Rajeev Deshpande,TNN | Oct 5, 2015, 02.59 AM IST
NEW DELHI: A bar on use of the Aadhaar platform can impede efforts to provide banking access to 60 crore rural Indians currently deprived of the facility due to lack of a nationally accepted unique identity and disrupt the success of UID-linked payment gateways in transacting a staggering Rs 192 billion through 565 million discreet transfers.
Aadhaar-linked services are not only vital for transparent and efficient online "anytime, anywhere" verification system, but can be part of a cradle-to-grave system that dramatically improves access of the poor to services like purchase of SIM cards, security verification for employment and loans, besides faster and reliable access to social schemes.
The UID platform relies on capture of minimalist data and its central depository is located in spatially distributed data centers within India secured physically and logistically by using security tools and monitored 24x7x365 to offer strong guarantees against theft or misuse by any official agency, criminal enterprises or rogue elements within the system.
The privacy concerns raised before the Supreme Court are also being addressed by the UID authority's refusal to share biometrics with anyone, including an enrolled member, laws overseeing Aadhaar users like banks, passport departments and Election Commission and dispersal of data across unlinked servers with no common management.
Aadhaar's utility as an instant know-your-customer service is reducing time spent on verification and generating savings for agencies ranging from LPG companies to banks that have to maintain paper records and details. The number of rural employment guarantee transactions has crossed 16 million and those relating to cooking gas have touched 527 million.
The UID is particularly relevant for poor migrants who find ration cards issued at their home addresses of little use in new locations. An Aadhaar ID removes this problem, allowing quick access to private and government services and consequently reduces the need for a local godfather for fake documentation, often at a cost. The use of the online system for purchasing SIM cards can potentially reduce a major security hazard - the use of documentation provided by one user for other illegal transactions.
The UID revolution has seen more than Rs 19,000 crore transacted through the Aadhaar payment bridge and its progress will eliminate proxy identity documents like driving licences, ration cards, certification by local authorities and other such means that are often not reliable. The Aadhaar system is geared to handle 100 million authentication requests a day and the model is easily scalable.
Studies have shown that with removal of ghost users and duplications, the Aadhaar system could generate an internal rate of return of 52% for the government. The applications also offer an opportunity for e-commerce and private insurance through an identification system that is in sync with the government's security requirements. An e-sign facility does away with the need for a digital signature certificate and an ink signature and supporting documents.
