AADHAAR The magic number

What is AADHAR                                                                                                                                        

   Aadhaar is a 12-digit unique identification number issued by the Indian government to every individual resident of India. Aadhaar number is based on biometric attributes of fingerprints and iris imagesThe Unique Identification Authority of India (UDAI), which functions under the Planning Commission of India, is responsible for managing Aadhaar numbers and Aadhaar identification cards

Introduction of AADHAAR

The Aadhaar was initiated as an attempt towards having a single, unique identification document or number that would capture all the details, including demographic and biometric information, of every resident Indian individual. Currently there are a plethora of identity documents in India including passports, PANs, driving licenses and ration cards. The Aadhaar card   will not replace these identification documents but can be used as the sole identification proof when applying for other things. It will also serve as the basis for KYC norms used by banks, financial institutions, telecom companies and other businesses that maintain customer profiles. Aadhaar numbers will eventually serve as the basis for a database  with which disadvantaged Indian residents can access services that have been denied to them due to lack of identification documents.

A resident Indian can apply for the Aadhaar number and card by submitting the existing proof of identity (passport, PAN card, driving license, etc.) and proof of address (phone/ power bill, bank statements, etc.) and by undergoing biometric profiling (fingerprints and iris scan) at any Aadhaar center.

Iris image and Fingerprint

Usage and benefits of AADHAAR

Aadhaar program was launched in 2009 with a main objective to give universal identity to every resident Indian. In the initial stages of enrolment people faced lot of difficulties such as technical snags, incorrect data displayed etc. and also the importance of Aadhaar card was unclear. But many of the issues were resolved.

 Benefits of Aadhaar Card

·        Aadhaar based DBT (LPG Subsidy): The 12 digit individual identification number on Aadhar card is used to get LPG subsidy amount directly in the bank account. This DBTL scheme is named as PAHAL. To get this benefit you need to visit your LPG distributor and get Aadhar number linked to the LPG consumer number.

·        Jan Dhan Yojana: Pradhan Mantri Jan Dhan Yojana (PMJDY) accepts Aadhaar card/number as the only document sufficient to open the bank account. The benefits offered are RuPay card, free zero balance savings account, life and accident insurance and many others

·        Passport in 10 days: This benefit of Aadhaar card will relieve you the most! If you have an Aadhaar card, you can get passport in just 10 days. Under this format, police verification will be done at a later date. If you need a passport, Aadhaar number is compulsory.

·        Digital Locker: Government of India has launched digital locker (DigiLocker) system for everyone for storing all personal documents on the government’s server. And sign-up process for DigiLocker requires person to link his/her  Aadhaar card number.

·        Voter Card Linking:  Aadhaar card UIDAI number would be linked to the voter ID’s. 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. This action is taken to eliminate bogus voters.

·        Monthly Pension: All the pensioners from select states will now have to register their Aadhaar card number to their respective department in order to receive monthly pension.

·        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.

·       SEBI: It is now accepted as a proof of address by Securities and Exchange board of India for investing in stock market. Till now, it was used by SEBI as identity proof.

Considering the increasing acceptance of Aadhaar card it is must for everyone to get it issued. It is believed that the card will further be given more importance as more and more government schemes are being launched requiring it as a mandatory document.

Why AADHAAR is popular

Poverty has many causes, and no simple cure. But one massive problem in India is that few poor people can prove who they are. They have no passport, no driving license, no proof of address. They live in villages where multitudes share the same name. Their lack of an identity excludes them from the modern economy. They cannot open bank accounts, and no one would be so foolish as to lend them money.

According to Finance ministry, Aadhaar may become the only card in future, replacing all types of other identity cards like voter ID card, PAN card etc.

Soon, patients who provide Aadhaar card at AIIMS will have their registration charges waived, but without it they will have to pay Rs 100, which is ten times the current fee of Rs 10.

Post-demonetization, the importance of an Aadhar card has increased dramatically. 

How AADHAAR become a Villain

The push to go digital forces everyone to use accounts to make payments . Linking the Aadhaar to the PAN and to bank accounts enables the government to compare tax filings with bank accounts and payments.

The Aadhaar programme has often been questioned because UIDAI collects bio-metrics and data “that can be stolen” or “sold to other countries”, and the security of which cannot be guaranteed

:-“ The UIDAI has ensured security of data – both physically and at the application level – by applying leading technical and process practices. The UIDAI has also established two large-scale data centres to ensure complete security of data and applications, and it regularly conducts audits by reputed third party agencies to keep its systems and processes up to date.”

Biometric authentication is a platform, and service providers are expected to use their wisdom in using the platform. Bio metric authentication is not the only platform available from the UIDAI; it offers demographic and OTP authentication as well. The UIDAI’s focus to get mobile numbers updated indicated the direction it wants to take – to give service providers another reliable option for authentication. Service providers can even build their own OTP authentication for exception handling. There can be multiple factors of authentication to ensure that nobody gets left out, including electronic and traditional paper-based authentication. Of course a good system design would require service providers to do exception handling in tandem with fraud detection.

Why link Aadhaar with PAN

"The uniqueness of PAN is achieved by conducting a de-duplication check on all already existing allotted PAN against the data furnished by new applicant. Under the existing system of PAN, only demographic data is captured,".

You may have already linked your Aadhaar number with PAN or Permanent Account Number. If not, you must do it this month. The government has set an August 31, 2017 deadline for linking Aadhaar with PAN. The Income Tax Department has come forward to urge assessees to link their Aadhaar with PAN. It has said income tax returns (ITRs) will be processed after the linkage of Aadhaar with PAN. But are you aware why the government has time and again emphasised the need for Aadhaar-PAN linking in the recent months?

Aadhaar, a 12-digit identity number, is now to be linked mandatory with PAN - both already issued and applied for. The government has come out with an info graphic explaining the rationale behind the urgent requirement of linking PAN with Aadhaar.

Linking Aadhaar with PAN database "allows a robust way of de-duplication as Aadhaar number is based on bio-metric attributes of fingerprints and iris images".

The Aadhaar number is issued by the UIDAI or Unique Identification Authority of India. On the other side, PAN is a 10-digit alphanumeric number allotted by the income tax department to individuals and entities. The Income Tax Department has in the recent past stepped up its efforts to encourage assesses to link their PAN with Aadhaar.

Why AADHAAR is Important

Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) on behalf of the Government of India to individuals for the purpose of establishing the unique identity for every single person.