“The World Economic Forum is lauding India’s Unified Payment Interface (UPI) for revolutionizing digital payments and cited that it has saved the Indian economy approximately $67 billion since its inception in 2016. However, the praises might overshadow grave concerns regarding privacy and civil liberties tied to the Aadhaar-based digital payment system that is linked to a digital ID.

India’s UPI, which is linked to the Aadhaar biometric identification system, has undoubtedly skyrocketed the number of financial transactions. With a staggering 48.6 billion transactions processed in 2021, India leads the world in real-time payment transactions…

With financial transactions now tied to a person’s Aadhaar number, which is linked to biometrics, critics argue that this opens the door to government surveillance. It provides the government with an unprecedented ability to monitor the financial activities of individuals in real-time. The threat of this data being used for political or discriminatory purposes cannot be ruled out.

As the UPI system stores colossal amounts of sensitive data, it becomes an attractive target for hackers and malicious entities. Data breaches in such a system can have catastrophic effects on individuals whose financial and biometric data could be compromised.”