Aadhar Card: When someone asks to store Aadhaar, then you share it only by masking the 8 numbers of the beginning of the Aadhaar number. You do not even need to carry an Aadhaar card at all times.
Aadhaar Card: From opening an account in a bank to availing government schemes, the Aadhaar card is necessary in many cases. But do you know that it is not mandatory to share 12-digit Aadhaar number to take advantage of many services. This has been told on the website of Unique Identification Authority of India (UIDAI). The Supreme Court has also recognized Aadhaar as constitutionally valid, but it is not mandatory in many places.
In September 2018, a 5-judge bench headed by the then Chief Justice Dipak Misra overruled section 57 of the Aadhaar Act in the Supreme Court. Under this, government and private institutions could demand Aadhaar for confirmation of identity. However, now this authority is only with government institutions. Private companies cannot ask you forcibly.
According to UIDAI, you cannot be asked forcibly to open a bank account, for a new SIM card, for admission to school. It is not compulsory to provide Aadhaar number for CBSE, NEET, UGC exams or even for birth and death registration. Although this can be optional.
According to UIDAI, you have to have an Aadhaar number to file income tax return or while applying for a new PAN card. If you want to take advantage of any government subsidy, you should also have an Aadhaar number.
Banks prefer Aadhaar but cannot be made mandatory. For KYC, you can also give official valid document (OVD) like any government identity card- such as PAN card, passport, driving license or voter card. The Reserve Bank of India has also considered Aadhaar as a valid document (OVD), but it is not mandatory.
There is a need to be more cautious than asking for an Aadhaar number, when you are asked for a copy of Aadhaar. Senior partner of Aureus law firm Abhishek Dutta says that when someone demands to store Aadhaar, you should share it only by masking the 8 numbers of the beginning of the Aadhaar number. You do not even need to carry an Aadhaar card at all times. There is also validity of the downloaded format through E-Aadhaar or M-Aadhaar and you can complain if someone refuses to accept it.