After a long legal battle on Aadhaar, the Supreme Court pronounced a judgement that had far reaching effects on not just the way Aadhaar is used, but also on the private sector businesses’ ability to onboard customers.
It, in effect, stopped all e-KYC (except for Direct Benefits Transfer) and dealt a blow to digitization efforts and the adoption of Aadhaar itself. It would no longer be so easy to onboard users remotely. Nor would it be possible to verify Aadhaar details from the CIDR until an Act of Law (such as PMLA or Telegraph) expressly allows Aadhaar authentication for the sector.
UIDAI’s Offline Aadhaar card XML Verification
The UIDAI proposed a mechanism for “Offline Aadhaar Data Verification Service”. The offline method, they argued, would still provide an Aadhaar-based verification service without the resident having to share either their Aadhaar number or their biometric information. The keyword is Aadhaar-based verification and not authentication.