Right To Privacy "Aadhaar In Banking Sector And Its Socio-Legal Implications"

ABSTRACT The Recognition of Right to Privacy as a Fundamental Right by the Indian Supreme Court in K.S. Puttaswamy case was one of the watershed moments in Indian Constitutional Jurisprudence. Within the framework of this judgment, this paper critically examines the socio-legal implications of Aadhaar framework interfacing between Aadhaar, financial regulations particularly in banking sector and the constitutional guarantee of Right to Privacy under Article 21 of the Indian Constitution. The study analyses the expansion of Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and the mandatory linking of Aadhaar with bank accounts and government welfare schemes. This generated significant legal debate, including the concerns raised in the dissenting opinion of Justice D.Y. Chandrachud. The study analyses how Aadhaar-based authentication norms and its effectiveness in preventing money laundering, tax evasion and other banking frauds under PMLA, 2002 and the effectiveness of identity verification frameworks in strengthening transparency, while at the same time assessing whether mandatory linking of Aadhaar with bank accounts and other welfare schemes disproportionately interferes with the individual Right to Privacy. The research paper further adopts the reasoning as adopted by the Supreme Court in its judgment including the proportionality test and the dissenting concerns regarding informational self-determination and state overreach. The research paper further examines the legal remedies and institutional safeguards in cases of privacy violations by financial institutions in light of IT Act, 2000 and DPDP Act, 2023. The research concludes that while Aadhaar has contributed to improved welfare scheme delivery and financial inclusion, the enactment of a robust personal data protection regime remains essential to maintain constitutional balance between state interests and individual liberty. Keywords: Right to Privacy, Aadhaar Act 2016, Prevention of Money Laundering Act 2002, Banking Regulation in India, Data Protection and Informational Self-Determination.