AADHAAR ACCESS RESTRICTIONS AND WELFARE EXCLUSION

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Picture Courtesy:  The Hindu

Context

Assam Government's decision to pause the Aadhaar registration could directly exclude vulnerable citizens from welfare benefits and essential services.

What is Aadhaar Card?

It is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to every individual resident of India.

• Aadhaar is not a citizenship document.
• Foreigners residing in India for more than 182 days in the last 12 months can also apply for an Aadhaar Card.

Information Collected: Aadhaar combines individual's biometric and demographic information.

• Demographic information includes the applicant's full name, date of birth or age, gender, address, mobile number, and email ID.
• Biometric information includes ten fingerprints, two iris scans, and a facial photograph.

The Aadhaar program was launched in 2009, initially voluntary, it became essential for accessing government subsidies (like LPG and PDS), financial inclusion (opening bank accounts, eKYC), phone connections, income tax filings (linking with PAN), passport applications, and various other government services and welfare schemes.  

It forms the backbone of India's digital public infrastructure and is a key pillar of the JAM Trinity (Jan Dhan–Aadhaar–Mobile), which helps in direct benefit transfers.

Extensive Coverage: As of August 2025, around 142.77 crore, Aadhaar numbers are generated. (Source: Aadhar Dashboard)

Legal Framework of Aadhaar Act

The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 designated the UIDAI as a statutory authority under the Ministry of Electronics and Information Technology.

K.S. Puttaswamy vs Union of India (2017): Supreme Court declared the Right to Privacy as a Fundamental Right under Article 21, started the debate of Aadhaar's constitutional validity against privacy principles.

Aadhaar Judgment (2018): Constitutional bench of the Supreme Court upheld the constitutional validity of the Aadhaar Act, 2016, applying the doctrine of proportionality.

• Court asserted Aadhaar's necessity for government services and welfare schemes (such as LPG subsidies, MGNREGA, and pensions) and for linking Aadhaar to PAN cards and filing income-tax returns.
• Struck down Section 57 of the Aadhaar Act, ruling that Aadhaar cannot be made mandatory for private services like mobile connections or opening bank accounts.
• Emphasized that no individual should be denied rightful benefits or services due to the absence of an Aadhaar card.
• Upheld the classification of the Aadhaar Act as a Money Bill.
• Mandated parental consent for the Aadhaar enrollment of children.
• Regarding data storage, the Court ruled that Aadhaar metadata can only be stored for six months, not five years.

Aadhaar (Sharing of Information) First Amendment Regulations, 2025: Issued by UIDAI in August 2025, to strengthen Aadhaar records' accuracy and align data handling with emerging data protection standards.

• Allows UIDAI to share child Aadhaar numbers (below five years, based on birth certificates without biometrics) with the Registrar General of India or State Chief Registrar, with parental consent, to prevent duplicate enrolments.
• Entities' responsibilities for handling Aadhaar numbers do not apply if the Aadhaar is deactivated due to the holder’s death, reducing compliance burdens and supporting integration with death registries.

Aadhaar Card Role in India’s Welfare Model?

Proof of Identity and Address: Aadhaar serves as a robust proof of identity and address, simplifying access to various services and eliminating the need for multiple documents.

Direct Benefit Transfer (DBT): Aadhaar facilitating DBT schemes by transferring cash benefits directly into beneficiaries' bank accounts, thereby reducing leakage and ensuring benefits reach intended recipients. Examples include LPG subsidies, MGNREGA wages, pensions, and scholarships.

• It reduces fraud and leakage in government welfare programs by eliminating fake and duplicate identities, eliminating over 4.15 crore fake LPG connections and 5.03 crore duplicate ration cards.

Financial Inclusion: Aadhaar increased financial inclusion through initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which has enabled millions of previously unbanked citizens to open bank accounts and access financial services.

• It also simplifies KYC (Know Your Customer) verification for opening bank accounts and getting SIM cards.

Other Government Services: Aadhaar is used for various other services, including public distribution system (PDS), passport applications, linking with voter IDs, and social security schemes.

• It is used in healthcare programs like Ayushman Bharat and for COVID-19 vaccination drives via CoWIN.

Digital India Initiative: It is the "backbone" of India's digital public infrastructure and a cornerstone of its digital transformation, enabling transparent and efficient governance.

What are the challenges related to the Aadhaar Card?

Exclusion from Welfare Schemes: Many genuine citizens have been denied essential benefits like Orunodoi, free rice, and housing because their Aadhaar was locked.

• A 11-year-old Santoshi Kumari in Jharkhand died of starvation; her family's ration card was cancelled for not being linked to Aadhaar.

Biometric Authentication Failures: Issues with fingerprint or iris scans can occur due to physical characteristics (e.g., worn-out fingerprints for manual laborers, dry hands for the elderly, or eye conditions), leading to failed authentication processes.  

• The Parliamentary Public Accounts Committee (PAC) flagged the high failure rate of Aadhaar biometric verification as a serious concern, stating that it wrongfully excludes beneficiaries from welfare programs. 

Unreliable Demographic Details: Name mismatches, not align with other documents like PAN cards, requiring corrections.

• Errors in linking Aadhaar with welfare schemes can occur if demographic details, like spelling, don't match across databases, as seen in the case of Sanni Tuti, whose misspelt name blocked her linking process. 

Security Risks: Instances of data breaches, unauthorized access, and public leaks of Aadhaar data, concerns about the security of the centralized database.  

• In 2023, Resecurity, an American cyber security company, said that personally identifiable information of 815 million Indian citizens, including Aadhaar numbers and passport details, were being sold on the dark web.

Privacy Concerns and Surveillance: Critics concern about the potential for mass surveillance and unauthorized profiling due to the vast amount of personal information stored and linked across various services.

• The Digital Personal Data Protection Act (DPDP Act) 2023 aims to address this, but its adequacy for Aadhaar-specific challenges is still debated.

Lack of Informed Consent and Transparency: Concern about a lack of informed consent regarding the uses of Aadhaar data, especially when private entities require it. Users are unaware how their information are processed by third-party.

No Exit Option: There is currently no option to exit the UIDAI database.

Digital Barriers: About 45% of the Indian population lacks internet access, hindering their ability to access welfare services dependent on Aadhaar-linked digital platforms. (Source: DataReportal)

• Centre For Economic and Social Studies (CESS) report that only 12% of individuals over 15 years of age in India are computer literate or possess information and communication technologies (ICT) skills.

Assam-Specific Issues

NRC Linkage and Biometric Locking: For years, biometrics of many individuals in Assam were locked due to the NRC (National Register of Citizens) process, preventing them from receiving Aadhaar cards.

Incorrect Information: Some individuals received Aadhaar cards with incorrect names or details, leading to further disenfranchisement, such as being marked as a 'Doubtful voter'.

Uncertain Citizenship Status: Even after biometrics were unlocked, many excluded from the final NRC can get Aadhaar but their citizenship status remains in doubt without official rejection orders to appeal.

New Restrictions in Assam (August 2025): State government decided to stop issuing new Aadhaar cards to individuals over 18 years, effective October 2025, to prevent "illegal Bangladeshi migrants" from acquiring Indian identity documents.

• Exceptions are made for SC, ST, and tea garden communities for one year, as their Aadhaar saturation levels are lower.

Way Forward  

Enhanced Data Integrity and Security: Implement advanced technological safeguards such as encryption, tokenization, and virtual IDs to protect sensitive data.

• Encryption: Process of converting readable data into a unreadable code that requires digital key to unlock and read. 
• Tokenization: Process of replacing sensitive data with a randomly generated "token" that minimizes risk by having no value on its own. 
• Virtual IDs: Temporary, revocable identifier used in place of a permanent ID for authentication, protect actual ID from being exposed. 

Expand Security: Strengthen UIDAI's oversight and align India's data protection laws more closely with global best practices like European Union's General Data Protection Regulation (GDPR).

Address Authentication and Demographic Issues: Improve the accuracy of biometric authentication systems and provide alternative authentication methods like OTP or allowing other IDs for those facing difficulties.

Ensure Informed Consent and Transparency: Increase transparency on how private entities secure and use Aadhaar-linked data, avoid storage of full Aadhaar numbers and explore alternatives like masked Aadhaar or program-specific IDs.

Strengthen Grievance Redressal and Accountability: Improve the grievance redressal mechanisms, ensure local accountability in welfare programs and involve local authorities in addressing issues.

Universal Digital Inclusion: Expand digital literacy campaigns (e.g., PM Pradhan Mantri Gramin Digital Saksharta Abhiyaan) targeting marginalized communities, women, the elderly, and rural populations.

Improve Budgetary Allocations: Increase allocation for social sectors, prioritizing healthcare, nutrition, and education. Blend primary healthcare with preventive measures through enhanced budget allocation.

Data-Driven Policy Making: Deploy AI and machine learning tools for targeted beneficiary identification and de-duplication to enhance efficiency and equity. Integrate with upcoming Census data for dynamic updates.

Holistic Development and Portability: Focus on long-term empowerment by linking skill development programs (e.g., Pradhan Mantri Kaushal Vikas Yojana) with employment guarantee schemes.

• Extend entitlement portability beyond food security (One Nation One Ration Card) to schemes like pensions, scholarships, and health insurance through a "One Nation, One Entitlement" framework.

Address Assam-Specific Challenges: Streamline the Aadhaar issuance process, independent of citizenship verification, as Aadhaar is not proof of citizenship.

• Separate Aadhaar enrollment from the NRC process to prevent further marginalization.
• Engage in dialogue with stakeholders to bridge security priorities with social justice and human dignity in policy-making regarding Aadhaar issuance.

Source: INDIAN EXPRESS

PRACTICE QUESTION Q. Critically analyze how Aadhaar has transformed welfare delivery in India. 150 words

Frequently Asked Questions (FAQs)

Is Aadhaar mandatory for all government schemes?

No, the Supreme Court has ruled that Aadhaar is mandatory only for welfare schemes funded from the Consolidated Fund of India.

What is responsible for Aadhar Card Regulation?

The Unique Identification Authority of India is responsible for Aadhaar enrollment, authentication, and the overall management of the Aadhaar project.

What is the legal status of the right to privacy in India?

The Supreme Court has recognized the right to privacy as a fundamental right under the Constitution of India.