Data Must Be Secure
Linking every financial market transaction to Aadhaar is sensible to create audit trails. That, in turn, will help curb tax evasion. But data security is vital to guard against frauds in an Aadhaar enabled payments system. Aadhaar also has the potential to be abused, for example, by using this tag to collate information on a person’s financial history. The government must enact a privacy law which empowers citizens to complain and get redress if their data are misused. Here, India can take a page from the EU.