The Unique Identification Authority of India (UIDAI) has announced several new Aadhaar rules and guidelines in 2025, impacting crores of users across India. Over the past year, the UIDAI has been working to simplify and digitise Aadhaar services, and Aadhaar cardholders may see even more rule changes from next month. The new UIDAI Aadhaar update rules 2025 aim to make Aadhaar correction and verification faster, paperless, and more convenient for users across the country.

One of the biggest updates is the revision in Aadhaar update fees. From October 2025, users updating their Aadhaar details such as name, address, date of birth, or mobile number at enrolment centres will need to pay the new prescribed charges. Earlier, online Aadhaar address updates were free until mid-2025. In addition, the government has made Aadhaar–PAN linking mandatory for all PAN holders. As per the latest UIDAI and Income Tax Department guidelines, individuals must link their PAN with Aadhaar by December 31, 2025; failing to do so will render the PAN inactive from January 1, 2026.

For new PAN applicants, Aadhaar authentication has been made compulsory. Further, KYC (Know Your Customer) procedures for banks and financial institutions have been simplified. Customers can now complete banking KYC verification through Aadhaar OTP, video KYC, or in-person verification, making the entire process paperless, secure, and faster. These UIDAI Aadhaar and PAN linking rules 2025 are expected to enhance transparency and ease of doing financial transactions across India.

These changes have also impacted financial services such as banking activities, small savings schemes and other money rules.

Major recent Aadhaar rule changes impacting financial services

  1. Aadhaar update fees increased

Aadhaar update fees have been revised. Effective October 1, 2025, the UIDAI (Unique Identification Authority of India) has implemented changes in rates for updating name, address or biometrics.

New Aadhaar update fees (from Oct 1, 2025)

Demographic updates (Rs 75): For changes in name, address, date of birth, mobile number, or email. (Earlier, it was Rs 50.)

Biometric updates (Rs 125): For fingerprint, iris, or photo updates. (Earlier, it was Rs 100.)

Mandatory biometric updates for children: Free for children aged 5–7 years and 15–17 years, as these are one-time updates.

Biometric updates for children aged 7–15 years: Free till September 30, 2026, to encourage timely updates.

Document updates: Rs 75 at enrolment centres, but free online till June 14, 2026.

Aadhaar reprint: Rs 40.

Home enrolment service: Rs 700 for the first person and Rs 350 for each additional person at the same address.

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  1. PAN-Aadhaar linking

The second major change concerns PAN-Aadhaar linking. The government has maintained that those who do not link their PAN and Aadhaar will have their PAN inoperative.

This means that such users might face problems while investing in mutual funds, opening a Demat account, or invesing in tax-saving instruments.

Many people have faced this issue — their investment redemptions and mutual fund transactions were paused due to inactive PAN. So, linking PAN-Aadhaar on time is crucial for seamless financial transactions.

  1. Aadhaar e-KYC becomes simpler and safer

The third big change is around Aadhaar e-KYC. UIDAI and NPCI have launched new features like offline Aadhaar KYC and Aadhaar e-KYC Setu.

Now, banks and NBFCs can identify customers without accessing their full Aadhaar number. This will improve data privacy and make account opening faster and easier.

  1. Aadhaar validation norms

UIDAI has also tightened Aadhaar validation rules. As per the new guidelines, financial institutions can perform Aadhaar-based KYC only if the Aadhaar number is active and non-duplicate.

If your Aadhaar is found to be invalid or duplicated, your bank account opening or investment process could be stopped. Therefore, UIDAI has advised users to regularly check their Aadhaar status on its official website or mAadhaar app.

Upcoming Aadhaar rule changes

Now let’s talk about the Aadhaar rule changes that will come soon and impact your financial life.

First, AePS (Aadhaar Enabled Payment System) rules are being tightened. The RBI has issued new fraud monitoring and KYC verification rules for banks and business correspondents, effective January 1, 2026. This means that Aadhaar-based cash withdrawal or deposit services may become more expensive or limited in rural areas or small towns. While this will reduce fraud cases, some users may face access issues.

The second major change involves the expansion of Aadhaar-based services in small savings schemes. Accounts like Post Office RD, PPF, and NSC can now be opened using Aadhaar e-KYC. This will benefit customers with paperless onboarding and save time. However, if Aadhaar is not linked or is outdated, your deposit or withdrawal may be blocked.

Third, UIDAI is working to simplify the offline KYC framework. In the coming months, you’ll simply need to show your Aadhaar secure QR code or masked ID at the bank or investment platform, ensuring personal information remains secure. This will be a major relief for fintech users and digital investors.

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What else is changing from November 1 for Aadhaar users?

Starting November 2025, Aadhaar users will be able to update key details like their name, address, date of birth, and mobile number entirely online, without visiting an Aadhaar centre. Only biometric updates such as fingerprints or iris scans will still require a physical visit at Aadhaar centres.

Under the new system, the UIDAI will automatically verify your information by linking it with other government databases such as PAN, passport, driving licence, ration card, MNREGA, birth certificate, and school records. This means users will no longer need to manually upload documents — making the Aadhaar update process faster, easier, and more accurate.

Why these Aadhaar changes matter for your finances

All these changes will directly impact your bank account, mutual funds, PPF, insurance policies, and small savings deposits. If you fail to update your Aadhaar or link your PAN-Aadhaar on time, you may face interest losses, transaction delays, or KYC rejections.

The government’s aim is to increase financial inclusion and reduce fraud, but at the same time, the average investor will now have to spend some time and money on identity maintenance.

What you should do now (action points for readers)

Check your Aadhaar status and update date by visiting the UIDAI website or mAadhaar app.

Check the PAN-Aadhaar linking status on the Income Tax portal.

Update your Aadhaar information in your bank or investment account to avoid any mismatches.

If you’re a rural saver, visit your co-operative bank or Aadhaar Seva Kendra to learn about AePS changes.

And most importantly, keep updating your Aadhaar-based KYC documents regularly to avoid any financial transactions.