Unique Identification Number - Copy

8/3/2019 Unique Identification Number - Copy

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Unique Identification Number(UID) is a recently finalized initiative by theGovernment ofIndia to create and manage a centralized identification system for all the adult

citizens and residents ofIndia, which can be utilized for a variety of identification purposes.Nandan Nilekani former co-chairman ofInfosys has been appointed as the head ofUnique

Identification Authority of India and will have a ministerial rank.[1] He has decided to step downfrom the board of Infosys Technologies.[2] The authority is notified as an attached office under

the aegis of the planning commission. Formally they announced a new name and logo for the

project called as Aadhaar meaning Support in Hindi.

BackgroundUnique identification project was initially conceived by the Planning Commission as an initiative

that would provide identification for each resident across the country and would be used

primarily as the basis for efficient delivery of welfare services. It would also act as a tool for

effective monitoring of various programs and schemes of the Government.

a) The concept of a unique identification was first discussed and worked upon since 2006 whenadministrative approval for the project "Unique ID for Below Poverty Line (BPL) families" was

given on 03 March 2006 by the Department of Information Technology, Ministry of

Communications and Information Technology. This project was to be implemented by theNational Informatics Centre (NIC) over a period of 12 months. Subsequently, a Processes

Committee to suggest processes for updation, modification, addition and deletion of data fields

from the core database to be created under the Unique ID for below BPL project was set up on 03July 2006. This was set up under the chairmanship of Dr. Arvind Virmani, Principal Adviser,

Planning Commission.

b) A "Strategic Vision on the UIDAI Project" was prepared and submitted to this Committee byM/S Wipro Ltd (Consultant for the design phase and program management phase of the Pilot

UIDAI project). It envisaged the close linkage that the UIDAI would have to the electoral

database.

c) At the same time, the Registrar General of India was engaged in the creation of the National

Population Register and issuance of Multi-purpose National Identity Cards to citizens of India.

d) Therefore, it was decided, with the approval of the Prime Minister, to constitute an empowered

group of Ministers (EGoM) to collate the two schemes the National Population Register underthe Citizenship Act, 1955 and the Unique Identification Number project of the Department ofInformation Technology. The EGoM was also empowered to look into the methodology and

specific milestones for early and effective completion of the Project and take a final view on

these. The EGoM was constituted on 04 December 2006.]
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1.1: Subsequently, on 22 January 2009 the Cabinet Secretary in pursuance of the decisions of the

Empowered Group of Ministers considered the proposal submitted by the Department of

Information Technology regarding the governance structure and recommended that

a) The notification for constitution of the UIDAI should be issued immediately.

b) A High Level Advisory, Monitoring and Review Committee headed by Deputy Chairman,

Planning Commission to be constituted to oversee the work of the authority.

c) A Member, Planning Commission or the Secretary, Planning Commission may also beassigned the task of looking after the work proposed for the Chief UIDAI Commissioner.

d) Core Team to be put in place.

The UIDAI was given the responsibility to lay down plan and policies to implement UIDAI

scheme and shall own and operate the UIDAI database and be responsible for its updation andmaintenance on an ongoing basis.

Prime Minister's Council

Prime Minister's Council on UIDAI Authority - Subsequently, on 02 July 2009, the Governmentappointed Shri. Nandan M. Nilekani as Chairman of the Unique Identification Authority of India,

in the rank and status of a Cabinet Minister for an initial tenure of five years. Mr. Nilekani has

joined the UIDAI as its Chairman on 23 July 2009. The Prime Minister's Council of UIDAIAuthority of India was set up on 30 July 2009. The Council is to advise the UIDAI on

Programme, methodology and implementation to ensure co-ordination between

Ministries/Departments, stakeholders and partners. The Council would meet once every quarter.

The First Meeting of the Prime Minister's Council of UIDAI Authority took place on 12 August2009.

Cabinet Committee

The Government of India issued orders constituting the Cabinet Committee on UIDAI Authority

on 22 October 2009. It is headed by the Honourable Prime Minister and consists of the Minister

of Finance, Minister of Agriculture, Minister of Consumer Affairs, Food and Public Distribution,

Minister of Home Affairs, Minister of External Affairs, Minister of Law and Justice, Minister ofCommunications and Information Technology, Minister of Labour and Employment, Minister of

Human Resource Development, Minister of Rural Development and Panchayati Raj, Minister of

Housing and Urban Poverty Alleviation and Minister of Tourism. The Deputy Chairman Planning

Commission and Chairman UIDAI are special invitees. The functions of the Committee, which isheaded by the Honourable PM would be as under :

All issues relating to the Unique identification Authority of India including its organisation,

plans, policies, programmes, schemes, funding and methodology to be adopted for achieving the

objectives of that Authority.

Mandates and Objectives


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The Unique Identification Authority of India (UIDAI) has been created as an attached office

under the Planning Commission. Its role is to develop and implement the necessary institutional,

technical and legal infrastructure to issue unique identity numbers to Indian residents.

On 25 June 2009, the Cabinet also created and approved the position of the Chairperson of the

UIDAI, and appointed Mr. Nandan Nilekani as the first Chairperson in the rank and status of aCabinet Minister. Mr. Ram Sewak Sharma has been appointed the Director General.

Mission and Timeline

The Mission

The role that the Authority envisions is to issue a unique identification number (UIDAI) that canbe verified and authenticated in an online, cost-effective manner, which is robust enough to

eliminate duplicate and fake identities.

The Timelines

The first UIDAI numbers will be issued over the next 12-18 months counted from August 2009.The first number would be issued between August 2010 to February 2011. Over five years, the

Authority plans to issue 600 million UIDs. The numbers will be issued through various 'registrar'

agencies across the country.

Organization Details

UIDAI was set up as an attached office of the Planning Commission through Notification dated

28.01.09 with a core team of 115 officers and staff. Under the Notification, 3 Posts (DG, DDGand ADG) were sanctioned for Headquarter with 35 UID commissioners in each of the States. It

was thereafter decided to have Regional Offices in Bangalore, Chandigarh, Delhi, Hyderabad,Guwahati, Lucknow, Mumbai and Ranchi with their jurisdiction covering specific states acrossthe country.A Technology Centre has been set up in Bangalore. 268 additional posts were created

in September 2009. UIDAI at present has a total sanctioned strength of 383 officers and

subordinate staff.

Headquarter's Organisation: The UIDAI is headquartered in Delhi with Shri Nandan Nilekani as

the Chairman and Shri R.S. Sharma as the Director General and Mission Director. In the

organizational design, the DG is to be assisted by seven Deputy Director Generals, officers of thelevel of Joint Secretary, who are in charge of various Wings. One of the DDGs heads the Finance

Wing. The DDGs would be supported by 21 ADGs, 15 Deputy Directors, 15 Section Officers and

15 Assistants. The HQ has a total sanctioned strength of 146 number of officers and staffincluding the Accounts and IT branch. All the officers and staff have been appointed on

deputation either under Central Staffing Scheme or through bilateral route. Of the sanctioned

strength, 85 are in position at present. Appointments for the remaining vacancies are in process.

Regional Offices' Organisational Structure Each of the Regional Offices is headed by a Deputy

Director General (DDG). The support structure below comprises 4 ADGs, 3 Deputy Directors, 3

Section Officers, 1 Senior Accounts Officer and 1 Accountant and personal staff. The list of


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regional offices with the States/UT that they are covering is listed below:

Planning Commission

The Prime Minister is the Chairman of the Planning Commission, which works under the overall

guidance of the National Development Council. The Deputy Chairman and the full time Members

of the Commission, as a composite body, provide advice and guidance to the subject Divisionsfor the formulation of Five Year Plans, Annual Plans, State Plans, Monitoring Plan Programmes,

Projects and Schemes.

Chairman

Nandan Nilekani is currently the Chairman of the Unique Identification Authority of India(UIDAI)which aims to provide a unique identification number for all residents of Indiain the

rank and status of a Cabinet Minister. Nandan Nilekani was most recently the co-chairman of the

board of directors of Infosys Technologies Limited, which he co-founded in 1981. Serving as

director on the company's board since its inception to July 2009, he has held various posts atInfosys, including chief executive officer and managing director, president, and chief operating

officer.

Nilekani co-founded India's National Association of Software and Service Companies

(NASSCOM) as well as the Bengaluru chapter of The IndUS Entrepreneurs (TiE). He is amember of the board of governors of the Indian Council for Research on International Economic

Relations (ICRIER) and the president of NCAER (the premier, independent, applied economics


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research institute in India).

He was awarded one of India's highest civilian honours, the Padma Bhushan, in 2006. In 2006 hewas also named Businessman of the Year by Forbes Asia. Time magazine listed him as one of the100 most influential people in the world in 2006 and 2009.

DG and Mission Director

The Chief Executive Officer of the Project i.e. Director General and Mission Director has beenappointed. Mr. R.S. Sharma has been appointed as the first Director General of the UIDAI.

Mr. Sharma was responsible for formulation of State policies in the IT and e-Governance areas.

He also over-saw the implementation of various e-Governance projects in all the Departments ofthe State Government.

UIDAI Biometrics Centre of Competence (UBCC)

The UIDAI Biometrics Centre of Competence (UBCC) is being set up as a part of theorganization needed to deliver on the mandate of issuing Unique IDs to all residents of India.

The UBCC will specify the initial biometrics system and from time to time enhance to introduce

new technologies and best practices. UBCC will evaluate and characterize technology, devices,algorithms and processes to assess what and when specifications need to be revised or enhanced.

It will push the state of art in Biometrics to achieve UIDAI's objectives. It will be a national

resource to other departments for implementing UIDAI compatible biometrics systems.

It will attract and hire world-class biometrics talent. UBCC will build a key group of exceptional

scientists and engineers.

Contents

1 Format

2 Purpose and use
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3 Implementation

4 Project Launch

5 Delivery of Unique Identification Number

Format

The ID system is likely to be a large alpha-numeric string in order to accommodate the count ofbillion-plus citizens of India and ones that will be born in future. The card is likely to have a

16kb or 64kb storage chip embedded.Adding a photograph and biometric data would be planned

progressively.

Purpose and use

The ID is fundamentally being prepared to identify Indian citizens so that better security can be

provided by identifying illegal immigrants and terrorists. However, the real power of the ID is in

its ability to provide ease of identity establishment to Indian citizens when accessing a variety of

governmental and private-sector services.

The likely benefits of the new ID system to the citizens will be as below:

1. Subsidies on food, energy, education, etc. to people who are entitled to receive them.2. Opening bank accounts

3. Getting new telephone, mobile or internet connections,4. New light or gas connections

5. Getting a passport

6. driving license and store your traffic violation records7. Electoral card

8. Family genealogy may be traced

Implementation

In the first phase, the UID will be issued to people living in the coastal villages of AndhraPradesh, Gujarat, West Bengal, Kerala, Goa, Karnataka, Tamil Nadu, Maharashtra and Orissa.The Union Territories of Puducherry, Andaman & Nicobar Islands, Dadar and Nagar Haveli as

well as Lakshadweep shall also be covered in the first phase. The first lot of cards is expected to

be delivered by early 2011.
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The Aadhaar (UID) number is expected to roll out by February 2011 and finance ministry

officials hope the mandatory use of the UID for the issue of PAN cards in the future would help

curb the proliferation of duplicate PAN cards.

Project Launch

Project Aadhar was launched recently by the UPA Chairperson Sonia Gandhi, Indian Prime

minister Manmohan Singh, Ashok Chavan, K. Shankarnarayanan and UIDAI chief Nandan

Nilekani in Tembhli village of Maharashtra by providing the Unique ID to 10 adivasis.

UPA Chairperson and Indian Prime Minister spoke about the benefits and positive outcomes ofthe Unique ID projects in India.

Four-year-old Hitesh Sonawane became the youngest member to receive the UID card from the

Prime Minister while Ranjana Sonawane became the first Indian to get UID / Unique ID card

through the Project Aadhar

Delivery of Unique Identification Number

An agreement has been setup betweenDepartment of Posts and Unique Identification Authority

of India to Provide complete solution for delivering the Unique Identification to number to all

the citizens of India.

What is Aadhaar?

Aadhaar is a 12-digit unique number which the Unique Identification Authority of India(UIDAI) will issue for all residents. The number will be stored in a centralised database

and linked to the basic demographics and biometric information photograph, ten

fingerprints and iris of each individual. The details of the data fields and verification

procedures are available here.

Aadhaar will be:

Easily verifiable in an online, cost-effective way

Unique and robust enough to eliminate the large number of duplicate and fake identities

in government and private databases

A random number generated, devoid of any classification based on caste, creed, religion

and geography
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Why Aadhaar?

Aadhaar-based identification will have two unique features:

Universality, which is ensured because Aadhaar will over time be recognised and

accepted across the country and across all service providers.

Every resident's entitlement to the number.

The number will consequently form the basic, universal identity infrastructure over

which Registrars and Agencies across the country can build their identity-based

applications.

Aadhaar will ensure increased trust between public and private agencies and residents.

Once residents enrol for Aadhaar, service providers will no longer face the problem of

performing repeated Know Your Customer (KYC) checks before providing services.

They would no longer have to deny services to residents without identification

documents. Residents would also be spared the trouble of repeatedly proving identity

through documents each time they wish to access services such as obtaining a bank

account, passport, or driving license etc.


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By providing a clear proof of identity, Aadhaar will empower poor and underprivileged

residents in accessing services such as the formal banking system and give them the

opportunity to easily avail various other services provided by the Government and the

private sector. The centralised technology infrastructure of the UIDAI will enable

'anytime, anywhere, anyhow' authentication. Aadhaar will thus give migrants mobilityof identity. Aadhaar authentication can be done both offline and online, online

authentication through a cell phone or land line connection will allow residents to

verify their identity remotely. Remotely, online Aadhaar-linked identity verification

will give poor and rural residents the same flexibility that urban non-poor residents

presently have in verifying their identity and accessing services such as banking and

retail. Aadhaar will also demand proper verification prior to enrolment, while ensuring

inclusion. Existing identity databases in India are fraught with problems of fraud and

duplicate or ghost beneficiaries. To prevent these problems from seeping into the

Aadhaar database, the UIDAI plans to enrol residents into its database with proper

verification of their demographic and biometric information. This will ensure that the

data collected is clean from the beginning of the program. However, much of the poor

and under-privileged population lack identity documents and Aadhaar may be the first

form of identification they will have access to. The UIDAI will ensure that its Know

Your Resident (KYR) standards do not become a barrier for enrolling the poor and has

accordingly developed an Introducer system for residents who lack documentation.

Through this system, authorised individuals ('Introducers') who already have an

Aadhaar, can introduce residents who don't have any identification documents,

enabling them to receive their Aadhaar.

Who can get an Aadhaar?

An individual who is a resident in India and satisfies the verification process laid down

by the UIDAI can get an Aadhaar.

How to get an Aadhaar?

The process to get an Aadhaar will be circulated by the local media upon which residents

need to go to the nearest Enrolment Camp to register for an Aadhaar. The resident

primarily needs to carry certain documents which will be specified in the media

advertisement.


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Upon registering for Aadhaar, residents will go through a biometric scanning of ten

fingerprints and iris. They will then be photographed and given an enrolment number

upon completion. Depending on the enrolment agency, residents will be issued an

Aadhaar number within 20 to 30 days.

Features of the UIDAI Model

The Aadhaar will only provide identity: The UIDAI's purview will be limited to the issuance of

unique identification numbers (Aadhaar) linked to a person's demographic and biometric

information. The Aadhaar will only guarantee identity, not rights, benefits or entitlements.

A pro-poor approach:The Mahatma Gandhi National Rural Employment Guarantee Scheme

(NREGA), Rashtriya Swasthya Bima Yojna (RSBY), and Public Distribution System (PDS)

will help bring large number of the poor and underprivileged into the UID system. The UID

method of authentication will also improve service delivery for the poor.

Enrolment of residents with proper verification: Existing identity databases in India are fraught

with problems of fraud and duplicate/ghost beneficiaries. To prevent this from seeping into the

UIDAI database, the Authority plans to enrol residents into its database with proper verification

of their demographic and biometric information. This will ensure that the data collected is clean

right from the beginning of the program. However, much of the poor and underserved

population lack identity documents and the UID may be the first form of identification they will

have access to. The Authority will ensure that the Know Your Resident (KYR) standards do not

become a barrier for enrolling the poor, and will devise suitable procedures to ensure their

inclusion without compromising the integrity of the data.

A partnership model: The UIDAI approach leverages the existing infrastructure of government

and private agencies across India. The UIDAI will be the regulatory authority managing a

Central ID Repository (CIDR), which will issue Aadhaar, update resident information and

authenticate the identity of the residents as required.


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.

.

Technology will undergird the UIDAI system: Technology systems will have a major role

across the UIDAI infrastructure. The Aadhaar database will be stored on a central server.

Enrolment of the residents will be computerised, and information exchange between Registrars

and the CIDR (Central ID Repository )will take place over a network. Authentication of the

residents will be online. The Authority will also put systems in place for the security and safety

of information.


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Application Architecture

Entities and Roles

UIDAI


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The Authority will issue Aadhaar and set standards for enrolment and authentication, to be

universally followed. Initially, UIDAI will design, develop, and deploy the Aadhaar

Application with the help of service providers. Subsequently, the entire operation will be

expanded and operated by an external service provider. In addition to providing the product and

services, the UIDAI is also responsible for recruiting Registrars, approving enrolment agencies

and providing a list of introducers among others. To further enhance the mission, UIDAI will

also help in the creation of services that depend on the Aadhaar authentication.

Enrolment Agency

An agency contracted by the Registrar, subject to certification by the UIDAI, to perform their

duties. Enrolment agencies provide operators and supervisors for the enrolment stations on the

field, and also create the necessary conditions for the optimal enrolment of residents. Enrolment

agencies must collect demographic data prior to an enrolment drive. They must notify residents

and UIDAI, of the enrolment schedule in advance. Enrolment agencies may be empanelled by

the UIDAI for the assistance of the Registrars. However, the Registrars, will be free to engage

any other enrolment agencies as well.

Resident

Residents of India, who wish to obtain an Aadhaar, are expected to provide appropriate

documentation to meet the KYR norms or to be introduced by an appointed introducer. A

resident is defined as a natural person, usually residing in India. Residents are expected to

truthfully provide information and documentation to meet the KYR norms, or be introduced by

an introducer. Further, they are expected to provide biometric information to the UIDAI. They

can expect a smooth experience with the enrolment agency, and a swift response to various

issues that they may have. Residents will have access to their data, and the ability to identify

when they were authenticated (for a period of time). Access to data of other residents is to be


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restricted by the UIDAI.

Authenticator

An authenticator is an agency that uses the UIDAI system to authenticate a resident.Authenticators may use demographic data and/or biometric data in addition to the resident's

Aadhaar. The authenticator must use the appropriate form of authentication that provides

him/her with the necessary assurance for the transaction. Authenticators must register with the

UIDAI and provide an estimated usage (primarily for the provisioning). Authenticators may

have presence at multiple locations, at each of which they deploy authentication devices.

Authenticators may be billed by the UIDAI for certain service levels. The billing relationship

will require additional data. The number of authenticators is an important indicator of the health

of the UIDAI system as diverse authenticators imply the availability of diverse services to the

residents.

T e chnol o g y

Finger print

Can provide different fingers fordifferent systems; large variety of vendors with different

templates and algorithms

Face recognition

Changes in hairstyle,facialhair, texture, position, lightingreduce abilityof technology to match

without user intervention

Irisrecognition
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Current technology requires high degree of user cooperation - difficultto acquire image

without consent

Retina scan

Requires high degree of user cooperation; image cannot be captured without user consent

Voice scan

Voice is text dependent, the user has to speak the enrollment password to be verified

Hand geometry

Physiological biometric, but not capable of identification yet; requires proprietary device

Authentication User Agency


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Contact Centre

The Contact Centre provides a central point of contact to residents and other entities that will

partner with UIDAI during the enrolment and post enrolment stages. The Contact Centre will

provide services in multiple languages for residents, Registrars, enrolment agencies and

resident service agencies. The service provider for Contact Centre will setup, operate and

maintain the Contact Centre including the agents. The service provider for Contact Centre will

be expected to:

Scale operations at the required pace to match volumes of interactions

Provide analytics support to UIDAI Assist in driving performance improvements

Take end to end responsibility of driving resolution of queries and services

Analyze the various interactions with the stakeholders, identify and develop process models


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Contact Centre Details

The UIDAI has set up a Contact Centre.

The users of this system are expected to be residents, registrars and enrolment agencies.Any resident seeking enrolment is given a printed acknowledgement form with an Enrolment

Number, that enables the resident to make queries about her/his enrolment status through any

communication channel of the contact centre.

Voice 1800-180-1947

Fax 080-2353 1947

Letters PO Box 1947, GPO Bangalore - 560001Email - This e-mail address is being protected from spambots. You need JavaScript enabled

to view it
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Annual Budget

This gives a broad picture of the annual budget outlays vis-a-vis the expenditure incurred.

Annual Budget 2010-11

Budget Estimated(BE) of UIDAI for the year 2010-2011

Head of

AccountRupees in thousands

01 Unique Identification Authority of India

01.01 Establishment 17,41,200

01.99 Information Technology 24,53,800

1.02 Assistance to Registrars for Enrolling Residents

01.02.50 Other Charges 1,30,00,000

01 Total-Unique Identification Authority of India 1,71,95,000


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UIDAI Vision on Micropayments

In the last twenty years, India has undergone a transformation of its economic and regulatory

structures. Policy reforms in this period have led to the increasing maturity of our markets, as

well as healthy regulation. The emphasis on de-licensing, entrepreneurship, the use of

technology and decentralisation of governance to the state and local level have in particular,

shifted India from a restrictive, limited access society to a more empowered, open access

economy, where people are able to access resources and services more easily and effectively.

But despite these efforts, access to finance has remained scarce in rural India, and for the poorest

residents in the country. Today, the proportion of rural residents who lack access to bank

accounts remains at 40%, and this rises to over three-fifths of the population in the east and

north-east parts of India.

This exclusion is debilitating. Economic opportunity is after all, intertwined with financial

access. Such financial access is especially valuable for the poorit offers a cushion to a group

whose incomes are often volatile and small. It gives them opportunities to build savings, insure

themselves against income shocks and make investments. Such savings and insurance protect the

poor against potentially ruinous eventsillness, loss of employment, droughts, and crop failures.

However due to the lack of access to financial services, many of the Indian poor face difficulties

in accumulating savings.


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To mitigate the lack of financial access in India, the regulator has focused on improving the

reach of financial services in new and innovative ways through no-frills accounts, the

liberalization of banking and ATM policies, and branchless banking with business

correspondents (BC's), which enables local intermediaries such as self-help groups and kirana

stores to provide banking services. Related efforts have also included the promotion of core-

banking solutions in Regional Rural Banks; and the incorporation of the National Payment

Corporation of India (NPCI) to provide a national infrastructure for payments and settlements in

the country.

Advancements in technology such as core banking, ATMs, and mobile connectivity have also

had enormous impact on banking. Mobile phones in particular present an enormous opportunity

in spreading financial services across India. These technologies have reduced the need for banks

to be physically close to their customers, and banks have been consequently able to experiment

with providing services through internet as well as mobile banking. These options, in addition to

ATMs, have made banking accessible and affordable for many urban non-poor residents across

the country.

Besides challenges of access and identity, a third limitation has been the cost of providing

banking services to the poor who transact in smaller amounts, commonly referred to as

micropayments. Banks consider such payments unattractive since transaction costs may be too

high to bear.

The Unique Identification number (Aadhaar), which identifies individuals uniquely on the basis

of their demographic information and biometrics will give individuals the means to clearly

establish their identity to public and private agencies across the country. It will also create an

opportunity to address the existing limitations in financial inclusion. The Aadhaar can help poor

residents easily establish their identity to banks. As a result, banks will be able to scale up their

branch-less banking deployments and reach out to a wider population at lower cost.

An efficient, cost effective payment solution is a dire necessity for promoting financial inclusion.

The Aadhaar and the accompanying authentication mechanism coupled with rudimentary


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technology application can provide the desired micropayment solution. This can bring low-cost

access to financial services to everyone, a short distance from their homes.

The key features of Aadhaar-enabled micropayments outlined are as follows:

UIDAI Know Your Residence (KYR) sufficient for Know Your Customer (KYC): Banks in

India are required to follow customer identification procedures while opening new accounts, to

reduce the risk of fraud and money laundering. The strong authentication that the UIDAI will

offer, combined with its KYR standards, can remove the need for such individual KYC by banks

for basic, no-frills accounts. It will thus vastly reduce the documentation the poor are required to

produce for a bank account, and significantly bring down KYC costs for banks.

Ubiquitous BC network and BC choice: The UIDAI's clear authentication and verification

processes will allow banks to network with village-based BC's such as self-help groups and

kirana stores. Customers will be able to withdraw money and make deposits at the local BC.

Multiple BC's at the local level will also give customers a choice of BC's. This will make

customers, particularly in villages, less vulnerable to local power structures, and lower the risk of

being exploited by BC's.

A high-volume, low-cost revenue approach: The UIDAI will mitigate the high customer

acquisition costs, high transaction costs and fixed IT costs that we now face in bringing bank

accounts to the poor.

Electronic transactions: The UIDAI's authentication processes will allow banks to verify poor

residents both in person and remotely. Rural residents will be able to transact electronically with

each other as well as with individuals and firms outside the village. This will reduce their

dependence on cash, and lower costs for transactions. Once a general purpose Aadhaar-enabled

micropayments system is in place, a variety of other financial instruments such as micro-credit,

micro-insurance, micro-pensions, and micro-mutual funds can be implemented on top of this

payments system.


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Documents

Unique Identification Number - Copy