AePS

For financial inclusion of India, Reserve Bank and other development agencies have employed working groups for studies. The study suggests deployment of Aadhaar based payments along with improving central infrastructure. By providing IIN (Identifying the Bank to which the customer is associated), Aadhaar Number, Fingerprint captured on Aadhaar enrolment, Payments can be initiated.

Aadhaar Pay is meant for merchants to receive digital payments from customers over the counter through Aadhaar authentication. It allows for any merchant associated with any acquiring bank on Aadhaar Pay service, to allow the merchant to accept payment from a customer of any bank, by authenticating the customer’s bio-metrics – currently only fingerprints, directly from the customer’s Aadhaar enabled bank account and receive the sale proceeds instantaneously directly into merchant’s own bank account.

Authentication and authorisation

AePS is using Aadhaar for both authentication and authorisation. UIDAI introduced first Aadhaar car by September 2010. So far, 100.9 crore people has been enrolled. Government of India introduced Aadhaar identity project to fill the identification gap due to lack of documentation such as documentation. It’s greatest promise was to reduce fraudulent welfare payment claims and corruption. Government had introduced direct benefit transfer for subsidies on cooking gas, MNREGA, kerosene etc.
Recent developments with Aadhaar project boosted Indian financial technology sector. They have made payment process simple. For each transactions, bio-metric data is verified either directly or indirectly.

Advantages and disadvantages in associating Aadhaar with Fin-Tech - So far, an empirical study on seeding Aadhaar number with banking haven not done except one state sponsored on 2016. They also had raised shortcoming of security concerns. Their experiment in Jaipur gives some interesting facts.

• 94 percentage of population has been enrolled.
• 89 percentage of them seeded with bank accounts.
• Only three percentage disagrees to the claim - Aadhaar is advantageous and raised security concerns.
• 87 percentage thinks this project will lead better governing.
• 78 percentage believes it could eliminate middleman taking advantages.

We could make Aadhaar enabled Payments very quickly. It allows banking in any sort of digital devices such as computers, mobile phones or even microATMs. Unlike physical money, It have digital existence with government regulations. Furthermore, government could tax for any transaction.

AePS is vulnerable in the sence it is direclty connected with Aadhaar. The trade-off will be user privacy. Comparing other payment processors like Visa or Mastercard, rate of false positives are 10 percentage which is very high. In other words, when you are making a payment of 100 ruppees, the you will be losing 10 rupees. Any agency - Public or Private, with enough computation power could steal our private data easily. In monetory terms, it is not useful in micro-payments.

Privacy

In practice, Aadhaar project is making individuals' privacy at limbo. By design, It can be used as a surveilling citizen. Again, this become unconstitutional, since the freedom of speech and press are violated and hence no space for whistle-blowers \cite{Hodson2014}. The poor are paying heavily for Aadhaar. Government is treating poor like a guinea pig. Government adovocates for Aadhaar in court and they claim proof of privacy by constructing a wall and bio-metric database is hack proof. Since new developments with Cambridge Analytica, it is proven that demographic data could utilised to target attacks. MS Sreeram, thinks it is more of assumptions than ground realities.

Services offered by UIDAI are e-KYC and Aadhaar Authentication. In Fin-tech, the service provider will act as a 4th party service provider, which will act on behalf of government and private agencies will collect and consolidate data. The unique, public, number will act as a primary key and ultimately will result big corporations in cross platform data analytics.

Similar bio-metric identity management project exists notably, only in developing countries and there is not a single developed country have this. Some are practising some other forms of identification document under very strict legislation. Great Britian tried to implement similar project named Identity Project. Academia \cite{Wellcome2005} and others fought very hard and the project scrapped.

The harsh reality is, seeding Aadhaar with Fin-Tech will help people with big eyeballs for surveilling their masters - the commons. A very impressive propaganda machinery which has made not just the judges, but some sections of the population to believe that there are some genuine benefits of Aadhaar. And, in fact, some of them quiet laughably believe that the benefits are actually for the poorest sections of society.

Conclusion

Incorporating an identity project with financial transactions are introducing new issues for end users with their privacy.