Indian Government Responds To Moody’s Critique Of Aadhaar, Cites Over A Billion Users

On Monday, the Indian government unequivocally rejected Moody’s claims regarding the Aadhaar system, which they have hailed as “the most trusted digital ID in the world.” Moody’s had raised concerns about potential privacy and security risks associated with Aadhaar, particularly in the context of its biometric technology in humid climates.

The Unique Identification Authority of India (UIDAI), responsible for managing Aadhaar, joined in refuting Moody’s claims, specifically addressing service denials, especially for manual laborers, in hot and humid conditions. The government countered Moody’s assertions by highlighting the praise Aadhaar has received from prominent international organizations like the International Monetary Fund and the World Bank. They emphasized that numerous 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 credentials, citing potential security and privacy risks. However, the government criticized the report for lacking primary or secondary data and research to substantiate its claims. They pointed out that Moody’s only cited the UIDAI’s website as a reference.

Additionally, the government noted that Moody’s failed to acknowledge that biometric submissions for Aadhaar can also be contactless, such as through facial and retinal scans or mobile OTPs. They emphasized that the “factual position” regarding Aadhaar’s security had been disclosed in Parliament, where no security breaches have been reported to date.

Furthermore, the government clarified that workers are not required to provide biometrics to link their Aadhaar numbers in a public jobs database, nor do they need it to receive payments under the same scheme.

In a separate development, during the recent G20 Summit in New Delhi, the World Bank’s Global Partnership for Financial Inclusion document commended India’s Digital Public Infrastructure for its transformative impact over the past decade.