Is your money at risk of being stolen if your Aadhaar is linked to your bank account? This is what UIDAI has to say

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In India, a vast majority of citizens have linked their bank accounts to Aadhaar numbers voluntarily or compulsorily. The government has been employing this linkage to directly transfer benefits like LPG subsidy or pension into the beneficiary account under the Aadhaar-based Direct Benefit Transfer (DBT) system. Although mass-scale linking has also raised fears about privacy, abuse, and potential financial fraud.

UIDAI’s stand on Aadhaar security

The Unique Identification Authority of India (UIDAI), the organization that operates Aadhaar, has never contended that linking your bank account to your Aadhaar number provides anyone with the means of accessing or appropriating your funds. UIDAI elucidates that no money transfer or financial transaction is possible through Aadhaar by itself. Any transaction requires other authentication means—such as an OTP (one-time password), fingerprint, or biometric scan—depending on the service being used.

This multi-factor authentication guarantees that even if the Aadhaar number is known to an individual, one cannot use your bank account or steal money. UIDAI also clarifies that no bank account is to be run on Aadhaar alone. An active ATM PIN, internet banking password, or biometric validation is a must.

Can Aadhaar details be misused?

Even though the Aadhaar system is made safe, there can be misuses if people unwittingly submit sensitive information. Scammers can trick customers into entering OTPs or bank passwords by calling them up or sending seemingly generated links. But it is not fraud against Aadhaar-bank linking but due to ignorance and unawareness in protecting individual information.

In order to further protect the citizens, UIDAI has added the functionality of "locking" and "unlocking" Aadhaar biometrics online. It prevents your fingerprint or iris scan from being exploited for transactions unless you explicitly "unlock" it. Additionally, users can create a Virtual ID (VID) that can be used in place of their actual Aadhaar number for several services to reduce exposure.

How to keep yourself safe?

Don't disclose your Aadhaar number to anyone or even via phone. Never share OTPs or banking passwords. Keep Aadhaar details and banking credentials secret and update your registered mobile number in order to receive alert on any Aadhaar-based transaction. You can check your Aadhaar authentication history through the UIDAI website to ensure whether there has been any misuse or not.

FAQs

1. Can money be withdrawn from my bank account using only my Aadhaar number?

No. Aadhaar is a proof of identity and cannot open an account or access your bank account in the lack of an OTP or biometric verification.

2. Is it secure to add my Aadhaar to the bank account?

When assured by UIDAI, it is secure and needed for the services such as DBT. It does not concern your money and does not facilitate unauthorized access to it.

3. How would I be aware if someone has accessed my Aadhaar?

You can visit the UIDAI portal and view your Aadhaar authentication history by providing your Aadhaar number and OTP. This helps in detecting unusual activity.