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Concern over Aadhaar

Why is it in the news?

Recently, Moody’s Investors Service raised concerns about India’s Aadhaar program.

More about the news

  • Recognizes Aadhaar as the world’s largest digital ID program, serving over 1.2 billion Indian residents. Highlights Aadhaar and a crypto-based digital identity token called Worldline for their scale and innovation.
  • However, notes that Aadhaar often leads to “service denials.”
  • Highlights security and privacy vulnerabilities in centralized identification systems.
  • Points out the unreliability of biometric technologies, particularly in hot and humid conditions.
  • Moody’s recommends Decentralized ID (DID) systems, such as digital wallets based on blockchain technology.
  • ID systems offer users greater control over their private data and can reduce online fraud.
  • Cites successful DID programs in Catalonia, Azerbaijan, and Estonia using blockchain-based systems for digital identities.
  • However, Moody’s acknowledges challenges with decentralized IDs, including potential negative social repercussions.
  • Warns about the strengthening of group identities and political divides, especially when offered by influential tech and social media companies.

路聽聽聽聽聽聽 Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to every individual resident of India.

路聽聽聽聽聽聽 It serves as聽proof of identity,聽which is linked to the individual’s biometric and demographic information.

路聽聽聽聽聽聽 The Aadhaar programme was聽launched in 2009 by the UIDAI聽with the goal of providing a unique and verifiable identity for every resident of India.

路聽聽聽聽聽聽 It is now聽mandatory for a number of government services聽and is also being used by private companies for identification purposes.

路聽聽聽聽聽聽 More than 133 Crore Aadhaars have been issued as of April 2022. 99.9% of adults in India have an Aadhaar card.聽Since its inception Aadhaar Card has helped bridge the digital divide and helped in the smooth roll-out of various government direct benefit transfer (DBT) schemes.

路聽聽聽聽聽聽 Verification methods include fingerprint and iris scans, as well as One-Time Passcodes (OTPs).

路聽聽聽聽聽聽 Faces challenges in establishing authorization and concerns about biometric reliability.

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