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In what is being regarded as a major milestone in <keyword id="6360789" type="ORGANIZATION" weightage="60" keywordseo="Modi-Government">Modi government</keyword>’s <keyword id="2412682" type="UNKNOWN" weightage="80" keywordseo="Digital-India-mission">Digital India mission</keyword>, bank accounts of 10 crore people have been linked with their <keyword id="144117" type="ORGANIZATION" weightage="80" keywordseo="AADHAAR">Aadhaar</keyword> card numbers. The move would allow these individuals to digitally receive government welfare subsidies and other payments in a hassle-free manner directly into their bank accounts. 
 
If the person moves to another part of India, they can access these subsidies as the facility is portable across any bank in the country. Till date, 333 banks are live on this platform. 
 
In order to link Aadhaar number to the bank account, one needs to provide a copy of their Aadhaar letter or their e-Aadhaar to the bank branch in which he/she holds the account. Once the account is seeded, it can be used by central government departments to transfer subsidies directly into this bank account. 
 
And just by dialling *99*99# on their mobile phones, residents can check status of the Aadhaar-Bank account linkage. To avail this facility, which is provided by National Payments Corporation of India (NPCI), you need to pay Rs 1.50 per enquiry. 
 
The Aadhaar identity platform is the largest biometric database in the world and serves users ranging from LPG consumers, MNREGA workers, PDS, remittance and scholarship beneficiaries, etc. – all using their Aadhaar number to avail benefits. 
 
Till December 9, 2014, nearly eight crore transactions have been carried out through the Aadhaar Payment Bridge for various welfare programs of the BJP government, which amounted to Rs 5,151.51crore. 
 
On Dec 12, 2014, issuance of Aadhaars crossed the Rs 72 crore-mark across the country. 
 The <keyword id="86474" type="ORGANIZATION" weightage="60" keywordseo="Unique-Identification-Authority-of-India">Unique Identification Authority of India</keyword> (<keyword id="6355252" type="CITY" weightage="60" keywordseo="UIDAI">UIDAI</keyword>), which has received national and international acclaim for the Aadhaar project, has also been declared as the best agency for “security in e-governance,” as per a press release available on Press Information Bureau. 
(Image: The Economic Times)

A Step Toward Digital India: 10 Crore Aadhaars Linked To Bank Accounts

The last date to link PAN CARD with Aadhaar is 31st December 2019. However, to the masses, it is still unclear as to what the consquences of non-compliance would be. The central board of direct taxes (CBDT) in its notification dated 28th September 2019 extended the deadline for the 7th time to the end of the year. It is mandatory to link your <keyword id="8156425" type="UNKNOWN" weightage="20" keywordseo="Aadhaar-Card-with-PAN">Aadhaar card with PAN</keyword> if you have to process the Income Tax Return. Any bank transaction above Rs. 50,000 will need you to link your Aadhaar and PAN. Linking Aadhaar card with PAN card is a simple process similar to linking PAN card with Aadhaar card. Why must you link your Aadhaar card with PAN? The Income Tax department had earlier announced that all the PAN cards that have not been linked to Aadhaar card will be deactivated after 30 September 2019. Linking Aadhaar with Pan has been mandated for all having a PAN card. If multiple PAN cards are issued in the same name, this problem can be tackled by linking Aadhaar with PAN. If your Aadhaar is not linked with PAN, your IT returns will never be processed by the Income Tax Department. When you link your Aadhaar card with PAN, you will get a summary of all the taxes levied on you for your future reference. Steps to link your Aadhaar card and PAN card online through e-filing website Step:1 Visit the Income Tax e-filing website <a href="https://www.incometaxindiaefiling.gov.in/home">https://www.incometaxindiaefiling.gov.in/home</a> Step 2: Input your PAN and Aadhaar number sin the respective columns you will see in the form displayed. Step 3: Enter your full name as it is found on your Aadhaar card Step 4: If your Aadhaar card mentions only your birth year, then tick the square Step 5: Input the captcha code you will find on the image for verifying. Step 6: Click on ‘Link Aadhaar’ option You will see a pop up message that will tell you that your Aadhaar card has been successfully linked to your PAN. Steps to link Aadhaar with Pan by sending SMS For linking your Aadhaar with PAN, follow the simple steps given here. Take your mobile phone that has the SIM with the registered mobile number Type in the message UIDPAN&lt;12 Digit Aadhaar&gt; &lt;10 Digit PAN&gt; Send this message to 567678 or 56161 This process will see to that your Aadhaar is linked with PAN. Read this if you cannot link your Aadhaar card with PAN To link your Aadhaar and PAN, it is necessary that the name on your Aadhaar card and PAN card must match with each other. If there is a mismatch of the spelling, you will not be able to link your Aadhaar with PAN. In case of spelling mismatch, you will have to PAN cards have to be mandatorily linked with Aadhaar before the deadline ends otherwise they will be deactivated by the Income Tax Department. The name of the applicant should be the same on both PAN card and the Aadhaar card. In case there is some spelling mismatch, your will be unable to link Aadhaar with PAN. You will have to get your name corrected and after correction, you can easily link your PAN with Aadhaar. Here are the steps to make corrections in your PAN card. Visit the official e-filing website of NSDL at <a href="https://goo.gl/zvt8eV">https://goo.gl/zvt8eV</a> From the drop down menu, choose the option ‘Changes or Correction in existing PAN data/Reprint of PAN Card (No changes in Existing PAN Data)’ Select the category of individual and then enter your details, make the payment and submit the form online. You will get your updated Aadhaar delivered at your address. When you receive your PAN, you can link your Aadhaar with your PAN.

Explained: How to link PAN CARD with Aadhaar

New Delhi, Feb 27 () India Post Payments Bank (IPPB) has garnered over two crore customers in less than two years of being operational. According to a statement, IPPB had reached the landmark of one crore customers in August last year - its first year of operations. "The next 1 crore customers have been acquired and on-boarded in just five months. On an average, IPPB has been opening or maintaining a run rate of 33 lakh accounts per quarter," a statement said. The success of IPPB's business model underlines the government's intent in creating an interoperable banking infrastructure for the public good contributing toward changing the financial inclusion landscape in India, Communications Minister Ravi Shankar Prasad was quoted as saying in the statement. "Since its launch, IPPB has enabled more than 1.36 lakh post offices and 1.9 lakh dakiyas (postmen) to provide a complete suite of banking services at the doorstep of the customer providing access to any Aadhaar linked bank account, leading to an increase in rural banking infrastructure by almost 2.5 times," he added. With the launch of Aadhaar Enabled Payment System (AePS) Services in September 2019, IPPB has now become the single largest platform in the country for providing interoperable banking services to the customers of any bank, the statement said. With AePS services, any person with a bank account linked to Aadhaar can perform basic banking services such as cash withdrawals and balance enquiry irrespective of the bank they hold their account with. To avail these services, a customer with an Aadhaar-linked account can simply authenticate his or her identity with fingerprint scan and Aadhaar authentication to complete a transaction. The statement noted that IPPB has implemented one of the largest-ever digital financial literacy programme by investing over one crore man-hours in training and certifying more than 250,000 postal assistants, postmen and GDS as banking service providers. The bank has also digitised all the post office counters through a simple QR Code to accept electronic payments and also enabled direct payments into various post office saving schemes and purchase of postal products, it added. BEN SR SHWSHW

India Post Payments Bank crosses 2-cr customer mark

New Delhi, Feb 3 () As the date for linking PAN with Aadhaar has been extended by a year, the government has linked over 30 crore such numbers with the unique identification code, Minister of State for Finance Anurag Singh Thakur said in Parliament on Monday.
 The total permanent account numbers (PANs) which are linked with Aadhaar number as on January 27, 2020, is 30,75,02,824, Thakur informed the Lok Sabha.
 When asked if the government has extended the deadline period for Aadhaar-PAN linking, the minister responded in an affirmative "Yes sir".
 He said the due date for linking of PAN with Aadhaar has been further extended from December 31, 2019, to March 31, 2020.
 "As on January 27, 2020, a total of 17,58,03,617 PANs are not linked with Aadhaar. The extension of due date for linking of PAN with Aadhaar will benefit these PAN card holders as they get extra time to link their PANs with Aadhaar," Thakur said in Parliament.
 Also, to ensure that the sensitive data is not leaked by handling organisations, guidelines laid down by Unique Identification Authority of India (UIDAI) in this regard are being followed, he said.
 Appropriate measures have also been taken under provisions of Income-Tax Act, Information Technology Act and other applicable laws that the confidentially of data is maintained.
 On being asked if the government also proposes to link all property-related transactions with Aadhaar to curb benami property and bring transparency, he said the due date for linking of PAN with Aadhaar is March 31, 2020.
 "This measure will help to curb benami property and bring in transparency," Thakur said.
 He said, under the Income Tax (I-T) Act, a person is required to quote PAN in respect of any sale or purchase of immovable property for an amount exceeding Rs 10 lakh or valued by stamp valuation authority.
 In a separate query on PAN and bank account linking, the Finance Ministry informed the house that approximately 85 per cent of the current and savings accounts (CASA) are Aadhaar seeded as on January 24, 2020.
 Besides, as per data provided by the National Payments Corporation of India (NCPI), 59.15 crore RuPay cards have been issued by banks as on December 31, 2019. KPM ANS
ANS

Over 30 cr PANs linked with Aadhaar so far: Thakur

Kolkata, Feb 27 () Airtel Payments Bank said onThursday that it has launched the Aadhaar enabled paymentsystem (AePS) which will help people to do transactions atover 2,50,000 of its banking points across India.The system will enable customers, having Aadhaar-linked accounts of any bank, to do transactions at thedesignated points of the Airtel Payments Bank, the companysaid in a statement.It allows customers to carry out transactions by usingtheir Aadhaar number or virtual ID to access their bankaccounts.The AePS is a bank-led model which allows onlineinteroperable financial transactions at a point of sale (PoS)through business correspondent of any bank using the Aadhaarauthentication. The AePS allows six types of transactions,including deposit and withdrawal."The AePS platform offers ease of secured bankingto everyone by using only their Aadhaar. The AePS roll-out isone more step by Airtel Payments Bank to contribute towardsthe government's vision of financial inclusion," AirtelPayments Bank COO Ganesh Ananthanarayanan said. BSMSOM SOM

Airtel Payments Bank rolls out Aadhaar enabled payment system

In an aim to move towards cash less society, the government is coming up with an app that would do away with plastic cards and the point of sale machines. Scheduled to be launched tomorrow, this would eliminate the fees charged by card companies, which would eventually make merchants agree to switch completely to digital mode. 
 Merchants need to download the <keyword id="144117" type="ORGANIZATION" weightage="20" keywordseo="AADHAAR">Aadhaar</keyword> cashless merchant app on their smartphones connected to a biometric reader, which is currently available for Rs 2,000. The customer will then feed his or her Aadhar number into the app, select the bank through which the transaction will take place, and the biometric scan will work as a password for the transaction to be authenticated. "This app can be used by a person to make payments without any phone,'' Unique <keyword id="145005" type="ORGANIZATION" weightage="20" keywordseo="Identification-Authority-of-India">Identification Authority of India</keyword> (UIDAI) CEO <keyword id="1029687" type="PERSON" weightage="20" keywordseo="Ajay-Bhushan-Pandey">Ajay Bhushan Pandey</keyword> told ET. "Almost 40 crore Aadhaar numbers already stand linked to bank accounts - that is half the adults in India. The aim is to link all Aadhaar numbers with bank accounts by March, 2017." 
 "The settlement is done through the Aadhaar bridge, which means it connects a much wider set of people," <keyword id="6596800" type="PERSON" weightage="20" keywordseo="Rajiv-Lall">Rajiv Lall</keyword> MD &amp; CEO at <keyword id="62152" type="COMPANY" weightage="20" keywordseo="IDFC-Bank">IDFC Bank</keyword> told <keyword id="77091" type="COMPANY" weightage="20" keywordseo="The-Economic-Times">The Economic Times</keyword>."Anybody who has Aadhaar seeding done can make payments to merchants with this app. It wouldn't matter if the person does not have a credit or debit card, or even a mobile phone.'' The acceptance of point of sale terminals in the country has been slow with only 15 lakh terminals deployed by various banks. 
 <keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> alone has deployed over 3 lakh terminals followed by <keyword id="6357149" type="CITY" weightage="20" keywordseo="HDFC-bank">HDFC Bank</keyword> and ICICI Bank.

Cashless made easy: Aadhar app for merchants to be launched tomorrow

Amid the privacy and protection concerns voiced by various groups, the top team of <keyword id="86474" type="ORGANIZATION" weightage="20" keywordseo="Unique-Identification-Authority-of-India">Unique Identification Authority of India</keyword> (UIDAI) is exploring the possibility of introducing dummy numbers that would add an extra layer of <keyword id="6355300" type="CITY" weightage="20" keywordseo="security">security</keyword> to every <keyword id="144117" type="PERSON" weightage="100" keywordseo="AADHAAR">Aadhaar</keyword> cardholder. Such a framework would require an individual to share dummy or pseudo numbers — and not the real Aadhaar number — to government agencies, private utilities, banks and while withdrawing money from ATMs or moving funds from one bank account to another under the Aadhaar-enabled payment system. Besides the cardholder, the original Aadhaar number would be known only to UIDAI. No details yet The creation of dummy numbers and the frequency at which it can be generated and used would depend on the design architecture of the system. UIDAI, a statutory authority, is responsible for Aadhaar enrolment and authentication, issuance of Aadhaar numbers as well as ensuring the security of identity information and authentication records of individuals. Its measures on data protection and development of new standards on technologies like Aadhaar-Pay are ongoing. The organization, however, currently finds itself in a situation where the provisions of the very law (Aadhaar Act 2016) under which it was established has been challenged in the country’s highest court of law. Toeing the government directive, banks, utilities and credit card issuers are repeatedly asking customers to link their Aadhaar details to respective accounts by 31 December 2017, failing which services would be discontinued. Critics of Aadhaar are resisting such coercion to link Aadhaar with multiple service providers. They are hoping that some of these rules may change after the <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> ruling. The apex court hearing on the Aadhaar case is scheduled to begin on November 28.

To ensure security, Aadhaar may add security layer with dummy numbers

<ul><li>The Economic Survey 2018-19 highlights how technology has helped the Indian government plug leaks in the country's '<keyword id="7286241" type="UNKNOWN" weightage="20" keywordseo="food-for-work">food for work</keyword>' programme -- the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).</li><li>It attributes the programs success to the JAM trinity of Jan Dhan, <keyword id="144117" type="ORGANIZATION" weightage="20" keywordseo="AADHAAR">Aadhaar</keyword>, and mobile payments.</li><li>The National Electronic Fund Management System (NeFMS) also also helped the government keep a more accurate account of which workers are on the payroll and if they're actually showing up for work.</li></ul>The origins of ‘food for work’ programs trace back to Kautilya’s Arthashastra — a Indian documents on statecraft, economic policy and military strategy. John Keynes, who popularised the theory, was still a century behind Nawab Asaf-ud-Daula who already had a ‘food for work’ program working in Lucknow when famine struck in 1784. In today’s day and age, India’s Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is using technology to streamline the national ‘food for work’ scheme to bring financial and economic inclusion. The JAM trinity — Jan Dhan, Aadhaar, and mobile payments — has eased the validation of beneficiaries and the process for releasing funds, according to Economic Survey 2018-19. Wages directly to the people Since it’s induction in 2005, the programme was riddled with issues. But, applying Direct Benefit Transfer (DBT) and Aadhaar-linked Payments (ALP), the Indian government has been striving to reduce delays in the payment of wages, curb corruption and political interference, and plug up any leakages in the system. As a workforce programme, MGNREGA’s mandate is to alleviate distress and ensure payments happen in a timely manner. Before DBT, wages were transferred into panchayat bank accounts and most of the workers had to collect their wages from the gram panchayat office. And, in order for DBT to work — the workers needed bank accounts. That’s when the Pradhan Mantri Jan Dhan Yojana (PMJDY) was implemented to bring about universal access to banking facilities. The Economic Survey 2018-19 highlights that before the implementation of ALP and DBT, there used to be an average lag of 90 days before wage payments for recieved. After their implementation, that lag has been cut down one-third from 35% to less than 10%. Culling out the ‘ghosts’ in the system Bringing in <keyword id="7829443" type="UNKNOWN" weightage="20" keywordseo="aadhaar-linked-payments">Aadhaar linked payments</keyword> ensured that the government would not be funding any ‘ghost’ beneficiaries. The National Electronic Fund Management System (NeFMS), implemented in 2016 and currently functional in 24 states, bolsters that effort by providing a real time database of wages being credited into bank or post office accounts by the central government. NREGAsoft, a local language workflow based e-governance system, looks at registration and muster rolls, a form of attendance register signed by workers to check false reporting of numbers. The service isn’t available to the public but does make it easier for the government to keep track of who is employed under the scheme and whether they are actually showing up for work. The government’s also held accountable of its actions with the use of mobile apps like Gram Samvaad Mobile App and JanMnRega were rural workers have direct access to information and can give their own feedback on how the system is working. The supply demand gap Since the government now access to data, the Economic Survey 2018-19 asserts that it will be able to implement MGNREGA more effectively by pushing government officials to provide more jobs in distressed areas. This should help bridge the demand supply gap between jobs available and the enlisted worker by using data provide jobs where there is more demand for them and vice versa. The survey also highlights how the vulnerable sections of the society — women, scheduled class, and scheduled tribes — have increased their participation in the program during times of distress. Going forward, the government wants to expand the number of jobs available to workers under the scheme, upskill the workers it has enlisted, expand the use of JAM, and use digital infrastructure to expand MGNERA beyond wages to also offer micro-insurance, micro-pensions and micro-credit to the underserved sections of society.

Technology plugged the leaks in India’s ₹60,000 crore rural employment guarantee scheme

The government has relaxed provisions of <keyword id="19948097" type="General" weightage="20" keywordseo="tds" source="keywords">TDS</keyword>/<keyword id="19950203" type="General" weightage="20" keywordseo="tcs" source="keywords">TCS</keyword> in the event of the death of the deductee/collectee before the linkage of PAN and <keyword id="19898107" type="General" weightage="20" keywordseo="aadhaar" source="keywords">Aadhaar</keyword> card. TDS is Tax Deducted at Source and TCS is Tax Collected at Source in India. The Central Board of Direct Taxes (CBDT), has issued a circular dated August 5, in view of genuine difficulties being faced by taxpayers. Through the circular, the government said it has relaxed the provisions of TDS/TCS, as per the Income-tax Act, in the event of death of deductee/collectee before linking of PAN and Aadhaar. In order to redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before May 31, 2024 and before the option to link PAN and Aadhaar could have been exercised, the circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under the relevant section of <keyword id="19936187" type="General" weightage="20" keywordseo="income-tax-act" source="keywords">income tax act</keyword>, pertaining to the transactions entered into up to March 31, 2024. On April 23, 2024, CBDT extended the date for linking of PAN and Aadhaar May for the taxpayers (for the transactions entered into up to March 2024) to avoid higher TDS/ TCS, as per the income tax act. Under the provisions of the Income-tax Act, 1961, every person who has been allotted a PAN as on July 1, 2017 and is eligible to obtain <keyword id="20030312" type="General" weightage="20" keywordseo="Aadhaar-Number" source="keywords">Aadhaar Number</keyword>, is required to intimate his Aadhaar to the prescribed authority, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the income tax act. As per government, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows: 1. No refund shall be made against such PANs 2. Interest shall not be payable on such refund for the period during which PAN remains inoperative 3. TDS and TCS shall be deducted /collected at higher rate, as provided in the income tax act.

Provisions of TDS/TCS, in case of death of deductee or collectee relaxed by govt

<a href="http://www.businessinsider.in/DoYou-Need-Aadhaar-Card-Govt-Says-Yes-Supreme-Court-Says-No/articleshow/22981267.cms">Controversy</a> is still raging over the mandatory use of <keyword id="144117" type="ORGANIZATION" weightage="100" keywordseo="AADHAAR">Aadhaar</keyword>, but an expert <keyword id="2006823" type="UNKNOWN" weightage="100" keywordseo="Committee-on-financial-inclusion">committee on financial inclusion</keyword> has already recommended that the <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> should leverage the <keyword id="2006820" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-network">Aadhaar network</keyword> to ensure that every Indian has a <keyword id="2006817" type="UNKNOWN" weightage="100" keywordseo="Free-bank-account">free bank account</keyword> by January 2016. The recommendation has come from the Committee on Comprehensive <keyword id="2006821" type="UNKNOWN" weightage="100" keywordseo="Financial-Services-for-Small-Business">Financial Services for Small Business</keyword> and Low-Income Households, which is headed by <keyword id="311391" type="PERSON" weightage="100" keywordseo="Nachiket-Mor">Nachiket Mor</keyword>, an <keyword id="2006825" type="UNKNOWN" weightage="100" keywordseo="RBI-board-member">RBI board member</keyword> and former <keyword id="6653" type="CITY" weightage="100" keywordseo="ICICI-bank">ICICI Bank</keyword> executive. 
 <keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword> set up the committee last September and it has now sought comments from the public on the <keyword id="1180163" type="UNKNOWN" weightage="100" keywordseo="draft-recommendations">draft recommendations</keyword> on or before January 24, 2014. Other key members of the panel include former <keyword id="44473" type="CITY" weightage="80" keywordseo="Citigroup">Citigroup</keyword> CEO <keyword id="25396" type="PERSON" weightage="100" keywordseo="Vikram-Pandit">Vikram Pandit</keyword> and <keyword id="2006826" type="UNKNOWN" weightage="100" keywordseo="Axis-Bank-CMD">Axis Bank CMD</keyword> <keyword id="6356453" type="PERSON" weightage="100" keywordseo="Shikha-Sharma">Shikha Sharma</keyword>. 
 According to the report, every Indian resident over 18 years of age should be automatically issued a “universal <keyword id="2006829" type="UNKNOWN" weightage="100" keywordseo="Electronic-bank-account">electronic bank account</keyword> at the time of receiving his/her <keyword id="485058" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-number">Aadhaar number</keyword>.” One can choose his/her <keyword id="2006832" type="COMPANY" weightage="100" keywordseo="Preferred-bank">preferred bank</keyword> from the empanelled ones and need not pay any fee for opening an account. However, the bank can levy <keyword id="162862" type="UNKNOWN" weightage="100" keywordseo="transaction-charges">transaction charges</keyword>, the committee says. It also recommends setting up of a ‘unified’ redressal agency under the <keyword id="47209" type="ORGANIZATION" weightage="100" keywordseo="Finance-Ministry">finance ministry</keyword> to deal with <keyword id="786199" type="UNKNOWN" weightage="100" keywordseo="customer-complaints">customer complaints</keyword>. 
 About 90% of small businesses have no links to a <keyword id="154831" type="ORGANIZATION" weightage="100" keywordseo="financial-institution">financial institution</keyword> and 60% of Indians do not have bank accounts, the report states. “Aadhaar is the key piece of infrastructure to enable a customer to be identified and authenticated so that repudiation and fraud risks are minimised and therefore, should become the universal basis for authentication,” it adds. 
 The panel has also suggested that a special type of <keyword id="6368751" type="PERSON" weightage="100" keywordseo="Banks">banks</keyword> should be introduced to provide payment services and deposit products to small businesses and low-income households. Such banks could be categorised as <keyword id="2006841" type="UNKNOWN" weightage="100" keywordseo="Payments-banks">payments banks</keyword> and “they will be restricted to holding a <keyword id="2006842" type="UNKNOWN" weightage="100" keywordseo="Maximum-balance">maximum balance</keyword> of Rs 50,000 per customer,” the report says. Even <keyword id="2006844" type="UNKNOWN" weightage="100" keywordseo="Existing-lenders">existing lenders</keyword> can set up these payments banks as <keyword id="4128451" type="UNKNOWN" weightage="100" keywordseo="subsidiaries">subsidiaries</keyword>. The report also recommends setting up another category of wholesale banks that will provide funds to other banks and financial institutions that directly lend to low-income households. 
 On the face of it, the recommendations to introduce a multi-layered <keyword id="6354778" type="ORGANIZATION" weightage="100" keywordseo="Banking">banking</keyword> system make sound sense as these ‘proposed’ entities will be serving the <keyword id="2006855" type="UNKNOWN" weightage="100" keywordseo="Financially-weak">financially weak</keyword> segment of the country and overall, the inclusion plan for 2013-2016 looks good. 
 
Except for the Aadhaar part. 
 But before we go ahead, let us have a look at Aadhaar and what all it offers. Launched by the <keyword id="86474" type="ORGANIZATION" weightage="100" keywordseo="Unique-Identification-Authority-of-India">Unique Identification Authority of India</keyword> (<keyword id="6355252" type="CITY" weightage="100" keywordseo="UIDAI">UIDAI</keyword>), the <keyword id="804646" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-scheme">Aadhaar scheme</keyword> was initially introduced to ‘promote inclusion and benefits of the <keyword id="1389586" type="UNKNOWN" weightage="100" keywordseo="marginalised-sections">marginalised sections</keyword> of the society that has no <keyword id="2006861" type="UNKNOWN" weightage="100" keywordseo="Formal-identity-proof">formal identity proof</keyword>.’ Even today, Aadhaar-enabled services are essentially linked to various <keyword id="580043" type="UNKNOWN" weightage="100" keywordseo="government-welfare-schemes">government welfare schemes</keyword> – so that its beneficiaries can access the same in a hassle-free manner. 
 However, the ‘<keyword id="2006816" type="UNKNOWN" weightage="100" keywordseo="Banking-for-all">banking for all</keyword>’ initiative in its ‘suggested’ format cannot be a marginalised movement, aimed to serve only the under-banked/unbanked regions or the weaker section or those below the <keyword id="141042" type="ORGANIZATION" weightage="100" keywordseo="poverty-line">poverty line</keyword>. It has to have a <keyword id="2006866" type="UNKNOWN" weightage="100" keywordseo="Unified-structure">unified structure</keyword> across the country – involving every Indian citizen. In other words, it will be much like the ‘<keyword id="49358" type="UNKNOWN" weightage="100" keywordseo="voter-card">voter card</keyword>’ mechanism we have in place right now. At the age of 18, an Indian is entitled to get a voter card irrespective of the <keyword id="2006868" type="UNKNOWN" weightage="100" keywordseo="Financial-divides">financial divides</keyword>. Going forward, if the central bank intends to follow the same principle and wants to bring the entire population of the country under its <keyword id="2006870" type="UNKNOWN" weightage="100" keywordseo="Inclusion-umbrella">inclusion umbrella</keyword> (after all, one cannot leave one section of the citizens out of a <keyword id="2006871" type="UNKNOWN" weightage="100" keywordseo="Mass-initiative">mass initiative</keyword> just because they are financially more stable), opening an account at the stipulated age should become mandatory and that means a mandatory <keyword id="1953676" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-validation">Aadhaar validation</keyword>. 
 And that brings us back to the basic question – what is the legal status of Aadhaar in India? Is it just a <keyword id="107911" type="ORGANIZATION" weightage="100" keywordseo="Financial-inclusion">financial inclusion</keyword> tool for the economically weak or do the government agencies intend to turn it into an ‘all-inclusive’ tool required for every social and <keyword id="672932" type="ORGANIZATION" weightage="100" keywordseo="economic-activity">economic activity</keyword> – right from <keyword id="427269" type="UNKNOWN" weightage="100" keywordseo="Marriage-registration">marriage registration</keyword> to <keyword id="854003" type="UNKNOWN" weightage="100" keywordseo="land-registration">land registration</keyword>, from banking to <keyword id="6368952" type="ORGANIZATION" weightage="100" keywordseo="shopping">shopping</keyword> and more? 
 The RBI has already asked banks to ensure <keyword id="1953683" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-authentication">Aadhaar authentication</keyword> for <a href="http://www.businessinsider.in/Now-RBI-Wants-Aadhaar-Validation-For-Card-based-Transactions/articleshow/26473660.cms">card transactions</a> at merchant locations. “All new card present infrastructure has to be enabled for both <keyword id="1953693" type="UNKNOWN" weightage="100" keywordseo="EMV-chip-and-PIN">EMV chip and PIN</keyword> and Aadhaar (<keyword id="1953679" type="UNKNOWN" weightage="100" keywordseo="Biometric-validation">biometric validation</keyword>) acceptance,” the central bank stated in a notification on November 26 last year. 
 Although the <keyword id="6354977" type="ORGANIZATION" weightage="80" keywordseo="Supreme-Court">Supreme Court</keyword> has ruled that the <keyword id="6356006" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-card">Aadhaar Card</keyword> is not mandatory to get <keyword id="1739662" type="UNKNOWN" weightage="100" keywordseo="government-benefits">government benefits</keyword> and services, and the <keyword id="1878758" type="UNKNOWN" weightage="100" keywordseo="National-Identity-Authority-of-India-Bill">National Identity Authority of India Bill</keyword> is yet to get Parliamentary nod, Aadhaar seems to be enjoying a more hallowed status and getting its teeth deep into every key financial transaction one can think of. That might not be quite desirable at this stage as divulging <keyword id="441301" type="UNKNOWN" weightage="100" keywordseo="biometric-data">biometric data</keyword> (required for Aadhaar Card) is still considered voluntary and <keyword id="2006881" type="UNKNOWN" weightage="100" keywordseo="Secure-storage">secure storage</keyword> of the same cannot be guaranteed even now. 
 The rest of the recommendations by the committee dwell on the structure and requirements of the <keyword id="2006882" type="UNKNOWN" weightage="100" keywordseo="Proposed-banks">proposed banks</keyword>, <keyword id="6597293" type="UNKNOWN" weightage="100" keywordseo="priority-sector-lending">priority sector lending</keyword> and deposits, and classification of non-banking financial companies (NBFCs). 
 Interestingly, the payment banks will be required to meet the standard <keyword id="35038" type="ORGANIZATION" weightage="80" keywordseo="crr">CRR</keyword> terms and must also deposit the balance proceeds in approved <keyword id="838337" type="UNKNOWN" weightage="100" keywordseo="SLR-securities">SLR securities</keyword> with duration of no more than three months. As they won’t be permitted to assume any kind of <keyword id="854662" type="UNKNOWN" weightage="100" keywordseo="Credit-risk">credit risk</keyword>, which literally rules out any risk of default, the <keyword id="2006891" type="UNKNOWN" weightage="100" keywordseo="Minimum-entry-capital">minimum entry capital</keyword> for them will be Rs 50 crore instead of the Rs 500 crore required for full-service commercial banks in the country. Also, the wholesale banks cannot accept deposits bigger than Rs 5 crore from a single depositor. 
 The RBI had launched a three-year financial <keyword id="2006853" type="UNKNOWN" weightage="100" keywordseo="Inclusion-programme">inclusion programme</keyword> in April 2010, which prompted banks to open outlets in 200,000 villages. The current recommendations seek to deepen such access and experts even feel that the new banking licences, to be announced soon, can be categorised accordingly. But both the government and the RBI should ensure that the programme becomes ‘inclusive’ in the true sense of the term and validation issues should not throw a spanner in the works.

Aadhaar Gaining More
Teeth, To Play Key Role In ‘Banking For All’

<keyword id="6355252" type="CITY" weightage="100" keywordseo="UIDAI">UIDAI</keyword>, the Unique Identification Authority of India, has assured that its biometrics data are completely secure. The announcement was made after some rumours cropped up last week about a possible breach in the biometric security of the <a href="http://www.businessinsider.in/Aadhaar-beats-even-the-FBIsdata-base-fair-and-square-becoming-the-worlds-largest-biometric-database/articleshow/47068353.cms">Aadhaar database</a>. 
 
The authority has said the reported breach was a one-off incident, in which an employee working with a bank's business correspondent's company made an attempt to misuse his own biometrics. The breach was detected by UIDAI internal security system and appropriate action was taken. 
 A police complaint has been filed against Axis Bank, business correspondent Suvidhaa Infoserve and e-sign provider <keyword id="1662229" type="UNKNOWN" weightage="100" keywordseo="eMudhra">eMudhra</keyword> for attempted unauthorised authentication and impersonation by illegally storing <keyword id="144117" type="ORGANIZATION" weightage="100" keywordseo="AADHAAR">Aadhaar</keyword> biometric data, said a release by UIDAI. 
 
 "Any unauthorised capture of iris or fingerprints or storage or replay of biometrics or their misuse is a criminal offence under the <a href="http://www.businessinsider.in/Centre-to-link-Aadhaar-with-NPR-chalks-out-a-budget-of-Rs-951-crore/articleshow/47877985.cms">Aadhaar</a> Act," it said. 
 
Also read: <a href="http://www.businessinsider.in/verify-drivers-and-domestic-helps-using-Aadhar-Cards/articleshow/50818292.cms">Verify your drivers and domestic helps using Aadhar Cards before hiring</a> 
 
"UIDAI uses one of world's most advanced encryption technologies in transmission and storage of data. As a result, during the last seven years, there has been no report of breach or leak of residents' data out of UIDAI," the statement claimed. 
 
Also read: <a href="http://www.businessinsider.in/Aadhaar-encryption-protects-privacy-will-take-eons-to-crack/articleshow/49348547.cms">Not easy to crack Aadhaar encryption code! Would require the most powerful computer to do that</a> 
 <keyword id="4256821" type="UNKNOWN" weightage="100" keywordseo="security-of-aadhaar">Security of Aadhaar</keyword> card is all the way more important now that a biometric-enabled payment system called Aadhaar Pay is about to be launched. 
 
Also read: <a href="http://www.businessinsider.in/A-Step-Toward-Digital-India-10-Crore-Aadhaars-Linked-To-Bank-Accounts/articleshow/45523974.cms">A Step Toward Digital India: 10 Crore Aadhaars Linked To Bank Accounts</a> 
 
(Image Source: Wikimedia)

Database completely secure, UIDAI assures

<ul><li>K Subramanian's <keyword id="7828895" type="UNKNOWN" weightage="20" keywordseo="india-economic-survey-2019">India economic survey 2019</keyword> has a dedicated chapter on use of data by government.</li><li>The survey recommends that all data that is spread out across departments and private institutions be linked with Aadhaar at the centre.</li><li>'Efficient use' of data available with the government is the objective, the survey said.</li><li>Use of Aadhaar as a mother database to track a citizen's activities has been a contentious issue for the last few years.</li></ul> The latest economic survey recommendation on Aadhaar, India's unique biometric identity for citizens, may reignite the fierce debate around the programme. K Subramanian's India economic survey 2019 has recommended that all data that is spread out across departments and private institutions be linked with Aadhaar at the centre. "The prospect of empowering the government with such comprehensive, exhaustive information about every citizen may sound alarming at first. However, this is far from the truth. First, large quantities of data already exist in government records, and the objective is only to use this data in a more efficient way, the survey said. Use of Aadhaar as a mother database to track a citizen's activities has been a contentious issue in India for the last few years. As it stands today, while Aadhaar has become an inevitable proof demanded by providers of all kinds of services even though it is not mandatory as per a Supreme Court ruling. "When one adds an Aadhaar number to an existing database such as a database of bank accounts, it is only one more column that is added to the table. The linking is so to speak “one-way”. Banks can now use the tokenized Aadhaar Number (i.e., a proxy 64-digit number that is based on, but not equal to the individual’s 12-digit Aadhaar Number) to combine duplicate records and weed out benaami accounts. But, this does not mean that the UIDAI or government can now read the bank account information or other data related to the individual," the survey noted. Making a case to link all citizen's data, the survey cited the examples from the United Kingdom and the United States. "At last count, more than 600 apps were being powered specifically using the Transport For London open data feeds, used by 42% of Londoners," Subramanian's survey said and it added that it led to savings of £70m-£95m per year in time, reduced uncertainty and lower information costs. The question of consent The proposal envisioned here does not gather any new information; rather, it seeks to make available all data within the government for citizens, government, private and public institutions to utilize the data subject to user consent and appropriate privacy and fairness related constraints. 4.35 Second, people can always opt out of divulging data to the government, where possible. For example, one can choose not to participate in a survey or use government-run payments services. There are exceptions, of course, the survey said without elaborating on what they are. The concerns While the ideological debate on whether the government should have access to a citizen's private life through the digital infrastructure has enough takers on both sides, one thing that continues to be a concern to one and all is the how secure is the Aadhaar database itself. Time and again, the government has been pushed into the defensive by stories of data leaks which the government has had to deny but the biometric identity programme has never quite earned the citizen's trust fully. It is another matter that institutions, both private and public, have made the use of Aadhaar mandatory even to access basic services but the demand has been met more with annoyance than with pleasure. SEE ALSO: <a href="https://www.businessinsider.in/latest-aadhaar-data-leak-via-indane-gas-may-be-the-biggest-so-far-according-to-elliot-alderson/articleshow/68058787.cms" data-type="tilCustomLink" target="_blank">Latest Aadhaar leak may have hit 6.7 million Indians, alleges Elliot Alderson</a>

India's latest economic survey makes a case to use Aadhaar to create a master database for every citizen

<keyword id="144117" type="ORGANIZATION" weightage="100" keywordseo="AADHAAR">Aadhaar</keyword> is finally getting its teeth into key financial transactions, going by the central bank’s tough stand. The <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> has recently asked banks to ensure <keyword id="1953683" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-authentication">Aadhaar authentication</keyword> for card transactions at merchant locations. 
 “All new <keyword id="1953691" type="UNKNOWN" weightage="100" keywordseo="Card-present-infrastructure">card present infrastructure</keyword> has to be enabled for both <keyword id="1953693" type="UNKNOWN" weightage="100" keywordseo="EMV-chip-and-PIN">EMV chip and PIN</keyword> and Aadhaar (<keyword id="1953679" type="UNKNOWN" weightage="100" keywordseo="Biometric-validation">biometric validation</keyword>) acceptance,” the <keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword> stated in a notification on November 26. It also directed banks to issue chip-based cards by November 30 to tackle rising cases of <keyword id="38935" type="PERSON" weightage="100" keywordseo="Fraud">fraud</keyword>. The latest notification follows the recommendations of the Working Group headed by Gowri Mukherjee, global head of digital marketing at <keyword id="127691" type="CITY" weightage="40" keywordseo="Standard-Chartered-Bank">Standard Chartered Bank</keyword>. 
 A rise in fraud cases due to <keyword id="1953714" type="UNKNOWN" weightage="100" keywordseo="Stolen-card-data">stolen card data</keyword> had prompted the RBI to set up a panel in March 2011, which looked into securing card-based transactions through additional layers of authentification such as PINs and <keyword id="102890" type="UNKNOWN" weightage="100" keywordseo="biometrics">biometrics</keyword>. According to the RBI, the recommendations of the Working Group have been examined and the measures have been advised after taking into consideration the developments that took place in the card payment ecosystem as well as in the scalability and effectiveness of Aadhaar over a period of time. 
 <keyword id="1953695" type="UNKNOWN" weightage="100" keywordseo="Euro-pay-MasterCard-Visa">Euro pay MasterCard Visa</keyword> or EMV <keyword id="6428865" type="PERSON" weightage="100" keywordseo="chip">chip</keyword> and <keyword id="6376717" type="COMPANY" weightage="100" keywordseo="PIN">PIN</keyword> authentication involves card information being stored in a chip that is accessible through a PIN or <keyword id="1636984" type="UNKNOWN" weightage="100" keywordseo="Personal-identification-number">personal identification number</keyword>, which replaces a cardholder’s signature. This is in line with global best practices and is currently getting implemented. So is it really essential to come up with an additional security layer by linking the entire process with Aadhaar and its biometric validations? 
 Not for all cards, it seems. “In respect of cards, not specifically mandated by the RBI to adopt <keyword id="1953703" type="UNKNOWN" weightage="100" keywordseo="EMV-norms">EMV norms</keyword>, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV chip and Pin technology for securing the <keyword id="1953704" type="UNKNOWN" weightage="100" keywordseo="Card-present-payment-infrastructure">card present payment infrastructure</keyword>,” said RBI. 
 
Even then, the biometric validation will be mandatory for all new machines/replacements and that means getting infrastructure-ready where no such infrastructure exists. 
 Before we get into more details, let us have a look at Aadhaar’s current functionality and future scope. Launched by the <keyword id="86474" type="ORGANIZATION" weightage="100" keywordseo="Unique-Identification-Authority-of-India">Unique Identification Authority of India</keyword> (<keyword id="6355252" type="CITY" weightage="100" keywordseo="UIDAI">UIDAI</keyword>), Aadhaar cards are essentially identity proofs based on <keyword id="441301" type="UNKNOWN" weightage="100" keywordseo="biometric-data">biometric data</keyword>. These are currently used for opening bank accounts and further ensure that <keyword id="44734" type="ORGANIZATION" weightage="100" keywordseo="Indian-Government">Indian government</keyword>’s welfare payments are routed directly to beneficiaries. 
 But Aadhaar is bound to play a more crucial role and gain a nation-wide runway when the latest RBI directive comes into force. Since both provisions are made mandatory by the RBI, <keyword id="1953676" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-validation">Aadhaar validation</keyword> will have to be facilitated at all new <keyword id="443296" type="UNKNOWN" weightage="100" keywordseo="Point-of-Sale">point of sale</keyword> (<keyword id="88570" type="ORGANIZATION" weightage="100" keywordseo="POS">PoS</keyword>) terminals/ATMs. 
 Although most banks have started rolling out the EMV chip and PIN systems and are deploying new cards to customers, implementing Aadhaar validation will require more time and additional costs. That’s because banks will have to put in place the mechanism for <keyword id="1953708" type="UNKNOWN" weightage="100" keywordseo="Biometric-checks">biometric checks</keyword>, in tune with the system established by the UIDAI. 
 
“This new requirement is a challenge as we have very basic thumb print and reading devices. There is no service provider that manufactures such machines in bulk,” the payments head of a leading private sector bank told Economic Times. As a result, most <keyword id="61519" type="UNKNOWN" weightage="100" keywordseo="Private-banks">private banks</keyword> may stop installing <keyword id="459467" type="UNKNOWN" weightage="100" keywordseo="POS-terminals">PoS terminals</keyword> at merchant outlets, he said. 
 But the worst hit could be the <keyword id="6355548" type="ORGANIZATION" weightage="80" keywordseo="Public-Sector-Banks">public sector banks</keyword> such as the <keyword id="6354731" type="CITY" weightage="80" keywordseo="State-Bank-Of-India">State Bank of India</keyword> and <keyword id="6358007" type="CITY" weightage="80" keywordseo="Bank-of-Baroda">Bank of Baroda</keyword> who are planning to roll out a large number of PoS machines. They will have to start from scratch to enable biometric facilities. 
 In spite of the current <keyword id="1953709" type="UNKNOWN" weightage="100" keywordseo="Gap-in-infrastructure">gap in infrastructure</keyword>, no one can deny the benefits of including biometric data (finger print/retina scan) captured by the UIDAI. This can be effectively used for authentication to protect against both <keyword id="1953712" type="UNKNOWN" weightage="100" keywordseo="Domestic-counterfeit">domestic counterfeit</keyword> and lost &amp; stolen card fraud as the cardholder has to be physically present at the PoS terminal/ATM to authenticate the transaction. Even if the card is counterfeited, the fraudster will not be able to use the card as the biometric data of the customer will be required. 
 Currently, transactions using cards at PoS do not require additional authentication in majority of the cards. However, data stored in <keyword id="1953711" type="UNKNOWN" weightage="100" keywordseo="Magnetic-stripe">magnetic stripe</keyword> is vulnerable to <keyword id="6419130" type="UNKNOWN" weightage="100" keywordseo="skimming">skimming</keyword>. If more and more customers are to be encouraged to use PoS channels, it will surely require securing these transactions through biometric authentication and prevention of <keyword id="6722989" type="UNKNOWN" weightage="100" keywordseo="counterfeiting">counterfeiting</keyword> (skimming) by migrating to chip and PIN. That’s exactly what the RBI is doing although it may take some time to get into action. 
 
With input from Agencies 
Image: Indiatimes

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