Ordinance to allow voluntary use of Aadhaar to rekindle privacy debate

The 'voluntary' nature of Aadhaar has been a contentious issue, with most industry players creating conditions more conducive for Aadhaar to be used as a proof of identification

While the Cabinet passing an Ordinance to allow the voluntary use of Aadhaar as a Know Your Customer (KYC) mechanism is being welcomed by fintech companies and start-ups, it is set to stoke the debate on privacy once more.

The “voluntary” nature of Aadhaar has been a contentious issue, with most industry players like telecom companies, banks and small businesses creating conditions more conducive for Aadhaar to be used as a proof of identification. For instance, telecom service providers have often been known to process new connections faster when Aadhaar is submitted as the ID proof versus other documents like