India is opening up its Aadhaar authentication system for businesses, sparking a heated debate about privacy and data security. The move, announced by the IT ministry, allows companies in sectors like e-commerce, healthcare, travel, and hospitality to use the biometric ID system to verify their customers’ identities.

Aadhaar, which links over 1.4 billion people to their biometric data, has been a cornerstone of India’s digital identification efforts. While it was initially limited to government services, the new rules expand its use to private entities. Officials say this will improve service delivery and streamline processes. However, critics worry about potential misuse and the lack of clear safeguards.

The government recently updated its Aadhaar Authentication Rules, removing a clause that restricted its use to preventing the “leaking of public funds.” This change significantly broadens the scope of Aadhaar, which was previously used mainly by banks and telecom providers for customer verification.

Despite the government’s assurances, experts are raising red flags. They point out that the Supreme Court, in a 2018 ruling, struck down a section of the Aadhaar Act that allowed private companies to use Aadhaar data. The new amendment, they argue, seems to reintroduce similar provisions under a different guise.

“Licensing existed before, but expanding access raises concerns about misuse,” said Prasanna S, an advocate who has challenged the Aadhaar Act. Others worry about exclusion. “Linking IDs to digital services can leave some people out,” noted Sidharth Deb, a public policy expert.

While the government is yet to clarify its criteria for approving Aadhaar authentication requests, the move has already fueled a fresh wave of privacy debates. As businesses adopt this system, the need for transparency and accountability becomes more urgent than ever.

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