Why are Government schemes asking for Aadhaar card is mandatory?

Why are Indian Government schemes asking for Aadhaar card is mandatory?

AAdhaar card mandatory is helps schemes to clean out duplicates and fakes, to provide accurate data and enable implementation of direct benefit programmes. Use of Aadhaar card program  reduces the costs of identifying persons and provides Increased transparency to the government in implementation of its schemes.

In what basis the Aadhaar card based DBT help me as a beneficiary?

Aadhaar card linking in your scheme database ensures that nobody else can claim your share of the benefits by impersonating you as a person. And Also, in case of cash transfers, the money reaches directly to your Aadhaar card linked bank account, and you do not have to pursue different people to get the funds. though you can decide the bank account in which you would like your benefits/money to be transferred.. But all benefits go to your latest Aadhaar card linked bank account, so all the subsidies are transferred in single bank account.

       

What all can I do using a Bank mitra, who visits my village?

Bank Mitra carry a handheld device, which can allow you multiple type of banking transactions on your Aadhaar linked Bank account. Transactions possible are Balance, Enquiry, Cash Deposit, Cash Withdrawal, Paying Bills, Remitting funds to other Aadhaar holder. Bank mitra also helps in opening of Aadhaar linked bank account.

       

How would I know that DBT funds have come to my bank account?

We recommend that you update your mobile number in bank. The Bank will send out SMS alerts when you get DBT in account or you transact on your account. Alternatively, you can also check your account balance using ATM, microATM/ Bank Mitra, internet banking or calling the bank for details of your transactions.

why should I need Aadhaar to get my DBT?

In indian government Most of the schemes are seeking Aadhaar number to identify the beneficiaries to remove fakes and duplicates from their database. That is the reason it is strongly recommended that you give them Aadhaar to assist them. It also helps you in availing benefits offered by various government schemes If you do not have Aadhaar, you can always present your Enrolment ID No. (EID), or submit the request with service delivery database owner to get Enroled for Aadhaar with the stated ID documents. In this reason will allow you to continue getting the benefits, subsidy or services without any restrictions.

   

Frequently asked Questions about Aadhaar card Enrollment

Frequently asked Questions ?

 A.Is it necessary to link bank account with Aadhaar?

As per gazette notification of Ministry of Finance, dated 1st June 2017, Individuals are required to provide Aadhaar number for linking all their bank accounts before 31st Dec 2017.

For residents not having Aadhaar it is suggested that they get themselves Enroled to get an Aadhaar.

 B. In case, Resident is an NRI/OCI card holder and having bank account in India but Resident doesn’t have Aadhaar. What will happen to his/her Bank account?

For NRIs it is suggested that they disclose their non-resident status with proof to their bank.

For the status of account becoming in-operational only the relevant banks shall be able to give response.

  C. Is it necessary to submit Aadhaar in Bank while transaction amount is INR 50,000 or above?

As per gazette notification of Ministry of Finance, dated 1st June 2017, Aadhaar will be sought for all transactions for an amount INR 50,000 or above.

 D. How is Aadhaar different from any other identity issued by the government?

Aadhaar is essentially a paperless online anytime-anywhere identity assigned to a resident to cover his/her entire lifetime. The verification of his identity is done online with the help of authentication devices which connect to UIDAI’s Central Identity Repository and return only a ‘yes’ or ‘no’ response to the basic query-“Is the person who he/she claims to be?” based on the data available with UIDAI.

The Aadhaar authentication service is fully functional and in use in several service delivery schemes across the country. The Aadhaar Card or the e-Aadhaar (electronic copy of Aadhaar) are essentially given to residents to know their own Aadhaar, but are only the first step towards the actual use of the online id as explained in the preceding para.

E. Is it mandatory to enrol for Aadhaar to file tax returns or apply for PAN in India? If yes, then what is the process for NRIs?

Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form, for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017.

It is clarified that such mandatory quoting of Aadhaar or Enrolment ID shall apply only to a person who is eligible to obtain Aadhaar number.

As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident individual is entitled to obtain Aadhaar. Resident as per the said Act means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016.

Aadhaar card Features and benefits

Aadhaar is a unique number Meaning for Aadhaar is "foundation" in Indian languages, is the term for the unique identity number issued by the UIDAI. No resident can have a duplicate number since it is linked to their individual biometrics; thereby identifying fake and ghost identities which result in leakages today.Savings from eliminating duplicates and fakes through Aadhaar-based identification will further enable governments to expand benefits to other eligible residents.

Electronic Benefit Transfer :

The Unique Identification department enabled Bank Account network will offer a secure and low cost platform to directly remit benefits to residents without the heavy costs associated today with benefit distribution; the leakages in the current system will also be stemmed as a result.

Portability: Aadhaar  is a universal number, and agencies and services can contact the central Unique Identification database from anywhere in the country to confirm a beneficiary's identity.

Self service puts Residents in control:

While using the Aadhar  as an authentication mechanism, residents should be able to access up-to-date information about their entitlements, demand services and redress their grievances directly from their mobile phone, kiosks or other means. In the case of self-service on the resident's mobile, security is assured using two-factor authentication (i.e. by proving possession of the resident's registered Mobile Number and knowledge of the resident's Aadhaar PIN). These standards are compliant with the Reserve Bank of India's approved standards for Mobile Banking and Payments.

Aadhaar  -based authentication to confirm entitlement delivered to the beneficiary: 

The Unique Identification Authority of India  will offer online authentication services for agencies who wish to validate a resident's identity; this service will enable confirmation of the entitlement actually reaching the intended beneficiary. Improved services through increased transparency: Clear accountability and transparent monitoring would significantly improve access and quality of entitlements to beneficiaries and the agency alike.

aadhaar application status

aadhaar correction application form

Aadhaar card based e-kyc Sample process flow would be as follows in bank

1. Customer walks into CSP of a bank with his/her 12-digit Aadhaar number and explicit consent and requests to open a bank account with Aadhaar based e-KYC.

2. Bank representative manning the CSP enters the number into bank’s eKYC application software.

3. The customer inputs his/her biometrics via a UIDAI compliant biometric reader (e.g. fingerprints on a biometric reader).

4. The software application captures the Aadhaar number along with biometric data, encrypts this data and sends it to UIDAI’s Central Identities Data Repository (CIDR).

5. The Aadhaar KYC service authenticates customer data. If the Aadhar number does not match with the biometrics, UIDAI server responds with an error with various reason codes depending on type of error (asdefined by UIDAI).

6. If the Aadhaar number matches with the biometrics, UIDAI responds with digitally signed and encrypted demographic information [Name,year/date of birth, Gender, Address, Phone and email (if available)] and photograph. This information is captured by bank’s e-KYC application and processed as needed.

7. Bank’s servers auto populate the demographic data and photograph in relevant fields. It also records the full audit trail of e-KYC viz. source of information, digital signatures, reference number, original request generation number, machine ID for device used to generate the request, date and time stamp with full trail of message routing, UIDAI encryption date and time stamp, bank’s decryption date and time stamp,etc.

8. The photograph and demographics of the customer can be seen on the screen of computer at bank branches or on a hand held device of BCs for reference.

9. The customer can open bank account subject to satisfying other account opening requirements.

Aadhar card e-kyc acceptance of Reserve bank of india

Operational Procedure to be followed by banks for e-KYC exercise

The e-KYC service of the UIDAI is be leveraged by banks through a secured network.

Any bank willing to use the UIDAI e-KYC service is required to sign an agreement with the UIDAI. The process flow to be followed is as follows:

A. Sign KYC User Agency (KUA) agreement with UIDAI to enable the bank to

specifically access e-KYC service.

B. Banks to deploy hardware and software for deployment of e-KYC service across various delivery channels. These should be Standardisation Testing and Quality Certification (STQC) Institute, Department of Electronics & Information

Technology, Government of India certified biometric scanners at bank branches/ micro ATMs/ BC points as per UIDAI standards. 

C. Develop a software application to enable use of e-KYC across various Customer Service Points (CSP) (including bank branch, BCs etc.) as per UIDAI defined Application Programming Interface (API) protocols. For this purpose banks will have to develop their own software under the broad guidelines of UIDAI. Therefore, the software may differ from bank to bank.

D. Define a procedure for obtaining customer authorization to UIDAI for sharing eKYC data with the bank. This authorization can be in physical (by way of a written explicit consent authorising UIDAI to share his/her Aadhaar data with the bank/BC for the purpose of opening bank account) /electronic form as defined by UIDAI from time to time. 

The eKYC service offered by UIDAI will enable individuals to authorise service providers to receive electronic copy of their proof of identity and address. This is a first of its kind service, on any public platform. The service makes KYC instantaneous, totally secure and paperless while enhancing privacy of data. It brings business efficiency and opens doors to innovative service provision in a manner never experienced before on a comparable scale.

eKYC service can be deployed by different agencies to verify a resident's identity and address. Only DEMOGRAPHIC information (Name, Address, Date of Birth, Gender, Photograph & Mobile Number) that is collected during Aadhaar card enrolment will be shared, at the request of, and/or with the consent of the Aadhaar card holder.