This Article is From Sep 26, 2023

"Over A Billion Indians...": Centre Counters Moody's Aadhaar Criticism

The Centre strongly refuted Moody's allegations that the Aadhaar system frequently causes service denials, particularly for manual labourers in hot and humid climates.

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India News Reported by , Edited by
New Delhi:

The government on Monday rejected global credit agency Moody's claims the Aadhaar system - "the most trusted digital ID in the world" - poses privacy and security risks, and that use of its biometric technology in humid climates is unreliable.

The Unique Identification Authority of India (UIDAI), which manages the system, has also strongly refuted Moody's claims; the agency had alleged frequent service denials, particularly for manual labourers, in hot and humid climates.

The government also pointed to other global bodies, like the International Monetary Fund and the World Bank, who have praised Aadhaar, and said that many countries had reached out to UIDAI to understand how to implement similar digital identification systems.

In its report, Moody's had warned that centralised systems with a single point of control over users' identification credentials, and access to online resources, pose security and privacy risks to users.

"The report in question does not cite either primary or secondary data or research in support opinions presented in it. The investor service did not make any attempt to ascertain facts regarding the issues raised with regard to UIDAI. The sole reference cited in the report is in respect of the UIDAI, by referring to its website," the government complained.

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The government also said Moody's had failed to mention that biometric submissions can also be contactless, such as through facial and retinal scans or mobile OTPs. The "factual position" pertaining to Aadhaar's security has also been disclosed in Parliament, the government added.

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Parliament has been informed there has been no breach so far.

Workers do not need to provide biometrics to seed their Aadhaar numbers in a public jobs database and nor do they need it to receive payments under the same scheme, the government explained.

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Earlier this month, during the G20 Summit in New Delhi, a Global Partnership for Financial Inclusion document prepared by the World Bank praised the transformative impact of Digital Public Infrastructure in India over the past decade.

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