The Unique Identification Authority of India (UIDAI) recently announced upgrades to the Aadhaar system to enhance security and curb identity fraud. These changes aim to address long-standing concerns while ensuring seamless delivery of welfare services. Below is a detailed breakdown:
Overview of the Updates
- Objective: Strengthen Aadhaar’s security architecture, prevent misuse, and streamline authentication for government schemes.
- Legal Basis: Aligns with the Aadhaar Act, 2016, and the Supreme Court’s Puttaswamy judgment (2017) upholding privacy as a fundamental right.
- Key Driver: Rising identity fraud cases (e.g., 7.4 lakh fraud reports in 2022, as per NCRB) and data breach risks.
Key Features of the New System
AI-Driven Fraud Detection
- Technology: Machine learning algorithms to detect suspicious patterns (e.g., multiple biometric attempts, mismatched demographics).
- Use Case: Flags impersonation in real-time during enrollment/updation, addressing issues like ghost beneficiaries in schemes like PM-KISAN.
Mandatory Aadhaar Authentication for Welfare Schemes
- Scope: Applies to 317 central schemes (e.g., MGNREGA, PDS, Ayushman Bharat).
- Rationale: Reduce leakages; JAM Trinity (Jan Dhan-Aadhaar-Mobile) saved ₹2.25 lakh crore since 2015 (Economic Survey 2023).
Enhanced Encryption Standards
- Technical Upgrades:
- Elliptic Curve Cryptography (ECC): For secure Aadhaar data sharing.
- Tokenization: Replaces Aadhaar numbers with temporary tokens in financial transactions (e.g., UPI, bank linkages).
Demographic Updates
- Simplified Process: Residents can update addresses/mobile numbers online without biometric verification.
- Document Flexibility: Accepts 12 new documents (e.g., PAN, Passport) for address proof.
Challenges & Concerns
Privacy Risks
- Data Breaches: Over 210 government websites leaked Aadhaar details (2018–2022, RTI findings).
- Surveillance Fears: Centralized database raises concerns about mass profiling, especially post-PEGASUS revelations.
Exclusion Errors
- Biometric Failures: 2-3% authentication failures due to poor connectivity or worn fingerprints (common among laborers).
- Denial of Benefits: Example: 14 lakh MGNREGA workers faced wage delays due to Aadhaar glitches (2022, LibTech India).
Legal & Ethical Issues
- Mandatory Linking: SC’s 2018 ruling barred mandatory Aadhaar for non-welfare services, but banks/telecom firms still enforce it.
- Consent Concerns: Private firms misuse Aadhaar for KYC, violating Section 8 of the Aadhaar Act.
Global Context
- EU’s GDPR: Stricter consent and data protection norms compared to India’s DPDP Act, 2023.
- Estonia’s e-ID: Aadhaar-like system with decentralized storage and blockchain security.
- India’s Gap: Lacks a robust data protection authority and compensation framework for breaches.
Way Forward
Strengthen Grievance Redressal
- Decentralized Help Desks: Set up Aadhaar seva kendras in rural blocks for biometric updates.
- Timely Resolution: Mandate 7-day resolution for authentication failures under Aadhaar Seva Mitra.
Enhance Security Measures
- Zero-Trust Architecture: Adopt U.S.-inspired models to limit internal access to Aadhaar data.
- Annual Audits: Enforce third-party security audits for entities storing Aadhaar data (e.g., banks, telecom).
Address Exclusion
- Fallback Mechanisms: Allow OTP-based authentication where biometrics fail.
- Awareness Drives: Educate rural populations about updating documents via Common Service Centres (CSCs).
Legal Reforms
- Data Localization: Store Aadhaar data only within India to prevent foreign surveillance.
- Amend Aadhaar Act: Introduce penalties for coercive linking by private entities.
Significance of the Updates
- Digital Governance: Reinforces Aadhaar as the backbone of India’s digital infrastructure (used in 100 billion+ authentications since 2009).
- Financial Inclusion: Secure Aadhaar-PAN linkage has widened the tax base (8.6 crore new filers since 2014).
- Global Benchmark: Positions India as a leader in digital ID systems, influencing initiatives like World Bank’s ID4D.
Conclusion
The Aadhaar upgrades reflect India’s push to balance security, inclusivity, and privacy in its digital ecosystem. While AI and encryption innovations are commendable, systemic gaps—poor grievance redressal, exclusion errors, and weak enforcement of privacy laws—require urgent attention. By adopting global best practices and empowering users with control over their data, Aadhaar can evolve into a truly democratic tool for equitable development.
