Context: The government is considering amendments to the Aadhaar Act to align it with the Digital Personal Data Protection (DPDP) Act, 2023.

🛑 Why is a New Aadhaar Law Needed?
📜 1. Limitations of the Original Aadhaar Act (2016)
Designed in a pre-horizontal privacy era.
Focused primarily on:
Identity authentication
Welfare delivery
Lacked a comprehensive data protection framework, especially regarding:
User consent
Purpose limitation
Data minimisation
🔐 2. Introduction of Horizontal Privacy through DPDP Act, 2023
The Digital Personal Data Protection (DPDP) Act, 2023 brings:
Uniform privacy standards for both public and private sectors
Consent-based data processing
Strict penalties for data breaches
Clear responsibilities for data fiduciaries
📘 Implications of a Revised Aadhaar Law
✅ 1. Alignment with DPDP Principles
The new law will incorporate:
Consent-based data usage
Data minimisation
Purpose limitation
Storage limitation
Example:
While Aadhaar currently requires consent for enrollment/authentication, in practice it’s often mandated for services like:Bank accounts
SIM cards
School admissions
This violates the DPDP Act, which requires consent to be free, specific, informed, and unambiguous.
👤 2. Enhanced User Rights
Citizens will gain rights to:
Access their Aadhaar data
Correct inaccuracies
Request erasure
Stronger grievance redressal mechanisms will be aligned with the DPDP framework.
🧑💻 3. Enhanced User-Centricity
Aims to reduce:
Repeated consent/authentication burdens
Inconvenience in accessing services
Prioritises user convenience and control over their personal data.
🔒 4. Security & Accountability
Clear accountability measures for data fiduciaries, including:
Banks
Telecom providers
Government welfare agencies
Stronger mechanisms to prevent data leaks and misuse.
📉 5. Data Minimisation
DPDP Act requires collecting only necessary data.
Aadhaar, by default, collects sensitive biometric data, which may be excessive for certain services.
New law may bring greater scrutiny to such practices.
⚖️ 6. Resolve Conflicts Between Aadhaar Act & DPDP Act
Purpose Limitation Conflict:
Aadhaar Act allows data usage for government-notified purposes.
DPDP mandates that data be used only for the purpose consented to.
Risk of Aadhaar data being reused (e.g., for profiling/surveillance) without fresh consent.
Right to Erasure Conflict:
DPDP Act allows individuals to erase or correct their data fully.
Aadhaar Act permits only limited updates (e.g., address/phone), but not deletion of biometric data.
This creates a legal mismatch regarding data ownership and rights.