The Indian authorities is permitting banks to confirm particular person transactions that exceed a sure annual restrict utilizing facial recognition and an iris scan in some instances, in a bid to scale back fraud and tax evasion, three sources advised Reuters.
Just a few giant non-public and public banks have begun utilizing the choice, stated one of many sources, a banker, who declined to call the banks. The advisory permitting the verification isn’t public and has not beforehand been reported.
The verification isn’t obligatory and is meant for instances the place one other authorities identification card used for tax functions, the Everlasting Account Quantity (PAN) card, isn’t shared with banks.
The prospect of banks utilizing facial recognition has involved some privateness consultants.
“This raises substantial privateness considerations particularly when India lacks a devoted regulation on privateness, cybersecurity and facial recognition,” stated Pavan Duggal, an advocate and cyber regulation skilled.
The federal government has stated it’s focusing on parliamentary approval of a brand new privateness regulation by early 2023.
The brand new measures may be used to confirm identities of people making deposits and withdrawals exceeding Rs. 2 million in a monetary 12 months, the place the Aadhaar id card is shared as proof of establish, stated two authorities officers, who requested to not be named as a result of the data isn’t public.
The Aadhaar card has a novel quantity tied to a person’s fingerprints, face and eye scan.
India’s finance ministry in December requested banks to take “essential motion” on a letter by the Distinctive Identification Authority of India (UIDAI), which steered verification needs to be completed via facial recognition and iris scanning, particularly the place fingerprint authentication of a person fails.
The letter from the UIDAI, which is accountable for Aadhaar card issuance, makes no point out of a consent framework for the verification. Nor does it say that banks can take any motion if a buyer refuses.
Responding to Reuters’ queries, a UIDAI spokesperson stated Aadhaar verification and authentication occurs solely with the specific consent of the person. Use of Aadhaar-based biometric authentication helps in guarding towards doable misuse, he stated.
“UIDAI often advises all authentication and verification entities to use face or iris authentications to cater to residents whose fingerprint authentication fails.” He added that authentication and verification doesn’t imply storing of information.
The newest advisory follows a authorities order final 12 months that mandated the quoting of an Aadhaar card or PAN quantity for making deposits or withdrawals exceeding 2 million rupees in a monetary 12 months.
The federal finance ministry didn’t reply to requests for remark.
© Thomson Reuters 2023
Discover more from News Journals
Subscribe to get the latest posts sent to your email.
