its consumers or users, given that the company would be using the same for specified purposes. Such proposals by private entities will only get an approval if they 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, or preventing dissipation of social welfare benefits, or enabling innovation and spread of knowledge, MeitY said in a statement.

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“If the ministry/department is of the opinion that the proposal submitted fulfils such a purpose and is in the interest of the State, it will forward the proposal along with its recommendation to MeitY,” the statement said.

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. Till now, only entities such as banks and telecom companies were allowed to perform authentication if the Unique Identification Authority of India (UIDAI) was satisfied about their compliance with regard to standards of privacy and security specified by regulations, according to an amendment in 2019 to the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

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According to UIDAI, a total 91.5 billion Aadhaar authentications have been done till now by 250 agencies. In the last few days, 70-80 million authentications were done daily.

The feedback on the draft proposal can be submitted through the MyGov platform by May 5.