There are many agencies that simply accept physical copy of Aadhaar and do not carry out any biometric or OTP authentication or verification. Is this a good practice?

Aadhaar is to be accepted as a proof of identity only after proper authentication under the Aadhaar Act. Also, UIDAI strongly recommends that if authentication facility is not available, the verification of Aadhaar should be done offline through QR code available on the physical Aadhaar copy. If any agency does not follow these best practices, then that agency will be fully responsible for situations or losses arising out of possible misuse or impersonation. An Aadhaar holder is not responsible for the wrongful act of or by any agency.