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Aadhaar Authentication Amendment 2025: Key Highlights

The Ministry of Electronics and Information Technology (MeitY) has announced the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits, and Services) Act, 2016. This amendment aims to make Aadhaar authentication more useful and accessible, not just for government services but also for private entities. The goal is to improve transparency, and inclusivity, and make it easier for people to access services while supporting better decision-making.

With India moving towards a more digital future, these changes will help people get services more easily and securely. It’s about making life simpler and safer, whether you’re dealing with government bodies or private businesses.

Expanding Aadhaar Authentication For Ease Of Living

The Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 significantly expands the scope of Aadhaar authentication. Earlier, Aadhaar was primarily used to access government subsidies, benefits, and services. With this amendment, both government and non-government entities can now use Aadhaar authentication to improve service delivery and promote ease of living.

This move enables industries like e-commerce, travel, tourism, hospitality, and healthcare to offer services more efficiently through Aadhaar-based verification. For example, it will simplify hotel check-ins, streamline online transactions, improve healthcare service access, and reduce the need for repetitive document submissions.

What’s more, the amendment targets creating a secure and trusted environment for both service providers and users. By allowing more entities to use Aadhaar authentication, the government is fostering a system where identity verification is quick, reliable, and helps prevent fraud. This change is expected to encourage innovation, enhance service quality, and support the development of digital solutions that benefit individuals and businesses alike.

Streamlined Approval Process For Aadhaar Authentication Requests

To ensure that Aadhaar authentication is used responsibly and efficiently, the amendment introduces a more streamlined approval process for entities seeking to use this service. Any organisation, whether a government department or a private entity, must apply detailed information about their intended use of Aadhaar authentication.

Applications will be submitted through a dedicated portal to the relevant ministry or department of the Central or State Government. The Unique Identification Authority of India (UIDAI) will then review these applications to assess their purpose and compliance with regulations. Based on UIDAI’s recommendations, MeitY will grant the necessary approvals. Once approval is confirmed, the concerned ministry or department will notify the entity, authorising them to use Aadhaar authentication.

This structured approach ensures that Aadhaar authentication is only used for legitimate purposes that serve the public interest, such as enabling innovation, spreading knowledge, and improving access to services. It helps maintain the integrity of Aadhaar while allowing organisations to develop efficient, secure service delivery models.

Impact On Governance, Innovation, And Service Delivery

The amendment is expected to have a wide-ranging impact on governance, innovation, and service delivery in India. By broadening the scope of Aadhaar authentication, the government aims to foster an environment where technology can be leveraged for more efficient public and private services.

For governance, this means improved transparency and accountability. Government bodies can streamline administrative processes, reduce fraud, and ensure that subsidies and benefits reach the right individuals without delays.

In terms of innovation, businesses can create new digital products and services that rely on secure Aadhaar authentication. This could lead to development of advanced fintech solutions, health tech applications, and personalised e-commerce platforms that enhance user experience.

For individuals, the amendment translates into better access to essential services. Whether it’s quicker verification for banking, seamless onboarding for new jobs, or hassle-free travel bookings, Aadhaar authentication will simplify many day-to-day activities, making life more convenient and secure.

The Role of Identity Verification In The New Framework

As Aadhaar authentication becomes more widespread, the need for reliable identity verification processes becomes even more critical. This is where organisations specialising in background verification and digital identity verification solutions play an important role. By ensuring that the authentication process is secure, accurate, and compliant with regulations, these organisations help maintain the trust and efficiency of the entire system.

For instance, companies like AuthBridge provide comprehensive identity verification services that align with the goals of the Aadhaar amendment. Their expertise in background checks, digital KYC, and authentication solutions supports both government and private entities in delivering services securely and efficiently. As the use of Aadhaar expands, such verification services will be key to enhancing security, reducing fraud, and promoting trust in digital transactions.

Conclusion

The Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Amendment Rules, 2025 is a significant step towards a more transparent, efficient, and inclusive digital ecosystem in India. By expanding the scope of Aadhaar authentication to both government and private entities, the amendment aims to improve service delivery, foster innovation, and enhance the ease of living for residents.

By Abhinandan, 2 monthsFebruary 3, 2025 ago

Aadhaar eSign vs Digital Sign Certificate

BFSI

Aadhaar eSign vs Digital Signature Certificate (DSC): All Key Differences Explained

As businesses move towards digital transformation, electronic signatures are becoming an everyday necessity for individuals and businesses alike. Whether it’s signing contracts, authorising documents, or completing government formalities, electronic signatures make the process faster, more secure, and completely paperless. In India, Aadhaar eSign and Digital Signature Certificates (DSC) are two popular ways to sign documents digitally, but they’re not the same.

If you’ve ever wondered how these two options work, what sets them apart, and which one is better suited for your needs, you’re at the right place. Aadhaar eSign is all about simplicity and ease—it allows you to sign documents online using just your Aadhaar-linked mobile number or biometric data. On the other hand, DSC is a hardware-based solution that’s perfect for tasks requiring extra layers of security, like filing government tenders or signing high-value contracts.

This blog will break down the differences between Aadhaar eSign and DSC in simple terms, helping you understand their features, benefits, and use cases. By the end of it, you’ll have a clear idea of which one to choose—whether you’re a student filling out an application form, a business signing agreements, or a government official handling sensitive transactions.

What Is Aadhaar eSign?

Aadhaar eSign is a simple, secure, and hassle-free way to sign documents online using your Aadhaar number. It’s perfect for anyone who wants to skip the trouble of dealing with physical paperwork or waiting in long queues for approvals. With Aadhaar eSign, all you need is your Aadhaar-linked mobile number or biometric details to sign documents instantly, no matter where you are.

Here’s how it works: when you initiate an eSign, you’re asked to authenticate your identity. This is usually done via a One-Time Password (OTP) sent to your Aadhaar-registered mobile number. In some cases, biometric authentication, like fingerprints or iris scans, can also be used. Once your identity is verified, your electronic signature is securely created and added to the document.

Aadhaar eSign was introduced to make digital signing accessible to the masses. It’s legally recognised under the Information Technology Act of 2000, so it holds the same weight as a handwritten signature. Whether you’re signing a lease agreement, approving a business contract, or submitting an application form, Aadhaar eSign makes the process quick and straightforward.

Key Features Of Aadhaar eSign

No Physical Device Needed: Unlike traditional digital signatures, Aadhaar eSign doesn’t require a USB token or hardware. It’s completely online.
Instant Authentication: Your identity is verified instantly using Aadhaar-based OTP or biometrics.
Legally Valid: Aadhaar eSign is fully compliant with Indian law and is as valid as a traditional digital or handwritten signature.
Convenient and Scalable: Ideal for individuals, small businesses, and even large organisations needing a quick and cost-effective solution.

Example: Imagine you’re applying for a home loan and need to sign multiple forms and agreements. Instead of printing, signing, and scanning documents, you can use Aadhaar eSign to complete the entire process online in minutes. It’s that simple!

What Is A Digital Signature Certificate (DSC)?

A Digital Signature Certificate, or DSC, is a government-issued digital key that acts as your virtual identity for signing electronic documents. It’s like your personal seal of authenticity in the digital world, ensuring that the documents you sign are secure, unaltered, and undeniably yours. However, unlike Aadhaar eSign, DSC requires a physical device—typically a USB token—to function.

Here’s how it works: When you apply for a DSC, a Certifying Authority (CA), such as eMudhra or VSign, issues a unique key pair (public and private keys) linked to your identity. This key pair is securely stored on the USB token. When signing a document, you plug the token into your computer, enter your PIN, and the DSC creates an encrypted digital signature for the file. This signature ensures the document’s integrity and authenticity.

DSCs are widely used for applications requiring high-security standards, such as government filings, legal agreements, or corporate transactions. They’re particularly valuable for businesses or individuals who frequently deal with sensitive or high-value documents.

Key Features Of Digital Signature Certificates

High Security: The private key never leaves the USB token, making DSC highly secure and resistant to tampering.
Legal Recognition: DSCs are fully compliant with Indian law under the Information Technology Act of 2000 and are accepted for tasks like income tax filing, e-tender submissions, and financial transactions.
Reusable: A single DSC can be used across multiple platforms, making it a long-term solution for frequent users.
Offline Compatibility: Unlike Aadhaar eSign, DSCs can also be used to sign documents offline, making them ideal for environments with limited internet access.

Example: Suppose a construction company is submitting a government tender. The process requires all participating firms to sign the bid documents with a Class 3 DSC, which provides a high level of encryption and security. This ensures the bid is authentic and cannot be altered after submission.

Differences Between Aadhaar eSign And Digital Signature Certificates (DSC)

While both Aadhaar eSign and Digital Signature Certificates (DSC) allow users to sign documents electronically, their underlying technologies, authentication methods, and use cases make them fundamentally different. Below is a detailed breakdown of the key differences between the two:

Authentication Method Aadhaar eSign is entirely Aadhaar-based. It uses either an OTP sent to the signer’s Aadhaar-linked mobile number or biometric verification (like fingerprints or iris scans) to confirm identity. This process is quick and requires no additional hardware.

On the other hand, DSC relies on a physical USB token that stores the user’s private key. To sign a document, the token must be connected to a computer, and the user has to input a unique PIN. While secure, this method involves additional steps and equipment.

Accessibility Aadhaar eSign is accessible to any Indian citizen with a valid Aadhaar number and a registered mobile number. No special hardware or software is required, making it a highly convenient and scalable solution.

In contrast, DSCs are issued by authorised Certifying Authorities and require the purchase of a USB token. The process to procure a DSC can take days and involves identity verification, making it less accessible compared to the Aadhaar eSign.

Security DSC offers a higher level of security because the private key used for signing is stored on a hardware device, ensuring it cannot be accessed remotely. This makes DSC ideal for high-value or sensitive transactions where data integrity is critical.

Aadhaar eSign, while secure, depends on the Aadhaar ecosystem and the robustness of OTP or biometric authentication. It is legally valid but may not meet the stringent security requirements of certain applications.

Cost Aadhaar eSign is typically cost-effective, with charges ranging from ₹20 to ₹50 per document or transaction. This affordability makes it an attractive option for individuals or small businesses.

DSC, on the other hand, requires an upfront cost to purchase the USB token, which can range from ₹500 to ₹2000, along with annual renewal fees. While more expensive, it is economical for frequent, bulk-signing scenarios.

Use Cases Aadhaar eSign is ideal for low-stakes, everyday transactions like signing consent forms, applications, or one-time contracts. Its simplicity and speed make it perfect for individuals and businesses with occasional signing needs.

DSCs are better suited for high-security applications, such as signing legal agreements, government filings, corporate compliance documents, and financial transactions. Their robust security and long-term usage make them indispensable for large organisations and professionals.

Comparison Table: Aadhaar eSign vs Digital Signature Certificates (DSC)

Feature	Aadhaar eSign	Digital Signature Certificate (DSC)
Authentication	Aadhaar-linked OTP or biometrics	USB token and PIN
Accessibility	Online, no hardware is required	Requires a physical USB token
Security	Secure but reliant on the Aadhaar ecosystem	High security; private key stored on a token
Cost	₹20–₹50 per document	₹500–₹2000 + annual renewal fees
Use Cases	Everyday signing, small businesses	Government filings, legal agreements
Procurement Time	Instant	2–7 days

Aadhaar eSign Or DSC: What’s Best For Your Business?

For businesses, the decision between Aadhaar eSign and Digital Signature Certificates (DSC) depends on the nature of transactions, document sensitivity, and the scale of operations. Both solutions cater to different business needs, and understanding their applicability can help you make the right choice.

Why Choose Aadhaar eSign For Your Business?

Aadhaar eSign is ideal for organisations seeking simplicity, scalability, and cost-effectiveness. Here’s why businesses should consider Aadhaar eSign:

Streamlined Customer Transactions: Aadhaar eSign is perfect for B2B processes requiring customer approvals, such as onboarding, loan agreements, or service contracts. With instant OTP-based authentication, it reduces the time taken to complete these processes.
Paperless Workflow: Businesses looking to eliminate paperwork can benefit greatly from Aadhaar eSign. Enabling clients, partners, and vendors to sign digitally, simplifies workflows and ensures timely execution of contracts.
Cost-Effective for High Volumes: Aadhaar eSign’s pay-per-use model makes it a cost-efficient choice for businesses processing large volumes of low-stakes documents, such as invoices, purchase orders, or employee forms.
Easy Integration with Existing Systems: Aadhaar eSign can be seamlessly integrated into your business’s existing digital platforms, such as CRM systems or ERP solutions, making it easier to deploy at scale.

Use Case For Aadhaar eSign
Imagine an HR firm managing employee background verification and offer letter issuance for multiple clients. Aadhaar eSign ensures that all documents are signed swiftly and securely without requiring physical follow-ups, improving operational efficiency.

Why Choose DSC For Your Business?

Digital Signature Certificates are essential for businesses handling high-security transactions or needing to meet compliance standards. Here’s why DSC is a better fit in certain scenarios:

Compliance with Legal Requirements: Businesses participating in government tenders or filing regulatory documents often need DSCs. For instance, GST filings, corporate tax returns, and MCA filings mandate DSC use.
Enhanced Security for Sensitive Transactions: When signing contracts involving large sums of money or sensitive information, DSC ensures unparalleled security. The physical USB token provides an added layer of trust and protection.
Bulk Signing Needs: For industries like finance and manufacturing, where businesses need to sign hundreds or thousands of documents daily (e.g., invoices or vendor agreements), DSC offers a robust and secure solution.

Use Case for DSC
A construction company bidding on government tenders requires a Class 3 DSC for its authorised signatory. The company also uses DSC to sign high-value project contracts, ensuring compliance and security.

Hybrid Approach For B2B Operations

Many businesses deal with a combination of high-stakes and everyday transactions. For example, a financial services company might use Aadhaar eSign for customer onboarding and loan approvals while relying on DSC for regulatory filings and contracts with corporate clients. Adopting both technologies ensures flexibility while meeting diverse needs.

Key Takeaway
If your business prioritises convenience, scalability, and affordability, Aadhaar eSign is a practical choice. For compliance-driven, high-security applications, DSC remains unmatched. Evaluate your document workflows and use cases to decide the best fit—or adopt both for maximum operational efficiency.

Why Choose AuthBridge For Aadhaar eSign?

When it comes to Aadhaar eSign, AuthBridge comes up as a trustworthy partner for businesses seeking seamless, secure, and scalable digital signing solutions. With nearly 2 decades of expertise in identity verification and background screening, AuthBridge has extended its capabilities to offer cutting-edge eSign solutions tailored for businesses of all sizes.

Advantages Of Using Aadhaar eSign With AuthBridge

End-to-End Digital Ecosystem
AuthBridge provides a complete digital document journey—from identity verification to electronic signing—all within one integrated platform. This ensures businesses can eliminate delays and reduce operational overheads.
Seamless Integration
AuthBridge’s Aadhaar eSign services are built to integrate effortlessly with existing business workflows, such as CRM, ERP, and HRMS systems. This adaptability allows businesses to quickly adopt eSign without disrupting operations.
Scalability for High-Volume Needs
AuthBridge’s platforms are designed to handle high transaction volumes, making them suitable for businesses managing bulk signing requirements. Whether you’re onboarding thousands of customers or signing vendor contracts, AuthBridge ensures a smooth experience.
Uncompromised Security
With state-of-the-art encryption and compliance with data privacy regulations, AuthBridge ensures that every document signed using Aadhaar eSign is secure, tamper-proof, and legally binding.
Cost-Effective Solutions
AuthBridge offers transparent and competitive pricing, enabling businesses to manage signing costs efficiently while delivering a superior customer experience.
Regulatory Compliance
AuthBridge’s Aadhaar eSign services comply with the provisions of the Information Technology Act, 2000, ensuring that every signature holds legal validity. This is particularly critical for businesses operating in highly regulated industries like BFSI and healthcare.

With solutions like SignDrive, AuthBridge empowers businesses to embrace paperless workflows. SignDrive combines Aadhaar eSign with advanced features like document tracking, multi-party signing, and real-time authentication, making it a comprehensive choice for B2B operations.
For example, consider a financial institution onboarding new corporate clients. AuthBridge’s Aadhaar eSign enables quick and secure contract execution without the need for in-person interactions. The result? Faster turnaround times, reduced paperwork, and enhanced client satisfaction.

FAQs

What is the difference between DSC and eSign?

DSC is a physical USB-based digital signature issued after physical verification, while eSign is an Aadhaar-based online signature requiring no hardware, both legally valid under the IT Act, 2000 for different use cases.

What is DSC or eSign mode?

DSC or eSign mode refers to the two legally recognized methods of digital signing—DSC involves using a USB-based digital signature certificate, while eSign is an Aadhaar-linked online signature method.

What is Aadhaar eSign?

Aadhaar eSign is an electronic signature service based on Aadhaar authentication, enabling users to sign documents digitally. It is legally valid under the Indian IT Act, 2000, and leverages Aadhaar-linked OTP or biometric verification for secure, paperless, and instant document signing.

What is the validity of DSC?

Digital Signature Certificates (DSCs) are typically issued with a validity of one or two years, as per the guidelines on the MCA website.

How to verify eSign in Aadhaar?

To verify an Aadhaar eSign, download the digitally signed document and open it in a PDF reader like Adobe Acrobat. Click the signature panel to view details and verify that the certificate is issued by any licensed Certifying Authority under the IT Act, 2000. Ensure the signature validity is marked as “Valid” in the software.

What is the validity of eSign?

Certifying Authorities issue Digital Signature Certificates to individuals after verifying their application credentials, with validity typically ranging from 2 to 3 years.

Is it safe to use eSign?

Yes, using eSign is safe when implemented through secure platforms compliant with legal frameworks like the IT Act, 2000 in India. It ensures document integrity, authenticity, and non-repudiation using Aadhaar-based authentication or other valid methods.

Is DSC compulsory?

A Digital Signature Certificate (DSC) is mandatory for certain categories, such as e-verification of returns filed by companies, political parties, and individuals whose accounts require auditing under Section 44AB of the Income Tax Act. For others, it is optional.

By Abhinandan, 4 monthsNovember 19, 2024 ago

BFSI

Aadhaar-Based eSign: All You Need To Know

In today’s tech-savvy world, where businesses and individuals rely heavily on electronic documentation, the need for secure, fast, and legally valid signing methods has grown multi-fold. Aadhaar-based eSign, an innovative electronic signature solution, is an important part of India’s digital transformation efforts. Introduced under the Digital India initiative, Aadhaar-based eSign enables citizens to sign documents electronically using their Aadhaar number and authentication, ensuring a seamless, paperless, and efficient process.

This technology is built on the Aadhaar framework, which is the largest biometric identification system globally, with over 1.2 billion registered users. The idea of linking eSignatures with Aadhaar helps to create a robust, trusted, and universally accepted system for secure document signing. It eliminates the need for physical signatures, making processes like contract signing, KYC, and tax filing faster and more efficient.

Aadhaar-based eSign is designed not only for individuals but also for businesses looking to streamline document workflows while ensuring compliance with India’s legal and regulatory frameworks.

How Aadhaar Powers eSignatures

Aadhaar-based eSignatures are built on the robust foundation of the Aadhaar infrastructure, leveraging its authentication mechanisms to enable secure and verifiable electronic signatures. The Aadhaar system’s extensive biometric database, which includes the fingerprints and iris scans of over a billion Indian citizens, plays a central role in ensuring the security and authenticity of the eSign process.

The Role Of Aadhaar In Enabling Secure eSignatures

The process of Aadhaar-based eSign is governed by a combination of Aadhaar authentication and the use of an Application Service Provider (ASP). Here’s a breakdown of how Aadhaar powers eSignatures:

Aadhaar Authentication: When a user initiates an eSign request, they are required to authenticate their identity using their Aadhaar number. The authentication can happen through one of two methods:
- OTP-based Authentication: The user receives a One-Time Password (OTP) on their registered mobile number linked to Aadhaar. Upon entering the OTP, the system validates the user’s identity.
- Biometric Authentication: For an even more secure option, the user can authenticate themselves by providing a biometric input, such as their fingerprint or iris scan, which is matched with the biometric data stored in the Aadhaar database.
Digital Signature Certificate (DSC): Once the authentication is successful, a Digital Signature Certificate (DSC) is issued on behalf of the user by a Certifying Authority (CA). This certificate is valid for one transaction and is used to sign the document electronically.
Document Signing: The document is then signed using the user’s Aadhaar-validated digital signature, ensuring that it is legally valid and tamper-proof. The digitally signed document is timestamped and contains a unique ID, making it traceable and secure.

Key Factors Ensuring Security And Compliance

Aadhaar-based eSignatures are designed to meet the highest security standards in line with India’s regulations. The following key aspects ensure their integrity:

Non-Repudiation: Since the eSign process is backed by Aadhaar authentication, users cannot deny having signed a document. The digital trail ensures accountability.
Encryption: During the eSign process, data is encrypted to protect sensitive information from being intercepted.
Legal Validity: Aadhaar eSignatures are compliant with the Information Technology Act, 2000, and are recognised as legally valid in Indian courts.

Through Aadhaar’s wide reach and secure infrastructure, eSignatures have become a game-changer for both businesses and individuals, making the entire documentation process smoother, faster, and more secure.

Key Features Of Aadhaar eSign

Paperless and Contactless: The Aadhaar eSign process is entirely digital, eliminating the need for physical paperwork and in-person signatures. This is particularly beneficial in a world increasingly moving towards contactless transactions, reducing delays and saving time.
Easy Accessibility: With Aadhaar eSign, users can authenticate and sign documents from anywhere at any time, provided they have access to the internet and their Aadhaar-registered mobile number. This flexibility ensures that users are not bound by geographical limitations.
Secure Authentication: Aadhaar eSign uses multi-factor authentication, ensuring a high level of security. The combination of OTP or biometric data and Aadhaar verification makes it nearly impossible for unauthorised individuals to forge signatures.
Legally Compliant: Aadhaar eSign complies with Indian laws, specifically the Information Technology Act, 2000. Documents signed using Aadhaar eSign hold the same legal validity as those signed using traditional methods.
Instantaneous Process: The process of Aadhaar-based eSign is instantaneous, providing real-time document signing and verification. This greatly reduces turnaround times for businesses, especially in sectors such as banking, insurance, and legal services.
Environmentally Friendly: By eliminating the need for physical paperwork, Aadhaar eSign contributes to sustainability efforts. Reduced paper usage means less waste and a lower environmental impact.

How Does Aadhaar eSign Work?

Aadhaar-based eSign is designed to be user-friendly, secure, and highly efficient. By leveraging Aadhaar’s robust authentication system, individuals and businesses can digitally sign documents in just a few steps. Below is a step-by-step guide to the Aadhaar eSign process:

Document Upload
The process begins when the user or organisation uploads the document that requires signing onto the platform provided by an authorised Aadhaar eSign provider. This could be anything from a contract, a government form, or a financial agreement.
Aadhaar Authentication Initiation
Once the document is uploaded, the signer initiates the Aadhaar authentication process. This can be done through two primary methods:
- OTP-based Authentication: The system sends a One-Time Password (OTP) to the mobile number linked with the user’s Aadhaar. The user must enter this OTP into the eSign interface to verify their identity.
- Biometric Authentication: The user provides their biometric data (fingerprint or iris scan), which is then matched against the data stored in the Aadhaar database.
Digital Signature Certificate Generation
After the user’s Aadhaar credentials have been authenticated, a Digital Signature Certificate (DSC) is issued by a Certifying Authority (CA). This certificate is valid only for the specific transaction and document being signed. It ensures the integrity and authenticity of the eSign process.
Signing the Document
With the DSC issued, the system then applies the Aadhaar-verified digital signature to the document. The signature is tamper-proof and includes a timestamp to indicate the exact time of signing.
Document Download and Verification
The signed document is made available for download by the user or can be automatically sent to relevant parties. The digital signature embedded within the document can be easily verified by any recipient to confirm the authenticity of the signer.

Applications Of Aadhaar eSign Across Industries

Aadhaar-based eSign is changing the way various sectors in India handle documentation. By providing a legally valid, paperless, and efficient method for signing documents, Aadhaar eSign is streamlining workflows across industries, driving both operational efficiency and compliance. Let’s explore some of the key industries where Aadhaar eSign is making a significant impact.

Banking And Financial Services

The banking and financial services industry relies heavily on extensive documentation for activities such as loan approvals, account openings, and customer onboarding. Aadhaar eSign has transformed these processes by:

Simplifying KYC (Know Your Customer): Banks can use Aadhaar-based eSign to verify customer identities digitally, speeding up KYC processes and reducing the need for physical verification.
Streamlining Loan Approvals: Loan documents can now be signed digitally, cutting down on paperwork and enabling quicker approvals.
Improving Customer Experience: Customers can open accounts, sign agreements, and complete transactions remotely, without visiting a branch.

Healthcare

In healthcare, where the timely and secure exchange of sensitive information is crucial, Aadhaar eSign offers a robust solution. It is being used for:

Patient Registration and Consent: Hospitals and clinics can securely capture patient consent and registration forms using Aadhaar eSign, reducing manual errors and delays.
Medical Records Management: Aadhaar eSign ensures that medical records, including prescriptions and reports, are securely signed and stored electronically, ensuring privacy and traceability.

Government And Public Services

The Indian government’s Digital India initiative has embraced Aadhaar eSign to facilitate the delivery of e-governance services. Key applications include:

E-Governance Schemes: Citizens can apply for services like subsidies, pension schemes, and social welfare benefits online, with Aadhaar eSign ensuring authenticity.
Tax Filings: The Income Tax Department allows taxpayers to e-file their returns and digitally sign them using Aadhaar eSign, streamlining the process.
Subsidy Disbursements: Government departments can ensure faster and authenticated distribution of subsidies and benefits by using Aadhaar-based digital signatures.

Insurance

Insurance companies have traditionally relied on time-consuming paperwork for policy issuance, claims, and renewals. Aadhaar eSign offers a paperless alternative:

Policy Issuance: New insurance policies can be digitally signed by customers using Aadhaar eSign, speeding up the approval process.
Claims Processing: Claims can be filed and digitally signed by policyholders, reducing processing times and improving customer satisfaction.

Education

In the education sector, Aadhaar eSign is increasingly being used for:

Student Enrolment: Aadhaar eSign facilitates paperless student enrolment processes for schools and universities, reducing administrative overhead.
Examination Forms and Certificates: Examination boards can digitally sign and distribute certificates and other documents, ensuring their authenticity.

Real Estate

The real estate industry, known for its cumbersome paperwork related to property agreements, can benefit greatly from Aadhaar eSign:

Lease and Property Agreements: Tenants and landlords can use Aadhaar eSign to sign rental or property agreements digitally, reducing legal complexities.
Title Deeds and Registrations: Aadhaar-based eSign can help in securely signing title deeds and other property-related documents.

Legal Validity Of Aadhaar eSign

Aadhaar-based eSign is recognised as a legally valid form of electronic signature in India, supported by robust regulations that ensure its compliance with the country’s legal framework. This section delves into the legal standing of Aadhaar eSign, along with the regulatory guidelines that govern its use across various industries.

Regulatory Framework For Aadhaar eSign

The legal foundation for Aadhaar eSign stems from the Information Technology Act, 2000 (IT Act), which provides a comprehensive framework for the recognition of electronic signatures in India. Under the provisions of the IT Act, electronic signatures are considered valid if they meet certain criteria:

Authenticity: The eSign must be uniquely linked to the signatory and capable of identifying them.
Control: The signatory must have complete control over the electronic signature at the time of signing.
Integrity: Any alterations made to the signed document must be detectable.

Aadhaar eSign, through its OTP and biometric authentication processes, meets these criteria and is legally valid for most official and legal purposes in India.

Certifying Authorities and Compliance

The issuance of Digital Signature Certificates (DSCs) in the Aadhaar eSign process is regulated by Certifying Authorities (CAs), which are licensed by the Controller of Certifying Authorities (CCA) under the Ministry of Electronics and Information Technology (MeitY). These CAs are responsible for ensuring that the issuance of digital certificates complies with India’s strict data protection and security regulations.

The combination of Aadhaar authentication and DSCs issued by licensed CAs ensures that Aadhaar-based eSignatures are secure, legally binding, and tamper-proof.

Aadhaar eSign and the IT Act, 2000

The IT Act, 2000, specifically addresses the use of electronic signatures, placing them on an equal legal footing with traditional handwritten signatures. Section 5 of the IT Act states that any electronic signature that meets the requirements laid out in the law will be treated as valid and enforceable.

Furthermore, Section 10A of the IT Act ensures that contracts signed electronically are considered valid, provided they follow the prescribed standards. This gives businesses the confidence to use Aadhaar eSign for contractual agreements, knowing that these documents will hold up in a court of law.

What documents can you eSign using Aadhaar?

You can use Aadhaar-based eSign to electronically sign a wide range of documents in India. Here’s a list of some common types of documents that can be eSigned using Aadhaar:

1. Business and Legal:

Employment contracts, NDAs, and vendor agreements.

2. Financial:

Loan agreements, insurance policies, and tax filings.

3. Government Forms:

GST registration, income tax returns, and EPF forms.

4. Educational:

Enrollment forms and scholarship applications.

5. Healthcare:

Consent forms and insurance claims.

6. Real Estate:

Lease and rental agreements.

7. Human Resources:

Offer letters and onboarding forms.

8. Utility Services:

Applications for electricity, gas, and internet.

Compliance And Data Protection

Aadhaar-based eSign operates within India’s Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, which governs the use of Aadhaar numbers for identity verification. The Act provides clear guidelines on data protection, ensuring that sensitive personal information, including biometrics and Aadhaar numbers, is securely handled and protected during the eSign process.

The General Data Protection Regulation (GDPR) and India’s proposed DPDP Bill also align with the security measures taken during the Aadhaar-based eSign to protect user data and maintain privacy standards.

Benefits of using Aadhaar eSign

Multi-Factor Authentication Aadhaar-based eSign ensures that only authorised individuals can sign documents by using multi-factor authentication (MFA). This authentication occurs in two primary forms:
- OTP Authentication: A One-Time Password (OTP) is sent to the user’s mobile number registered with Aadhaar. The user must enter the OTP to authenticate the eSign process.
- Biometric Authentication: Users can also authenticate using their biometric data, such as fingerprints or iris scans, matched against the Aadhaar database. This adds an extra layer of security by ensuring the signer’s physical presence during the transaction.
End-to-End Encryption All data transmitted during the Aadhaar eSign process is encrypted, ensuring that sensitive information is protected from unauthorised access. This encryption secures:
- Document Data: The document being signed is encrypted to prevent tampering.
- Aadhaar Information: Personal details such as the Aadhaar number, biometrics, and OTP data are encrypted both during transmission and at rest.
Digital Signature Certificate (DSC) Once the signatory has been authenticated, a Digital Signature Certificate (DSC) is issued for the transaction. This certificate is valid only for the particular document being signed, ensuring that it cannot be misused for other transactions. The DSC also ensures the integrity of the document by detecting any alterations made after signing.
Tamper-Proof Signatures: Aadhaar eSign process creates a tamper-evident seal on the document, which prevents any alterations after the signature is applied. This digital trail guarantees that the document remains unchanged, further adding to its credibility.
Audit Trail Every Aadhaar eSign transaction generates a detailed audit trail, documenting when and by whom the document was signed. This audit trail is crucial for ensuring non-repudiation, as it provides verifiable proof of the signing event.
Compliance with Data Protection Laws Aadhaar eSign complies with stringent data protection regulations, including those outlined in the Aadhaar Act and the IT Act, 2000. Additionally, the upcoming Personal Data Protection Bill (PDP) ensures that organisations using Aadhaar eSign for document signing must follow robust privacy guidelines to protect users’ personal information.

Privacy Concerns And How Aadhaar eSign Addresses Them

While Aadhaar eSign offers a host of benefits, privacy concerns naturally arise due to the sensitive nature of Aadhaar data. To address these concerns, several safeguards have been put in place:

Minimal Data Usage: Only essential data, such as the Aadhaar number and the OTP or biometric input, is used during the eSign process. No unnecessary information is collected or stored.
Anonymity: The system does not store Aadhaar biometrics or OTPs after the transaction is completed. This prevents the misuse of data and ensures that users’ privacy is respected.
User Consent: Aadhaar eSign processes require explicit user consent before any document is signed, ensuring that individuals retain full control over their digital identity.

Aadhaar eSign vs. Traditional Signatures

Aadhaar-based eSign has emerged as an outstanding alternative to traditional signatures, offering a faster, more secure, and convenient way to authenticate documents. In this section, we will conduct a comparative analysis between Aadhaar eSign and traditional signatures to highlight why Aadhaar eSign is considered the future of secure documentation.

Table: Aadhaar eSign vs. Traditional Signatures

Aspect	Traditional Signatures	Aadhaar eSign
Speed and Convenience	Requires physical presence, time-consuming	Instant signing from anywhere, highly convenient
Cost-Effectiveness	Costs include printing, courier, storage	Completely paperless, reduces expenses significantly
Security and Fraud Prevention	Prone to forgery, difficult to verify authenticity	Multi-factor authentication, encrypted, highly secure
Legal Validity	Legally valid, but may require witnesses or verification	Legally valid under the IT Act, non-repudiable, secure verification
Document Integrity	Can be altered or tampered with post-signing	Tamper-proof, any changes post-signing are detectable
Environmental Impact	Involves paper usage, contributes to environmental waste	Paperless, environmentally friendly

Conclusion

In today’s fast-paced, digital-first world, Aadhaar-based eSign offers a solution that meets the needs of modern businesses and individuals. Its advantages in terms of speed, security, cost-effectiveness, and legal standing make it an ideal alternative to traditional signatures.

FAQs around Aadhaar-based eSigning

How to get Aadhaar based eSign?

To get Aadhaar-based eSign:

Link Aadhaar with Mobile: Ensure your Aadhaar is linked to your mobile number for OTP verification.
Choose an eSign Service Provider (ESP): Use an authorized ESP like AuthBridge.
Register: Sign up on the ESP’s platform or a third-party portal offering eSign services.
Upload Document: Upload the document to be signed.
Enter Aadhaar Number: Input your Aadhaar number for authentication.
Receive OTP: Enter the OTP sent to your Aadhaar-linked mobile.
eSign Document: Complete the process by digitally signing the document.

What is Aadhaar based e signature or DSC mode?

Aadhaar-based e-signature (or DSC mode) is an electronic signing method using your Aadhaar number. It involves authenticating your identity through an OTP sent to your Aadhaar-linked mobile number. The signature is legally valid under the Indian IT Act, 2000, and is facilitated by government-approved eSign Service Providers (ESPs). This digital signature ensures security and convenience for signing documents remotely.

Is Aadhaar eSign safe?

Yes, Aadhaar eSign is safe. It uses two-factor authentication (Aadhaar number and OTP) to securely verify your identity, and the process is governed by the Indian IT Act, 2000. The eSign is facilitated by government-authorised providers, ensuring the integrity and security of your digital signature.

Are eSign and DSC the same?

No, eSign and DSC (Digital Signature Certificate) are not the same. eSign is an Aadhaar-based electronic signature that uses OTP for authentication, offering a quick and easy way to sign documents. DSC is a physical certificate issued to individuals or organizations, stored on a USB token, and requires installation and specific software for use.

How can I make my Aadhar card digital signature?

To create a digital signature using your Aadhaar card:

Link Aadhaar with Mobile: Ensure your mobile number is linked to Aadhaar for OTP verification.
Choose an eSign Service Provider (ESP): Select an authorized ESP like eMudhra, NSDL, or C-DAC.
Upload Document: Upload the document you want to sign on the ESP platform or a third-party portal.
Authenticate with Aadhaar: Enter your Aadhaar number and verify your identity with the OTP sent to your registered mobile number.
eSign the Document: Once verified, your Aadhaar-based digital signature will be applied.

Is Aadhaar valid without digital signature?

Yes, Aadhaar is valid without a digital signature for identity verification purposes. However, for signing documents electronically or performing secure digital transactions, a digital signature (e.g., Aadhaar-based eSign) is required to authenticate and ensure legal validity under the IT Act, 2000.

Is Aadhaar eSign free?

Aadhaar eSign is not entirely free. While some platforms may offer limited free usage, most eSign service providers charge a nominal fee for the service. Pricing varies depending on the provider and the number of documents you sign.

What is Aadhaar digital signature called?

Aadhaar digital signature is called Aadhaar-based eSign. It is an electronic signature service that uses Aadhaar authentication, typically verified via OTP, to sign documents digitally.

By Abhinandan, 6 monthsSeptember 10, 2024 ago

Background Checks

UIDAI Extends Free Aadhaar Update Deadline Till September 14, 2024

The Unique Identification Authority of India (UIDAI) has announced an extension for the free update of Aadhaar details, with the new deadline set for September 14, 2024. This extension provides precious time for residents to ensure their Aadhaar information is up-to-date without incurring any fees, as post-deadline updates will be charged. With Aadhaar being the foundation for identity verification in India, keeping your details accurate and current is crucial for accessing various services and benefits.

Extension Of The Free Aadhaar Update Deadline

The UIDAI’s decision to extend the deadline for free Aadhaar updates until September 14, 2024, is a significant relief for millions of citizens. Initially set to expire earlier, the deadline has been extended to provide adequate time for individuals to update their biometric and demographic details. The extension is particularly important for those who may have had their Aadhaar issued more than ten years ago and have not updated their details since.

The free update applies to updates made through the myAadhaar portal, while updates made at Aadhaar centres will incur a fee of ₹50 after the deadline. This extension is also a response to the growing need for accurate data, especially as Aadhaar is increasingly being used for financial transactions and other sensitive operations.

The Importance Of Updating Aadhaar

Aadhaar, a 12-digit unique identity number issued by the UIDAI, is linked to various government schemes, banking services, and even mobile connections. Therefore, having accurate details in your Aadhaar profile is essential to avoid any interruptions in accessing these services. The UIDAI periodically requires biometric and demographic details updates to maintain the integrity of the Aadhaar database.

How To Update Aadhaar Details?

Updating Aadhaar details is a straightforward process that can be done either online or offline. Here’s how you can update your information:

Online Update Via myAadhaar Portal

Access the Portal: Visit the myAadhaar portal at https://myaadhaar.uidai.gov.in
Login: Use your Aadhaar number and OTP sent to your registered mobile number to log in
Select Update Section: Navigate to the ‘Update Your Aadhaar’ section
Choose the Details to Update: You can update your demographic details like name, address, date of birth, gender, mobile number, and email address
Upload Supporting Documents: For changes in name, address, or date of birth, upload the necessary documents as proof
Submit the Request: Review your details and submit the update request

Offline Update At Aadhaar Centres

Locate a Centre: Find the nearest Aadhaar enrolment or update centre.
Visit the Centre: Carry original documents for verification and submission.
Fill Out the Update Form: Provide details of the changes you wish to make.
Submit Documents: Provide the necessary documents as proof for demographic updates.
Biometric Update: Your fingerprints, iris, and photographs will be captured again for biometric updates.
Pay the Fee: After September 14, a fee of ₹50 will be applicable for any updates done at the centre.

Different Types Of Aadhaar Updates

Understanding the types of updates and their associated costs can help in planning the update process:

Biometric Update

For Children (Aged 5-7 and 15-17 Years): Free if done within the specified age brackets.
Otherwise: ₹100 fee for any other biometric updates.

Demographic Update

If Done with Biometric Update: Free.
If Done Separately: ₹50 fee.

Document Update

Online (Till September 14, 2024): Free.
At Aadhaar Centre: ₹50 fee.

If you fail to update your Aadhaar details before the September 14 deadline, you’ll need to pay ₹50 per update for demographic or document changes and ₹100 for biometric updates. This penalty is designed to encourage timely updates and ensure that the Aadhaar database remains accurate and reliable.

By Abhinandan, 7 monthsSeptember 3, 2024 ago

Background Checks

Centre Allows UPSC To Verify Candidates Using Aadhaar

In a first-of-its-kind decision, the Union Public Service Commission (UPSC) has been authorised by the central government to implement Aadhaar-based authentication for verifying candidates’ identities voluntarily during various stages of its examination and recruitment processes. This move comes after the controversy surrounding Puja Khedkar, a probationary IAS officer from the Maharashtra cadre, whose candidature was cancelled due to allegations of identity fraud and misuse of reserved category quotas. Adopting Aadhaar KYC (Know Your Customer) by the UPSC is a significant step towards ensuring the integrity and transparency of one of India’s most prestigious examinations.

Government’s Decision On Aadhaar-based Authentication For UPSC

According to a formal notification issued by the Department of Personnel and Training (DoPT) yesterday: “…Ministry of Personnel, Public Grievances and Pensions, Department of Personnel and Training, having been authorized by the Central Government, hereby notifies that the Union Public Service Commission (UPSC) is allowed to perform Aadhaar authentication, on a voluntary basis, for verification of the identity of candidates at the time of registration on ‘One Time Registration’ portal and various stages of examination/recruitment test, using Yes/No or/and e-KYC authentication facility.”

The UPSC conducts 14 major exams annually, including the Civil Services Examination, which selects candidates for the Indian Administrative Service (IAS), Indian Foreign Service (IFS), and Indian Police Service (IPS). Given the stakes involved, maintaining the integrity of these exams is extremely important. This decision to allow Aadhaar-based authentication is seen as a direct response to incidents of fraud, such as the case involving Puja Khedkar.

The Puja Khedkar Case

The Puja Khedkar case serves as a pressing reminder of the vulnerabilities in the current system. Khedkar’s actions not only undermined the integrity of the Civil Services Examination but also highlighted the need for more stringent identity verification measures. Her case, which involved the misuse of quotas and the manipulation of identity to gain an unfair advantage, has had a significant impact on the UPSC’s approach to candidate verification.

The decision to implement Aadhaar-based authentication can be seen as a direct consequence of the Khedkar case. By adopting this technology, the UPSC is taking a firm stand against identity fraud and ensuring that its recruitment processes are conducted with the highest standards of fairness.

Khedkar, who was provisionally allotted to the Indian Administrative Service (IAS) for the 2023 batch, was found to have fraudulently availed herself of additional attempts in the Civil Services Examination by manipulating her identity. She also allegedly misused disability and Other Backward Classes (OBC) non-creamy layer quotas. As a result, her candidature was cancelled, and she was barred from all future UPSC examinations.

The UPSC’s adoption of Aadhaar KYC is a proactive measure to prevent such cases in the future. By using Aadhaar verification, including Aadhaar biometric verification and Aadhaar data verification, the UPSC aims to ensure that only legitimate candidates can participate in its exams. This move will help uphold the fairness and credibility of the UPSC recruitment process.

What Is Aadhaar KYC?

Aadhaar KYC involves the use of a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). This number is linked to an individual’s biometric and demographic data, which can be verified through Aadhaar authentication. The UPSC will utilise both Yes/No authentication, which confirms the validity of an Aadhaar number, and eKYC authentication, which provides detailed demographic and biometric information for verification.

The UPSC, recently, also issued a tender inviting public sector undertakings to develop these two technological solutions for its examination process: “Aadhaar-based fingerprint authentication (else digital fingerprint capturing) and facial recognition of candidates and QR code scanning of e-admit cards” and “Live AI-based CCTV surveillance service.”

Also Read:

New Criminal Laws Of India
Police Verification In India
How To Check Passport Status In 2024

AuthBridge’s Instant Aadhaar Verification API For Enterprises

Whether it’s a factory hiring gig workers, a recruitment firm verifying employees, an examination firm verifying candidates or a bank onboarding customers, Aadhaar Verification is essential for preventing identity fraud and ensuring the right people are hired.
Leverage our API to authenticate Aadhaar card details with precision by validating demographic data and performing biometric authentication against the Aadhaar database. Our solution guarantees the accuracy and integrity of individual information, making it a dependable choice for businesses.

KYC Compliance For Enterprises

Optimize your KYC process with our Aadhaar Verification API. Seamlessly extract and verify critical Aadhaar data to ensure compliance with regulatory requirements, accelerate onboarding, and enhance the customer experience. Our API solution simplifies due diligence, offering a reliable tool for your business.

Advanced Fraud Detection For Businesses

Our API incorporates sophisticated fraud detection mechanisms to identify and mitigate suspicious activities during verification and KYC processes. By utilizing techniques such as face matching, document tampering detection, and data consistency checks, it ensures secure and trustworthy authentication for your enterprise.

By Abhinandan, 7 monthsAugust 29, 2024 ago

BFSI

All You Need To Know About Aadhaar-based EKYC

With the rise in globalisation and the digital age, efficient and secure identity verification systems have become essential for businesses, governments, and individuals alike. Aadhaar-based eKYC (Electronic Know Your Customer) has emerged as a revolutionary solution in India, simplifying identity authentication processes for sectors like banking, telecom, insurance, and more. This digital solution leverages Aadhaar, the world’s largest biometric identification system, to offer a secure, paperless, and cost-effective means of verifying an individual’s identity.

What Is Aadhaar-Based eKYC?

Aadhaar-based eKYC (Electronic Know Your Customer) is a digital process designed to authenticate and verify an individual’s identity using the Aadhaar database. It eliminates the need for physical documents, relying instead on the biometric and demographic data associated with the unique Aadhaar number. This digital verification is fast, secure, and paperless, making it ideal for industries where customer identity verification is a legal or regulatory requirement.

The system works by accessing the Aadhaar database, maintained by the Unique Identification Authority of India (UIDAI). The Aadhaar-based eKYC system facilitates seamless Aadhaar verification and Aadhaar authentication, enabling real-time verification through Aadhaar biometric verification using fingerprints, facial recognition, or iris scans. From applying for a mobile connection to opening a bank account, Aadhaar eKYC is becoming an important tool for businesses across industries.

How Does Aadhaar-Based eKYC Work?

User Consent: The individual provides their Aadhaar number and consents to share their Aadhaar-linked data.
Aadhaar Authentication: The requesting entity sends an authentication request to the UIDAI, which verifies the biometric data (fingerprint or iris scan) or demographic information provided by the individual.
eKYC Data Sharing: Upon successful authentication, the UIDAI shares the eKYC data (name, address, photograph, etc.) with the service provider for further processing.

Example:

A customer applying for a new mobile connection can provide their Aadhaar number to the telecom provider. By completing Aadhaar-based eKYC, the customer’s details are instantly verified, eliminating the need for submitting physical ID documents.

Benefits Of Aadhaar-Based eKYC

Speed And Efficiency

Aadhaar-based eKYC significantly reduces the time required to verify customer identities. Traditional KYC processes involve physical paperwork, photocopies, and manual verification, often taking days or even weeks. With Aadhaar eKYC, the process is completed in minutes, providing businesses with an edge in customer service and improving overall efficiency.

Cost-Effective

The elimination of paper-based documentation results in reduced operational costs. For sectors like banking, where KYC compliance is critical, switching to Aadhaar paperless KYC can reduce paperwork costs by over 80%. This digital solution also saves businesses from storage and handling expenses associated with physical documents.

Enhanced Security

Aadhaar-based eKYC offers enhanced security through biometric authentication. With fingerprint and facial recognition verification, it becomes extremely difficult for fraudsters to falsify identities. The unique Aadhaar number linked with a person’s biometric data ensures that only the authorised individual can complete the KYC process.

Compliance with Regulatory Standards

Aadhaar eKYC complies with India’s stringent regulations, like the upcoming DPDP act, around identity verification, making it a legal and robust solution for businesses in industries like finance, telecom, and insurance. The UIDAI ensures data security and user privacy in line with government standards.

Use Cases Of Aadhaar-Based eKYC Across Industries

1. Aadhaar KYC for Banks

Banks are legally required to verify the identity of their customers for account opening, loan processing, and other services. Aadhaar-based eKYC simplifies this by allowing banks to authenticate customers remotely. For instance, major banks in India use eKYC to open new savings accounts or process loans in real-time.

2. Aadhaar KYC for Telecom

Telecom companies leverage Aadhaar KYC for mobile connections, enabling quick and seamless onboarding of customers. For example, when applying for a new SIM card, customers can provide their Aadhaar details and instantly complete the KYC process without submitting any physical documents.

3. Aadhaar KYC for Financial Services and Mobile Wallets

For mobile wallets and digital financial services, Aadhaar-based eKYC enables secure and quick onboarding of customers. Many fintech platforms and e-payment aggregators use this system to verify users’ identities, making digital transactions more secure and seamless.

Legal And Regulatory Aspects Of Aadhaar-Based eKYC

The adoption of Aadhaar-based eKYC in India is guided by several legal frameworks and regulatory guidelines that ensure its secure and lawful usage. The primary regulatory body overseeing Aadhaar operations and usage is the Unique Identification Authority of India (UIDAI). Various laws and directives have been enacted to protect user data, ensure transparency in the eKYC process, and prevent misuse.

Regulatory Guidelines by UIDAI

UIDAI is responsible for managing the Aadhaar system and ensuring the privacy and security of citizens’ data. It has issued clear guidelines for businesses and service providers that use Aadhaar for identity verification. Some of these regulations include:

Data Security: Companies must ensure that the Aadhaar data they handle is encrypted and stored securely. Sharing of Aadhaar data without consent is prohibited.
User Consent: Aadhaar-based eKYC can only be conducted with explicit consent from the user. This includes the individual agreeing to share their biometric data and Aadhaar number for verification.
Aadhaar Authentication Regulations: Businesses and service providers must use the Aadhaar authentication APIs provided by the UIDAI for secure transactions. This ensures that the eKYC process is tamper-proof and compliant with government standards.

Aadhaar and the Supreme Court of India

In 2018, the Supreme Court of India delivered a landmark judgment regarding the usage of Aadhaar. The court ruled that while Aadhaar was constitutional, its use must be regulated to protect individual privacy. According to the verdict:

Aadhaar is mandatory for availing of government benefits and subsidies.
It is not mandatory for services like obtaining SIM cards or opening bank accounts, though many private companies continue to use Aadhaar-based eKYC for its efficiency.

This ruling ensures that Aadhaar-based eKYC is not misused by private organisations and that citizens retain control over how their Aadhaar data is used.

Security and Privacy Concerns Around Aadhaar eKYC

While Aadhaar-based eKYC has revolutionised identity verification, there are ongoing concerns regarding data security and user privacy. With biometric and demographic data being sensitive, any breach could result in identity theft, financial fraud, or misuse of personal information.

Biometric Data Security

Aadhaar-based eKYC relies heavily on biometric authentication, including fingerprint scans and facial recognition. The UIDAI ensures that biometric data is encrypted and stored securely. However, the risk of biometric data leaks or hacking has raised concerns, as this data cannot be changed, unlike passwords or PINs.

User Consent and Control

The regulatory framework ensures that Aadhaar-based eKYC can only be conducted with the individual’s consent. However, concerns around informed consent still exist, as many users may not fully understand the implications of sharing their biometric and demographic information. Ensuring greater transparency around how user data is handled, stored, and processed is crucial for building trust.

Preventing Data Misuse

Aadhaar’s database is centralised, and despite rigorous security measures by UIDAI, any breach could have wide-reaching effects. Hence, regular audits, monitoring, and strict penalties for data misuse have been enforced to safeguard user data.

The UIDAI maintains the Aadhaar Data Vault, a secure storage system where Aadhaar numbers are stored in encrypted form. This system ensures that sensitive data is not vulnerable to hacking attempts. Additionally, the UIDAI offers a Virtual ID (VID) system, allowing users to share a temporary 16-digit virtual ID instead of their Aadhaar number for authentication, thereby adding an extra layer of security.

By admin, 5 yearsDecember 6, 2019 ago

Employee Screening

Risk & Compliance

Financial Intelligence

Identity Verification

Utilities

Entity/Business Level

Employment

Banking & Payments

Fraud Detection

Professional

Background Verification

Due-Diligence

Title Menu Three

What's New

iBRIDGE 2.0 – The Next-Gen Background Verification Platform

Resource Library

Featured Resource

Aadhaar

Expanding Aadhaar Authentication For Ease Of Living

Streamlined Approval Process For Aadhaar Authentication Requests

Impact On Governance, Innovation, And Service Delivery

The Role of Identity Verification In The New Framework

Conclusion

What Is Aadhaar eSign?

Key Features Of Aadhaar eSign

What Is A Digital Signature Certificate (DSC)?

Key Features Of Digital Signature Certificates

Differences Between Aadhaar eSign And Digital Signature Certificates (DSC)

Aadhaar eSign Or DSC: What’s Best For Your Business?

Why Choose Aadhaar eSign For Your Business?

Why Choose DSC For Your Business?

Hybrid Approach For B2B Operations

Why Choose AuthBridge For Aadhaar eSign?

Advantages Of Using Aadhaar eSign With AuthBridge

FAQs

How Aadhaar Powers eSignatures

The Role Of Aadhaar In Enabling Secure eSignatures

Key Factors Ensuring Security And Compliance

Key Features Of Aadhaar eSign

How Does Aadhaar eSign Work?

Applications Of Aadhaar eSign Across Industries

Banking And Financial Services

Healthcare

Government And Public Services

Insurance

Education

Real Estate

Legal Validity Of Aadhaar eSign

Regulatory Framework For Aadhaar eSign

Certifying Authorities and Compliance

Aadhaar eSign and the IT Act, 2000

What documents can you eSign using Aadhaar?

1. Business and Legal:

2. Financial:

3. Government Forms:

4. Educational:

5. Healthcare:

6. Real Estate:

7. Human Resources:

8. Utility Services:

Benefits of using Aadhaar eSign

Privacy Concerns And How Aadhaar eSign Addresses Them

Aadhaar eSign vs. Traditional Signatures

Table: Aadhaar eSign vs. Traditional Signatures

Conclusion

FAQs around Aadhaar-based eSigning

Extension Of The Free Aadhaar Update Deadline

The Importance Of Updating Aadhaar

How To Update Aadhaar Details?

Online Update Via myAadhaar Portal

Offline Update At Aadhaar Centres

Different Types Of Aadhaar Updates

Government’s Decision On Aadhaar-based Authentication For UPSC

The Puja Khedkar Case

What Is Aadhaar KYC?

Also Read:

AuthBridge’s Instant Aadhaar Verification API For Enterprises

KYC Compliance For Enterprises

Advanced Fraud Detection For Businesses

What Is Aadhaar-Based eKYC?