UIDAI eyes Aadhaar KYC overhaul for offline verification; what's likely to change?
Jul 17, 2025
Synopsis
Aadhaar-based KYC is poised for significant changes, enhancing security, privacy, and convenience. Users will soon complete offline KYC without sharing their Aadhaar number or personal details, using simpler formats like QR codes and PDFs. This updated process eliminates the need for biometrics or OTPs, encouraging wider adoption by financial services and streamlining customer onboarding.
Using Aadhaar for identity verification—especially when opening bank accounts, applying for loans, or signing up for financial services— is set for big changes.
The Aadhaar-based KYC (know-your-customer) process is set to become more secure, private, and convenient for users in the near future.
Here’s what’s likely to change soon according to an ET report:
No more sharing Aadhaar number or personal details
Currently, to verify identities using Aadhaar, users often have to share their Aadhaar numbers or show up in person to complete KYC (know-your-customer) procedures.
The Unique Identification Authority of India (UIDAI) is working to change that.
Soon, users will be able to complete the Aadhaar-based offline KYC without revealing Aadhaar number or other personal information to service providers.
This means more privacy as data will only be shared with explicit consent, making the process more secure.
New, easier formats for offline KYC
Until now, offline Aadhaar KYC required users to download a complex XML file from the UIDAI website and share it with the service provider.
This process can be confusing and cumbersome.
To fix that, UIDAI plans to introduce QR codes and PDF files as new options for offline verification documents.
These formats are much easier to handle and share, making it simpler to complete KYC from phones or computers—without technical hassles.
No need for biometrics or OTPs
Currently, Aadhaar verification sometimes involves biometric scans (like fingerprint or iris scans) or receiving a one-time password (OTP) on registered phone numbers.
The updated offline KYC process will let users complete verification without any biometric authentication or OTP, making the process quicker and less intrusive.
More financial services will adopt offline KYC
With these improvements and clearer regulations from UIDAI, more banks, fintech startups, insurance companies, and other financial players are expected to start accepting Aadhaar-based offline KYC.
This means Aadhar users will have more options and flexibility when signing up for financial products or services.
Why these changes matter
Earlier this year, many fintech companies and startups faced disruptions because of tightened controls on accessing the Aadhaar database.
Even gig workers and blue-collar employees faced onboarding delays due to these restrictions.
The new offline Aadhaar KYC process is designed to avoid such problems in the future. It keeps your information safer, simplifies the process, and allows more companies to onboard customers quickly and securely—benefitting users like you.
[The Economic Times]
