Direction: Read the given passage carefully to answer the following questions. Each question will have five alternatives as its answer. Choose the correct option as your answer.

In an innocuously titled report on “Decentralized Finance and Digital Assets” released last Saturday, global rating major Moody’s Investors Service has flagged some uncomfortable home truths about India’s ambitious digital identification (ID) programme for residents, Aadhaar. As the world’s largest digital ID programme with biometric and demographic details of over a billion residents, Aadhaar stands out for its scale. But at a broader level, the agency has red-flagged security and privacy risks from “centralised” digital ID systems such as Aadhaar, where a single entity controls identifying credentials. Moody’s, which has mooted decentralised ID systems that give users more control over their data, has also lent weight to worries about the efficacy of Aadhaar’s biometric-based authentication systems to verify identities. “The system often results in service denials, and the reliability of biometric technologies, especially for manual labourers in hot, humid climates, is questionable,” it said. While this observation is of relevance amid the government’s push to switch all payments under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to an Aadhaar-based payment system, it echoes the concerns raised ever since its launch under the United Progressive Alliance regime.