RBI to seek clarification from Supreme Court on usage of Aadhaar

The Reserve Bank of India (RBI) is planning to seek a clarification from the Supreme Court on whether banks can use customers’ Aadhaar numbers as an acceptable form of identity.

“RBI is likely to ask the Supreme Court to elaborate on certain parts of the 11 August interim order,” said a lawyer familiar with the matter who declined to be named.

The apex court said in an order last month that Aadhaar was neither mandatory nor a condition for accessing benefits one was already entitled to.

It also ordered that the Aadhaar number should not be used for any purpose other than the public distribution scheme and LPG subsidies.

The court was ruling in cases against Aadhaar use that were filed over concerns, including privacy issues.

Interestingly, RBI governor Raghuram Rajan recently advocated the use of Aadhaar saying countries like the US have used unique identification such as social security numbers without violating privacy.