caalley logoThe alley for Indian Chartered Accountants

Worried about Aadhaar misuse? UIDAI has rolled out a new safety vault

New Delhi, Nov 7, 2025

Organisations that have access to Aadhaar information must store it in the secure vault, says UIDAI

As banks, fintechs and government agencies access people’s Aadhaar information, protecting personal data has become a priority. The Unique Identification Authority of India (UIDAI) has asked all entities holding the information to store it in a secure digital environment called an Aadhaar Data Vault (ADV).

ADV is a dedicated and secured storage system designed to hold information such as Aadhaar numbers or eKYC XML files, which contain details like name, date of birth, gender, address, email ID, and mobile numbers.

The vault works as a restricted access repository, ensuring that Aadhaar numbers are not scattered across multiple databases. Instead, the numbers are encrypted and stored in one place, reducing the risk of leaks or identity theft.

Who has to create Aadhaar Data Vault

Under the Aadhaar Act, 2016, UIDAI mandates that all requesting entities that use Aadhaar for authentication must implement this vault. A requesting entity is any organisation or individual authorised to collect Aadhaar details and send them to UIDAI’s Central Identities Data Repository (CIDR) for verification.

In simple terms, if an organisation stores your Aadhaar number or uses it for eKYC verification, it must set up an Aadhaar Data Vault to safeguard that information.

Why UIDAI introduced the Aadhaar Data Vault

The main goal is to minimise Aadhaar’s digital footprint. The fewer systems that store the actual Aadhaar number, the lower the chance of data breaches. Key benefits include:

Encryption of Aadhaar numbers and linked data, preventing unauthorised access.

Controlled access through strict authentication and audit trails.

Regulatory compliance for all entities handling Aadhaar-linked data.

UIDAI has also issued detailed security and technical standards for maintaining the vault, including access control, encryption keys, and regular audits.

What it means for users

For ordinary citizens, ADV ensures an additional layer of security over their personal information. It helps make sure that when you share your Aadhaar for KYC, the details are stored only in encrypted form and cannot be accessed or replicated without authorisation.

In short, UIDAI’s Aadhaar Data Vault aims to build trust, accountability and data discipline in how Aadhaar information is stored and used across the digital ecosystem.

[The Business Standard]

Don't miss an update!
Subscribe to our email newsletter
Important Updates