Even if Aadhaar numbers were proof of identity, which it is not, its use to make money transfers make financial transfers un-auditable, propagate money laundering and financial fraud. There is no justification for introducing an unverified and un-audited number to allow payments and settlements
The Reserve Bank of India (RBI) is empowered by the Payment and Settlement Systems Act, 2007 to regulate various payment systems in the country. About 59 organisations are authorised by the RBI under this Act for setting up and operating payment systems in India. In its vision document 2012-15 the RBI states its mission is “to ensure payment and settlement systems in the country are safe, efficient, interoperable, authorised, accessible, inclusive and compliant with international standards”. In compliance with international standards, therefore, all key systems should be secure (that is, have access controls, be equipped with adequate safeguards to prevent external intrusions, and provide audit trails), reliable, scalable and able to handle volume under stress conditions.