Presentation on Aadhaar Unique Identification System in India

8/18/2019 Presentation on Aadhaar Unique Identification System in India

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“Aadhaar”: ID Platform for

inclusive developmentErnst & Young LLP, India

2 March 2016

Disclaimer: The views expressed in this paper/presentation are the views of theauthor and do not necessarily reflect the views or policies of the AsianDevelopment Bank (ADB), or its Board of Governors, or the governments theyrepresent. ADB Does not guarantee the accuracy of the data included in the

presentation and accepts no responsibility for any consequence of their use.Terminology used may not necessarily be consistent with ADB official terms.


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World Population today:

~6 Billion

World Population 50 years ago:

~3 Billion

UK70 Million

US402 Million

China1.4 Billion (+)

Japan102 Million (-)

Russia108 Million (-)

Germany74 Million

By 2050

* The population figures estimated for the year 2050: Can the Earth cope? Video of Sir David Attenborough

Practices to provide services and their effective consumption cannot remain the same!

India1.6 Billion (++)

Rising challenge for public service delivery


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Governments cannot afford the status quo inG2P delivery anymore

Problems in delivering G2P programs

► Ghost beneficiaries► Massive leakage of benefits disbursed in

cash, or at subsidized prices (food, fuel,fertilizer & others)

► Inefficient disbursement systems► Low information visibility

“When you have to distribute public goods on a massive scale, you need to identify who youare making the distribution to, so that the right people get it .”

- Prof. Joseph Stiglitz, Nobel laureate economist

Centre

State/ Province

District/ City

Town/ Village

B e n e

f i t s o

f G 2 P p r o g r a m s

f l o w

t h r o u g

h s e v e r a

l

h i e r a r c

h i c a

l l a y e r s ,

l e a

d i n g

t o h i g h v o

l u m e s o

f l e a

k a g e s


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The challenge for Government of India was...

Absence of electronic systems with uniquely identifiable beneficiaries was leading to largevolumes of leakage of limited public resources

Of over USD 60 B spent annually byGovt. of India on welfare payments:

40% leakage in food grainsdistribution

USD 200 M leakage in cooking gasdistribution (domestic use)

Less than 20% of Governmentbenefits reached intended recipients$$

Food Health Cash

benefits

Fuel Fertilizer


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…and existing ID systems were just not ready

A unique/ universal ID, much like the US Social Security Number (SSN), had the potential tobecome the focal point of inclusion, service delivery and more!

1.25 B residents

Passport

Tax ID (PA N Card )

Driver’s license

50 M

200 M

200 M

Need for a new ID

► Limits access to publicservices

► Restricts participation informal economy throughfinancial inclusion N

o I D f o r

h i g h

% o

f

p o p u

l a t i o n

► ‘Breaking the loop’ - IDrequiring other IDs asproofs

► Separating ID from itsapplications U

n i v e r s a

l

a l t e r n a

t i v e


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Unique ID Authority of India (UIDAI) set up to issue a digital and unique ID to every resident,and to create an electronic ID platform for inclusive development systems

The solution for India in 2009!


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In Conclusion..What India learnt from global ID programs

• Using biometrics, besides demographic data, can help

maximize accuracy, inclusion for 1.25 billion, and securityData Capture

• Standardization of software and equipment with openstandards, competitive procurement to drive down costs

Standardizedenrolment

• Card- less system with focus on “ID number” rather thancard / smart card is convenient, economical and secureForm Factor

• Random number is essential to ensure privacy and avoiddiscriminationNumber Format

• Online authentication by authorized agencies is easy to useand ensures security

Mode ofAuthentication

• Open ID platform with easy integration of ID in applicationscreates incentives for use and drives innovationID as a Platform

The concept of identity is fast evolving, with online, token less systems shaping up the future


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5555 4444 5555

► Number, and not a card► Random number, no profiling► One person, only one Aadhaar► Anytime, anywhere authentication

Aadhaar - A simple idea withmammoth ambition…

OneIdentity

One Individual One Unique Identity

Service DeliveryTransformation

An ID to every

resident

Gateway to social &financial inclusion

September 2010: First Aadhaar issued

Feb 2015: 750 Million Aadhaar issued

1

2

3

Dec 2011: 100 Million Aadhaar issued

Jan 2016: 970 Million Aadhaar issued4


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…to enable innovative developmentapplications in public and privatesector

► Remove fake, duplicate, ghost records; improve data quality► Example: Cleaning of scholarship database with genuine students

Databasecleanup

► Enrolling in to a new service; Applying for a new product

► Example: Registration for Pensions, Mobile connection, Bank accountKYC

► Money Transfers, Consumer Banking► Example: Rural livelihood wages, Micropayments, Subsidy transfer

Financialtransactions

► Attendance/ Presence, Access to location

► Example: Attendance of govt. staff, purchase subsidized food-grains

Access

control

DBcleanup KYC

Financialtransaction

Presence / access

► Use of an ID as a mechanism for linking databases► Example: Electronic health records, credit history

ID as unifier

DB: Database


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Access

Mobilityhoice

Impact of Aadhaar

Convenience

Citizen Centric

Governance

“bringing citizen to the centre ofdeb te”


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An integrated approach to electronic service delivery, with “resident focus” instead ofprocess and policy focus to bring in the desired accountability and transparency

Aadhaar enabled Resident Data Hubs

FoodRural

Employ-

ment

PensionScholar-

shipsLand

RecordsVehicle

Reg.Nutri-tion

HealthInsura-

nce

PublicHealth

R e s i d e n

t D a

t a H u

b s a

t t h e c o r e

Creating logical unified views

► Linking Aadhaar numbers in all databases inshort run, and creating a data hub eventually► Remove fakes & improve data quality over a

defined period► Department specific data and entitlement

parameters such as socio-economic statuscan be defined by departments or at a centralhub

Identity

Entitlement

Application category #1Beneficiary database cleanup

DBcleanup KYC


Presence / access


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Huge opportunity to simplify services such as banking, telecom & government welfareprograms, to enrol beneficiaries seamlessly with standardized data

Input with resident consent

► Aadhaar Number AND► One or any combination:

Finger-printIris ScanOTP on registered mobile

► Resident’s demographic details (Name,DoB, Gender, Phone, email)

► Image / Photo of the resident► Resident’s address as with UIDAI

Response

Resident Service operatorwith handheld

device

Parameter

Name Meena Kumar

Gender Female

DoB 11/11/1999

Pincode 302015

Address Golf Course Road, Gurgaon

Resident Record

eKYC Record

Home Search View Record Settings Help Logout

Copyright © 2015. All Rights Reserved.Terms of Use | Privacy Policy

Exit

DBcleanup KYC


Presence / access

Application category #2Know Your Customer (KYC)

OTP: One Time PasswordDoB: Date of BirthUIDAI: Unique ID Auth. of India


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Bank account openingPaperless account opening

G2P Payments using ID asFinancial Address

ID linked to bank accountson a central mapper

Last Mile Connectivity

with InteroperabilityID for banking transactionsusing online mobile / micro-

ATM transactions

Platforms for financial inclusion are expected to reduce leakages, and enhance access

Addresses challenges for Government

► Financial Inclusion with easy accountopening and last mile network setup

► Targeted delivery of funds

Addresses challenges for Banks

► Reduced customer acquisition cost► Reduced cost of transactions► Interoperability with other banks

CustomerService PointGovernment

Bank

End-to-end ID view for benefitsdelivery

DBcleanup KYC


Presence / access

Application category #3ID as ‘Financial Address’


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Aadhaar verification platforms can enable creation of customized dashboards to monitorpresence and access, and can thus check daily outlay of goods/ payments etc.

1Electronic ID verification can beused to monitor attendance andavailability of government staff, aswell as workers of rural ‘cash -for-work’ program

2Welfare programs such as sale ofsubsidized food-grain, kerosene orfertilizer can use ID verification ofbeneficiaries

3

DBcleanup KYC


Presence / access

Application category #4Presence and access control

‘Man -less’ identity establishmentand access for areas with highsecurity needs can be enabled


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In Conclusion..

Envisioning possibilities for India

► An open and scalable ID Platform

► Nurturing a partner ecosystem with payment partners playing a key role

► Simple idea for a billion people V/s complex idea for a privileged few

► Promotes a platform approach to allow entrepreneurial imagination to solvethe problems of India

In summary

"Effective social safety nets like Aadhaar-card based direct cash transfers scheme are being set up to redu e povertyin India"

- Prime Minister Manmohan Singh, December 2012


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ImmigrationPolicing Security

TradingEmergency

Services

Corporate Affairs

PublicHealthcare

Statisticsand Planning

Transport

TaxationSocial Security

Post eVoting

AadhaarID-enabledservices

Banking/FI

Education

eCommerce

Travel andHospitality

Telecom

PrivateHealthcare

UtilitiesEmployers

In Conclusion..

ID applications inInternet of Things

Self-ServiceKiosks

PCs/MobileDevices

ATM Homes

Trains Buses

Automobiles Checkpoints

Envisioning a future state for Aadhaar


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Presentation on Aadhaar Unique Identification System in India