What will happen to Aadhar Linked Services after Death?

Now in India anyone can access his or her data available on Income Tax, Insurance, Banking, DigiLocker, Transport, Taxes and hundreds of other platforms through Aadhar Based OTPs. Have you ever thought as to what happens to your Digital Assets and/or Financial Assets after your death?
The Legal heir, who has access to the Registered Mobile Number and/or Registered email ID of the Deceased, can access all the data of the deceased kept in the Digi Locker or Linked to Aadhar OTP authentication. If the access of the Regd Mobile is with the wrong person it can have far-reaching consequences as fraudulent persons can misuse the data to deprive the genuine Legal Heirs of the Deceased. How this misuse can be stopped:
Corrective Measures by Government of India:
The Government of India should immediately do the following:
  1. Digitalise the Records of Registrar of Births and Deaths and integrate with Aadhar Data Base in such a way that immediately on the Date of Registration of Death of any person – the UIDAI database will send signals to all other services like Banking, Insurance, PAN, PRAN, UAN, LPG Subsidy – to immediately put a Freeze on usages of the Services by unauthorized persons.
  2. Allow Nomination Facilities in DigiLocker, All Digi Assets

Such an arrangement will immediately stop the following types of frauds:

  • Unauthorized withdrawal of money through ATM, Net Banking from Deceased Account.
  • Selling of Shares and Securities from Demat Accounts of Deceased Persons.
  • Transferring e-Properties even after Death without going through the Succession Process.
  • The list is long and unending…..

Precautions to be Taken by immediate Legal Heirs:

  • First of all wherever possible the accounts should be opened in the Joint Names with “Either or Survivor” mandate supported by Nomination by each Joint Account Holder.
  • Wife, Son, Daughter or immediate kin should take the custody of the Mobile and SIM of the Deceased. In the times to come, even the Network Providers will make provisions for Nomination in respect of SIM of the Deceased Person for a limited period of say 6 to 12 months to carry out the necessary Transfers of Portfolios to the Legal Heirs.

More Research is done by the author and likely impacts of digitalization will be covered while updating this article in the near future.

 

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