AADHAAR CARD : What it can do for all of us and Where could be Scope of Caution.

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Lets Understand few things about Aadhaar(UIDAI)

What is Aadhaar(UIDAI)?

Aadhaar(UIDAI) is a 12 digit individual identification number issued by the Unique Identification Authority of India on behalf of the Government of India.

This number will serve as a proof of identity and address, anywhere in India.

Any individual, irrespective of age and gender, who is a resident in India and satisfies the verification process laid down by the UIDAI can enrol for Aadhaar(UIDAI).

Each Aadhaar(UIDAI) number will be unique to an individual and will remain valid for life. Aadhaar(UIDAI) number will help you provide access to services like banking, mobile phone connections and other Govt and Non-Govt services in due course.

 

–          12 Digit Unique Number

–          For Every Individual, even for Kids.

–          For every Resident

–          Free Of Cost

–          Enables Identification

–          Not Mandatory (My Recommendation that everyone should have)

 

Reasons what can be improved:

This is not new govt policy , all existing social policies remains intact, This is only to ensure that implementation of policies can be improved.

See what can be improved:

– KYC (Know your Customer)can be validate through UIADI.

– All Resident Indians can have Bank Accounts. This can act as Resident Proof.

– Subsidy can reach to actual needy people, This depends upon implementation.

– Aadhaar(UIDAI) can plug massive misuse of subsidy

– Help to reduce Corruption

– PDS System can be linked

– Driving License/Voter Card/Ration Card frauds can be controlled once this

is attached to existing Identification system

-Govt Spending can be controlled if direct Cash Transfer of subsidies to accounts enable

e.g : We have strong PDS (Public Distribution System) Workforce which are ensuring to reach subsidies to various sections of societies. By enabling Technology of Direct Transfer this cost can be controlled and in effective manner Subsidies can reach to Needy.

 

What Aadhaar(UIDAI) can do for people from rural areas: 

 

– Aadhaar(UIDAI) can be used in the transfer of wages and welfare payment from the government to its recipient.

 

– The main advantage of this process is that it will eliminate any needless delay in reaching to its beneficiary. Also at the same time it will also bring a check in the corruption in between the transaction processes.

– Since account linked to Aadhaar(UIDAI), they will serve as Know Your Customer (KYC) authentication for driving license, passport, etc.

– People can receive their wages and payments directly without losing any money in the form of bribes.e.g MNREGA workers can receive their wages on time and directly to their account.

– There can also be cash transfer for subsidies like cooking fuel such as kerosene oil, LPG, etc. food and fertilisers.

– There can be cash transfer for homes under various schemes like Indira Awas Yojna, Anganwadi Staff, girl scholarship, etc.

 

What Aadhaar(UIDAI) can do for people from urban areas: 

 Apart From Above Stated benefits Urban Area’s Resident can be benefitted

      

–  Aadhaar(UIDAI) can be used in Know Your Customer (KYC) authentication for insurance, demat account, mutual fund schemes, landline and mobile phones, vehicle purchase and new gas connections.

Some Challenges It might Face

  •  Correct Implementation: Any problem in implementation will lead havoc as this will be base for each benefit.
  •  Un-employment: Might lead to unemployment as where ever Tech entered it leads to unemployment  of low  skilled people.
  •  Awareness: Awareness/Education must be sufficient about benefits of AADHAAR(UIDAI).
  •  Special Focus Needed on Rural Belt.


Your Suggestions Welcome!!

 

Regards

Finance_Doc

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