UIDAI CEO confident about BHIM and Aadhaar Pay, says misuse not possible

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Ajay Bhushan Pandey, CEO of Unique Identification Authority of India has expressed complete confidence in the BHIM-Aadhaar Pay system, saying that it is more secure than any debit card or credit card network.

Talking to ET, Pandey also spoke about the benefits that merchants who accept payment through Aadhaar would get from the governments. On being asked about the total amount that the merchants would get, he said that even though the amount is being still estimated, the government has made the commitment and is working on it.

Also talking about the government’s aim behind launching BHIM-Aadhaar, he said that the app is for those unable to use other means of digital payment, either because of lack of mobile phone or being financially illiterate to handle all the information that these digital payment apps demand. They would be able to use their fingerprint and Aadhaar number for shopping at local kirana stores, medicine shops, hospitals, fertilizer shops and ration shops.
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Also read: Fair price shop owners are discouraging digital payments

By September 2017, there will be 20 lakh merchants on BHIM-Aadhaar Pay, and they won't have to pay any MDR (merchant discount rate). Rather, they will receive an incentive of 0.25% of the transaction value (limited to certain caps). Customers too will not be charged anything, and to top it all, this would be an extremely safe method of digital payments.
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The application that merchants will use will be developed by the bank, which would then be security tested by the NPCI (National Payments Council of India) and other appropriate security agencies. This would prevent misuse of data, and even if any misuse happens, the person will definitely be caught.

Also read: Paytm, Freecharge, BHIM, etc have serious privacy concerns. Here are the details
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