Moody’s Questions Aadhaar, India Hits Back Strong

Moody’s, a financial rating agency, raised concerns about India’s Aadhaar system, particularly regarding its use of biometrics in hot and humid conditions. They also mentioned cases where Aadhaar authentication led to service denials, raising security and privacy questions. Here’s how India answered back:

UIDAI’s Rebuttal:

The organization in charge of Aadhaar, UIDAI, strongly disagreed with Moody’s. UIDAI pointed out that over a billion Indians have successfully used Aadhaar for authentication over 100 billion times in the last decade, proving its reliability.

Government and UIDAI’s Defense:

They defended Aadhaar by highlighting its multiple authentication methods, including facial and iris recognition, in addition to fingerprinting. They also mentioned the use of one-time passwords (OTP) via mobile phones for added security.

Ministry of Electronics & IT’s Response:

The Ministry criticized Moody’s report for lacking proper evidence and mentioned Aadhaar’s trust among over a billion Indians and positive evaluations by international bodies like the IMF and World Bank.

Addressing Centralization Concerns:

Both UIDAI and the Ministry emphasized that there have been no reported breaches of the Aadhaar database. They stressed that Aadhaar’s security measures meet global standards.

Aadhaar’s Role in Financial Inclusion:

India pointed to a recent G20 report, showing how Aadhaar, alongside Jan Dhan bank accounts and mobile phones, has boosted financial inclusion among Indian adults, achieving results in a short time.

Despite Moody’s concerns, India remains confident in Aadhaar’s effectiveness, widespread use, and security measures.

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