Government Counters Moody’s Criticism of Aadhaar, Citing Over a Billion Indians’ Trust

On Monday, the government dismissed Moody’s, the global credit agency’s, claims that the Aadhaar system, regarded as “the most trusted digital ID in the world,” poses privacy and security concerns, especially in humid climates where its biometric technology is deemed unreliable. The Unique Identification Authority of India (UIDAI), responsible for managing the system, vehemently refuted Moody’s assertions, particularly regarding frequent service denials, especially among manual laborers in hot and humid conditions.

The government also highlighted the praise Aadhaar has received from other international organizations, such as the International Monetary Fund and the World Bank. Many countries have sought guidance from UIDAI on implementing similar digital identification systems.

Moody’s report had cautioned against centralized systems with a single point of control over users’ identification and access to online resources, citing potential security and privacy risks.

The government expressed dissatisfaction with Moody’s report, claiming it lacked primary or secondary data and research to support its opinions. The government also noted that Moody’s failed to acknowledge that biometric submissions could be contactless, involving methods such as facial and retinal scans or mobile OTPs. The government asserted that Aadhaar’s security status had already been disclosed in Parliament, emphasizing that there had been no breaches to date.

The government clarified that workers are not required to provide biometrics to link their Aadhaar numbers to a public jobs database or to receive payments under the same scheme.

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

Shruti Suman

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