Mr Jaitley, who is in the US to attend the annual meetings of the IMF and the World Bank, was responding to a question at the prestigious Columbia University on how the government is planning to handle Aadhaar after the recent Supreme Court decision on the right to privacy.
In its judgement in August, a nine-judge bench decreed that that right to privacy is part of the fundamental rights to life and liberty enshrined in the Constitution.
The judgement has been interpreted by many as a setback to the Aadhaar card, under which the government collects vital personal information of the citizens.
"I do believe that the Supreme Court judgement on the privacy matter in accordance with the current timing is a correct judgement. It lays down the correct exceptions which protects Aadhaar," Mr Jaitley told students.
"Article 21 reads that no person can be deprived of his right to life and liberty without procedures established by the law. That procedure has to be fair and just," he said.
Mr Jaitley said that some of the judges also went into what would be the exceptions to the law of privacy.
He said the third exception had been carved out specifically to protect Aadhaar.
"For instance, nobody can see that I spent Rs 1 crore in cash and you can t ask me the source, because it violates my privacy...So I think, these exception have been well brought out in the judgement itself," he said.
There is a chapter in the Aadhaar law which deals with certain aspects like the manner in which data is to be protected and the consequences of violation, he said.
"So all those safeguard provisions have been brought into the law," he asserted.