Aadhaar Seeding means linking Aadhaar holder's Unique 12 digit Aadhaar number with their Personal Identification Documents or Benefit Cards such as Scholarships, Pension ID, MNREGA Job Card etc.
Aadhaar seeding links Aadhaar number with primary bank account number. Since the seeding/authentication is OTP based, only those customers whose mobile numbers are updated in bank accounts as well as in aadhaar database can use this facility.
The fundamental objection to this linking of services is that all information on an individual will be available at a single place, which could make surveillance easier and also increase the risks if this information is hacked. “As of now, your bank knows something about you, your insurance company knows something and your mobile phone company knows something about you. Each of these are different silos of information. When these converge, which is then accessible to a single person, that person knows almost everything about you.