UIDAI to revamp Aadhaar KYC to enhance offline use, cut security risks

UIDAI to revamp offline Aadhaar KYC to boost adoption; users will not need to share Aadhaar number or use OTPs, making the process more secure, private, and easier for fintech firms to adopt

To boost the use of offline Aadhaar-based Know Your Customer (KYC) verification, the Unique Identification Authority of India (UIDAI) is revamping the process to enhance its security and make it simpler for users, according to a report by The Economic Times. 

The updated system will allow customers to complete KYC without sharing their Aadhaar number or personal information. It will also remove the need for biometric authentication or one-time passwords (OTPs), the news report said.

 

Disruptions spark tighter rules

In June, several startups — including food delivery and e-commerce platforms — faced onboarding issues after the UIDAI and the Ministry of Electronics and Information Technology (Meity) blocked websites for unauthorised access to the Aadhaar database. This affected KYC processes at fintech and lending companies.     

  To improve ease of use, UIDAI is planning to promote QR codes and PDF files, which will be simpler alternatives to the XML format currently used in offline KYC.

 

UIDAI tightens Aadhaar rules to curb fraud

The UIDAI has rolled out new and stricter rules for Aadhaar enrolment and updates, aiming to curb misuse and strengthen the identity verification process. These changes include real-time document verification and cross-database checks to ensure the authenticity of applicants. 

Aadhaar plays a crucial role in India’s digital infrastructure, with over 1.4 billion Aadhaar numbers issued in the last 15 years. However, concerns have grown over fake or duplicate enrolments. In March 2025 alone, UIDAI issued two million new Aadhaar numbers and updated 19.1 million existing ones. 

In light of the rising misuse of Aadhaar, the government is now focusing on securing new adult registrations. UIDAI has begun verifying documents like passports, ration cards, birth and school certificates in real time. Additionally, a new digital tool has been launched to match applicant data with online records from sources such as PAN cards, driving licences, electricity bills, and MGNREGS databases.

 

Kids’ Aadhaar may be deactivated without biometrics

UIDAI also warned that Aadhaar numbers of children enrolled before the age of five may be deactivated if their biometric details are not updated after they turn seven. 

“UIDAI has started sending SMS messages... for completing the MBU (Mandatory Biometric Update) exercise,” the authority said in a press release on July 9. 

Biometric updates — including fingerprints and iris scans — must be done between the ages of five and seven. After this age, a ₹100 fee is applicable. Failure to update may affect access to essential services such as school admissions and scholarships.