UIDAI to charge private companies Rs20 for each Aadhaar-based verification

The Unique Identification Authority of India (UIDAI) has notified the Aadhaar (Pricing of Aadhaar Authentication Services) Regulations 2019, which direct private entities to pay for the e-KYC and authentication services provided by the Authority.

As per the Regulation, private entities will have to pay Rs20 (inclusive of taxes) for each e-KYC authentication and Rs0.50 (including taxes) for each Yes/No authentication transaction.
The Regulations are stated to have been framed in exercise of the powers conferred in Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and Regulation 12(7) of the Aadhaar (Authentication) Regulations, 2016,
"Aadhaar authentication services shall be charged at the rate of Rs20 (including taxes) for each e-KYC transaction and Rs0.50 (including taxes) for each Yes and No authentication transaction from requesting entities", said the notification.
Government entities and the Department of Post are exempted from the charges.
"Scheduled commercial banks engaged in providing Aadhaar enrolment and update facilities shall also be exempt from authentication transaction charges. However, such banks, which fall short of the Aadhaar enrolment and update targets, as communicated from time to time, will be charged in proportion to the shortfall in achieving the target," according to the notification.
The entities have to deposit the authentication transaction charges within 15 days and delay in payment beyond 15 days will attract 1.5 per cent interest per month and discontinuation of the availed authentication and e-KYC services.
The constitution bench of the SC in the judgment delivered on 26 September had upheld the constitutional validity of the Aadhaar Act by 4:1 majority, with certain restrictions and changes. The compulsory use of Aadhaar based KYC for mobile connections and bank accounts was prohibited by the SC.
On 2 March, the President promulgated Aadhaar and Other Laws (Amendment) Ordinance 2019 to make amendments to the Aadhaar Act 2016, Prevention of Money Laundering Act 2005 and the Indian Telegraph Act 1885, enabling use of Aadhaar data by private banks and telecoms for authentication of identity.