Startups turn to Digilocker verification after govt crackdown

Companies in e-commerce, ride-hailing, and food delivery often struggle to verify gig workers, such as delivery personnel, using Aadhaar-based eKYC.

In January, the government mandated ministry approval for accessing the government database for Aadhaar authentication. After approval, companies could access the government’s Aadhaar database via Protean eGov Technologies.

Protean eGov processes around 12 lakh eKYC transactions daily. It handled 56 crore verifications in FY2025 alone.

In June, the Ministry of Electronics and IT (Meity) and UIDAI targeted the unauthorised use of Aadhaar onboarding tools and blocked verification websites like Surepass, Digitap, and Zoop. The move also impacted startups and companies in the fintech and lending sectors. They turned to Digilocker-based Aadhaar verification tools for governmental compliance.

Verification platforms like Idfy are assisting e-commerce companies with legal methods of validation and onboarding. The UIDAI will introduce QR codes and PDFs for safer verification, replacing the use of XML files.

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