AADHAAR CARD

INTRODUCTION Aadhaar program was launched in 2009 with a main objective to give universal identity to every resident Indian. However in the initial stages of enrolment people faced lot of difficulties such as technical snags, incorrect data displayed etc. The importance of Aadhaar card was unclear. But many of the issues were resolved and people can now get the card with much ease as its acceptance as a mandatory document for various initiatives has been officially made. In addition to this it will help in reducing the corruption since every individual carries only one unique number.

USES OF AADHAAR CARD Aadhaar based Direct Benefit Transfer (LPG Subsidy) Jan Dhan Yojana Digital Locker Voter Card Linking Provident Fund Opening new bank account

Aadhaar based Direct Benefit Transfer (LPG Subsidy): The 12 digit individual identification number on Aadhaar card is used to get LPG subsidy amount directly in the bank account. To get this benefit you need to visit your area’s distributor and get Aadhaar number linked to the 17 digit LPG consumer number. Although now you can get direct benefit transfer by linking bank account to the LPG number. Jan Dhan Yojana: The guiness world record holder scheme Pradhan Mantri Jan Dhan Yojana (PMJDY) accepts Aadhaar card/number as the only document sufficient to open the bank account.  Digital Locker: Government of India has launched digital locker (DigiLocker) system for everyone for storing all personal document on the government’s server. And sign-up process for DigiLocker requires person to link his/her 12 digit Aadhaar card number. 

Voter Card Linking: Starting 9th March 2015, Aadhaar card UIDAI number would be linked to the voter ID’s. This action is taken to eliminate bogus voters. Once an Aadhaar number is linked, it would become impossible for an multiple voter ID card holder to make it’s illegal use, as registration requires voter card holder to be physically present and produce Aadhaar card to the polling booth officer for linking. Provident Fund: Similar to pension, provident fund money will be given to the account holder who’ve registered their Aadhaar number with employee provident fund organization (EPFO). Opening new bank account: Aadhaar letter provided by UIDAI is now acceptable by banks as a valid proof to open bank account. In fact, it can serve as an address proof as well provided address on Aadhaar card and address proof perfectly matches. i.e. no need to produce bunch of documents to the banks for opening the account. 

AADHAAR ENABLED PAYMENTS Financial inclusion is expected to be a key application of Aadhaar authentication. Adoption of Aadhaar and Aadhaar authentication in Indian banking system is expected to change the financial landscape of country. To enable same, UIDAI has partnered with various stakeholders including RBI, NPCI, IBA and banks to develop two key platforms: Aadhaar Payments Bridge (APB) – A system that facilitates seamless transfer of all welfare scheme payments to beneficiary residents' Aadhaar Enabled Bank Account (AEBA) Aadhaar Enabled Payment System (AEPS) – A system that leverages Aadhaar online authentication and enables AEBAs to be operated in anytime-anywhere banking mode by the marginalized d financially excluded segments of society through microATMs.

Aadhaar Payments Bridge APB is a repository of Aadhaar number of residents and their primary bank account number used for receiving all social security and entitlement payments from various government agencies. It requires using Aadhaar number as the primary key for all entitlement payments. This would weed out all fakes and ghosts from the system and ensure that the benefits reach the intended beneficiaries. This benefit has an even greater ramification as more and more social security programs are moving from in-kind to in-cash subsidies.

Process flow of apb NPCI Sponsor Bank Settlement Agent NPCI Mapper Sponsor Bank NPCI Destination Bank Presentation Settlement File Settlement file Return Settlement File Transcation initiation Funds made available Information Sent to Beneficiary Settlement Agent Government Department Beneficiary Transaction Response Transcation Origination Process flow of apb

APB Process Steps The key steps in posting payments via APB are: Service delivery agency that needs to make payments to its beneficiaries (such as MGNREGA wages, scholarships disbursement, old age pension etc.) provides APB File containing details of Aadhaar number, welfare scheme reference number and the amount to be paid to its bank (called sponsor bank). Sponsor bank adds bank IIN (Institute Identification Number provided by NPCI to participant banks) to the APB file and uploads onto NPCI server. NPCI processes uploaded files, prepares beneficiary bank files and generates settlement file Settlement file is posted to bank accounts with RBI. Destination banks can download the incoming files for credit processing after the settlement file has been processed.

Aadhaar Enabled Payment System The Report of the Committee on Financial Inclusion chaired by Dr. C. Rangarajan, made two important observations: Technology has to enable the banks to go where the customer is present, instead of the other way around. Technology should allow interoperability among different systems adopted by different banks. The Aadhaar Payment System is intended to address both the above issues. AEPS empowers the marginalised and excluded segments to conduct financial transactions (Credit, Debit, Remittances, Balance Enquiry, etc) through microATMs deployed by Banks in their villages.

Steps involved for transaction Step I: Go to Micro-ATM Step II: Select option like • Cash withdraw • Deposit Cash • Pay • Check Balance • Mini Statement 59 Step III: Enter Pin Number Step IV: Enter Location Code Step V: Enter your Adhaar Card Number 60 Step VI: Scan your finger print Step VII: See ‘Transaction Successful’ message Collect Receipt Steps involved for transaction

AEPS Process Steps The key steps in doing transactions via AEPS are: Resident provides his/her Aadhaar number, details of financial transaction sought and fingerprint impression at the microATM device. Digitally signed and encrypted data packets are transferred via Bank Switch to NPCI to UIDAI. UIDAI processes the authentication request and communicates the outcome in form of Yes/No. If the authentication response is Yes, bank carries out the required authorization process and advises microATM on suitable next steps.