AAGG Rules 2023: MeitY seeks to allow ‘any entity’ to take up Aadhaar authentication

The new proposed amendments now essentially expand the ambit of entities who can do Aadhaar authentication from ministries and departments in the Centre and States to "any entities".

Ministry of Electronics and Information Technology (MeitY) is seeking to allow 'any entity' to undertake Aadhaar authentication in a bid to "promote ease of living residents and enabling better access to services for them", the draft amendments to the Aadhaar Authentication for Good Governance Rules (AAGG), released for consultation on April 20 said.

The proposed new amendment says that "any entity other than the Ministry or Department" can prepare a proposal justifying the necessity for Aadhaar  authentication and submit to the concerned ministry or department of the appropriate government.

The draft does not make clear whether "any entity" refers to just government bodies such as PSUs, or whether it also includes private bodies.

While the Aadhaar judgement, does not allow authentication of Aadhaar by private parties, experts pointed out that subsequent amendments to the Act in 2019 do pave the way for the same. However, these amendments are facing a legal challenge.

"Through an amendment enacted in 2019 to the Aadhaar Act, 2016, it was provided under section 4(4) of the Act that entities may be allowed to perform authentication if the UIDAI is satisfied that the requesting entity is compliant with standards of privacy and security specified by regulations and is permitted by law to offer authentication services or seeks authentication for a prescribed purpose," the notice by MeitY inviting comments on the draft said.

The AAGG Rules was originally introduced  in 2020, the Government stated, to prevent leakage of public funds, in interest of good governance and so on. However, the rules were criticised of being in violation of Supreme Court's Aadhaar Judgement, and that it exceeded the limits of the Aadhaar Act.

The new proposed amendments now essentially expand the ambit of entities who can do Aadhaar authentication from ministries and departments in the Centre and States to others.

The draft says that after one such entity has submitted their proposal to use such authentication to the concerned ministry, that particular ministry or department will assess their application and determine whether their reasoning to use such authentication fulfills the provisions of the rules. They will then relay their decision to the UIDAI, who will take a final call on the matter.