Stop offering Aadhaar-based services: UDAI directs e-payments firms

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The Unique Identification Authority of India (UIDAI) has directed the digital payments firms to submit an action plan to block the usage of the Aadhaar database for customer authentication.

AadhaarThe Aadhaar-issuing authority has notified several payments companies to stop any Aadhaar-based service on their platforms and ensure confirmation of the same.

“Since your organisation can no longer use Aadhaar-based authentication services…you may cease all operations with respect to Aadhaar-based authentication immediately, if not already done,” notified the letter sent to the e-payments companies on October 12 stated.

These actions are taken in the wake of the Supreme Court’s September ruling that barred private companies from using Aadhaar data.

In addition, the central authority has also directed these companies for “an action plan/exit plan for exiting the Aadhaar ecosystem which shall include without limitation the aspects enumerated under Regulation 23 (2) of the Aadhaar (Authentication) Regulations, 2016“.

Several brands namely PayPoint, Eko India Financial Services and Oxigen Services, have received such notices from UIDAI in the last two days.

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