The Government of India's 'Digital India' initiative has put the AADHAR number at the center of most of the transactions. The AADHAR card is rapidly becoming the most preferred way to do eKYC, opening bank account and even making payments. However, this data is available to the stakeholders - like mobile phone companies and the banks. The Unique Identity Authority of India aka UIDAI has now decided to let the user lock or unlock their AADHAR data and prevent access to it.
With this feature, user can decide whether they want to allow the data to be used for authentication. If the data is locked, no one will be able to use it. Even the banks or the mobile companies will not be able to access it and AAHDAR-based payments will fail. This is because the AADHAR main server won't acknowledge the request and authenticate the user.
In the recent times, there were multiple cases of the misuse of AADHAR information were reported. The UIDAI has said that while existing system is safe; it is taking proactive steps to prevent information misuse. As a part of the initiative, new encryption standards are being made mandatory for the AADHAR authentication devices. Only registered devices that comply with the STQC certification will be able to carry out AADHAR authentication.
AAHDAR card authentications have surged to over 2 crore from just about 10 lakh just about 2 years ago. UIDAI is in talks with the authentication device manufacturers since last few months and expects the new standards to be implemented by May end.