Daily Current Affairs : 25-September-2023
In recent news, Moody’s Investors Service, a global rating major, has raised concerns about the security and privacy vulnerabilities associated with centralized identification systems, notably India’s Aadhaar program. Aadhaar, a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI), plays a pivotal role in the country’s digital landscape. In this essay, we will delve into what Aadhaar is, its significance in India, and the concerns flagged by Moody’s.
Understanding Aadhaar
Aadhaar, often referred to as the Aadhaar number, is a unique identifier assigned to Indian residents after they undergo a rigorous verification process conducted by the UIDAI. This number, which is 12 digits long, is not restricted by age or gender; anyone residing in India can voluntarily enroll for Aadhaar. To obtain an Aadhaar number, individuals must provide minimal demographic and biometric information, including ten fingerprints, two iris scans, and facial photographs.
India’s Aadhaar Programme
Aadhaar serves as a strategic policy tool with multifaceted applications. It plays a crucial role in achieving social and financial inclusion, driving public sector delivery reforms, managing fiscal budgets efficiently, enhancing convenience for citizens, and promoting a people-centric form of governance. This identity platform is a cornerstone of the broader “Digital India” initiative, aiming to provide every resident of India with a unique and verifiable identity. Through Aadhaar, the government can directly reach residents and deliver various subsidies, benefits, and services, all using their Aadhaar numbers.
Concerns Flagged by Moody’s
Moody’s has articulated several concerns regarding India’s Aadhaar program and centralized identification systems in general:
- Unreliable Biometric Technology: One significant concern is the reliability of biometric technologies used for Aadhaar authentication. This unreliability often leads to service denials, particularly affecting manual laborers working in hot and humid climates. This issue raises questions about the practicality and effectiveness of such biometrics.
- Privacy and Security: While acknowledging Aadhaar as the world’s largest digital ID program, Moody’s has drawn attention to the program’s privacy and security aspects. The collection and centralization of sensitive personal information have sparked privacy concerns, and security breaches are a constant worry.
- Decentralized Systems: Moody’s supports the adoption of decentralized identification (DID) systems, such as digital wallets based on blockchain technology. These systems offer users greater control over their private data and have the potential to reduce online fraud. The decentralization of identity information can mitigate the risks associated with centralization.
- Negative Social Repercussions: On a broader scale, Moody’s has raised concerns about the social implications of digital ID programs, whether centralized or not. Such systems can inadvertently strengthen group identities and deepen political divides, especially if controlled by technology and social media giants with substantial monopolistic influence.
Important Points:
- Aadhaar Basics
- 12-digit unique identification number for Indian residents.
- Issued by the Unique Identification Authority of India (UIDAI).
- Voluntary enrollment for all residents regardless of age or gender.
- Requires minimal demographic and biometric information, including fingerprints, iris scans, and facial photographs.
- Significance of Aadhaar
- Strategic tool for social and financial inclusion.
- Facilitates public sector delivery reforms.
- Aids in managing fiscal budgets efficiently.
- Promotes convenience and people-centric governance.
- Central to India’s “Digital India” initiative, providing unique identities to all residents.
- Enables government to deliver subsidies and services using Aadhaar numbers.
- Concerns Raised by Moody’s
- Unreliable Biometric Technology
- Leads to service denials.
- Questionable effectiveness, especially in hot and humid conditions.
- Privacy and Security
- Privacy concerns due to centralized data collection.
- Constant worry about security breaches.
- Decentralized Systems
- Moody’s supports decentralized identification (DID) systems.
- Digital wallets based on blockchain technology provide greater data control.
- Potential to reduce online fraud.
- Negative Social Repercussions
- Digital IDs, whether centralized or not, can strengthen group identities.
- May deepen political divides, especially when controlled by influential tech and social media companies.
- Unreliable Biometric Technology
Why In News
Global rating major Moody’s Investors Service has raised concerns about security and privacy vulnerabilities in centralized identification systems like India’s Aadhaar program, emphasizing the critical need for robust safeguards. These vulnerabilities pose a significant challenge in ensuring the protection of sensitive personal data and underscore the importance of continuous monitoring and improvement in such systems.
MCQs about Aadhaar: Balancing Innovation and Concerns
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What biometric information is required to obtain an Aadhaar number?
A. Blood type and height measurements.
B. Ten fingerprints, two iris scans, and facial photographs.
C. Voice recognition and DNA samples.
D. Eye color and hair type.
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According to Moody’s, what is a potential concern related to Aadhaar’s biometric technology?
A. It works perfectly for all users.
B. It may lead to service denials.
C. It is only effective in cold climates.
D. It has no impact on service delivery.
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What alternative to centralized identification systems like Aadhaar does Moody’s support?
A. Digital wallets with facial recognition.
B. National identification cards.
C. Decentralized identification (DID) systems based on blockchain technology.
D. Social media companies’ authentication services.
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