Having multiple NPCI entities would be expensive and insecure. There is no benefit building multiple clearing and settlement centres. Its better to ensure that NPCI is neutral and redundant. We should build a separate standards setting body so that regulators can focus on running the system while the standards body can setting and maintain standards.
While dystopian science fiction is increasingly becoming true given the growing stratification of society, and the widening gap between the rich and the poor, technology has greatly exacerbated these differences. As we build our digital public infrastructure we need to redesign these technologies to ensure equitable access and benefits.
There were doubts as to whether Aadhaar would work because of India’s patchy infrastructure. It eventually went on to provide identity to many, but faced challenges like enrolment errors and biometric recognition issues. Because it was mandatory linked to various services, the Supreme Court moved to restrict private sector access - significantly constraining its ability to function as a tool of transformation.
The Lok Sabha passed the Aadhaar Amendment Bill, aiming to facilitate the continued use of Aadhaar within constraints set by the Supreme Court. The bill emphasizes voluntary use, gives statutory legitimacy to offline verification, strengthens privacy provisions, and controversially allows the private sector to regain access to Aadhaar infrastructure.
In the aftermath of the Supreme Court judgment the use of offline QR-based verification will prove to be a viable alternative that will allow us to continue to benefit from the Aadhaar identity system without exposing Aadhaar number holders to the many harms that the SC judgment was at pains to avoid.
The recent Supreme Court judgment on Aadhaar has left confusion and dissatisfaction among various stakeholders. While the court upheld the identity scheme, it restricted its scope, leading to uncertainty over the role of the private sector in Aadhaar’s infrastructure. The judgment’s implications on government services and subsidies, many of which rely on private sector authentication, remain unclear, raising concerns about potential negative impacts on pensioners, migrant workers, and microfinance beneficiaries.
While it is not without its flaws, a closer examination of the provisions of the Aadhaar Act will make it clear that it imposes on the government, some of the strongest fetters on executive over-reach of any legislation in the country.
