uid

When I opposed Aadhaar in 2010 , I was called a BJP stooge. In 2016 I am still opposing Aadhaar for the same reasons and I am told I am a Congress die hard. No one wants to see why I oppose Aadhaar as it is too difficult. Plus Aadhaar is FREE so why not get one ? Ram Krishnaswamy

First they ignore you, then they laugh at you, then they fight you, then you win. -Mahatma Gandhi

In matters of conscience, the law of the majority has no place. Mahatma Gandhi

“The invasion of privacy is of no consequence because privacy is not a fundamental right and has no meaning under Article 21. The right to privacy is not a guaranteed under the constitution, because privacy is not a fundamental right.” Article 21 of the Indian constitution refers to the right to life and liberty -Attorney General Mukul Rohatgi

“There is merit in the complaints. You are unwittingly allowing snooping, harassment and commercial exploitation. The information about an individual obtained by the UIDAI while issuing an Aadhaar card shall not be used for any other purpose, save as above, except as may be directed by a court for the purpose of criminal investigation.” -A three judge bench headed by Justice J Chelameswar said in an interim order.

Legal scholar Usha Ramanathan describes UID as an inverse of sunshine laws like the Right to Information. While the RTI makes the state transparent to the citizen, the UID does the inverse: it makes the citizen transparent to the state, she says.

Good idea gone bad
I have written earlier that UID/Aadhaar was a poorly designed, unreliable and expensive solution to the really good idea of providing national identification for over a billion Indians. My petition contends that UID in its current form violates the right to privacy of a citizen, guaranteed under Article 21 of the Constitution. This is because sensitive biometric and demographic information of citizens are with enrolment agencies, registrars and sub-registrars who have no legal liability for any misuse of this data. This petition has opened up the larger discussion on privacy rights for Indians. The current Article 21 interpretation by the Supreme Court was done decades ago, before the advent of internet and today’s technology and all the new privacy challenges that have arisen as a consequence.
Rajeev Chandrasekhar, MP Rajya Sabha

“What is Aadhaar? There is enormous confusion. That Aadhaar will identify people who are entitled for subsidy. No. Aadhaar doesn’t determine who is eligible and who isn’t,” Jairam Ramesh

But Aadhaar has been mythologised during the previous government by its creators into some technology super force that will transform governance in a miraculous manner. I even read an article recently that compared Aadhaar to some revolution and quoted a 1930s historian, Will Durant. Rajeev Chandrasekhar, Rajya Sabha MP

“I know you will say that it is not mandatory. But, it is compulsorily mandatorily voluntary,” Jairam Ramesh, Rajya Saba April 2017.

August 24, 2017: The nine-judge Constitution Bench rules that right to privacy is “intrinsic to life and liberty” and is inherently protected under the various fundamental freedoms enshrined under Part III of the Indian Constitution

"Never doubt that a small group of thoughtful, committed citizens can change the World; indeed it's the only thing that ever has"

“Arguing that you don’t care about the right to privacy because you have nothing to hide is no different than saying you don’t care about free speech because you have nothing to say.” - Edward Snowden

Special

Here is what the Parliament Standing Committee on Finance, which examined the draft N I A Bill said.

1. There is no feasibility study of the project]

2. The project was approved in haste

3. The system has far-reaching consequences for national security

4. The project is directionless with no clarity of purpose

5. It is built on unreliable and untested technology

6. The exercise becomes futile in case the project does not continue beyond the present number of 200 million enrolments

7. There is lack of coordination and difference of views between various departments and ministries of government on the project

Quotes

What was said before the elections:

NPR & UID aiding Aliens – Narendra Modi

"I don't agree to Nandan Nilekeni and his madcap (UID) scheme which he is trying to promote," Senior BJP Leader Yashwant Sinha, Sept 2012

"All we have to show for the hundreds of thousands of crore spent on Aadhar is a Congress ticket for Nilekani" Yashwant Sinha.(27/02/2014)

TV Mohandas Pai, former chief financial officer and head of human resources, tweeted: "selling his soul for power; made his money in the company wedded to meritocracy." Money Life Article

Nilekani’s reporting structure is unprecedented in history; he reports directly to the Prime Minister, thus bypassing all checks and balances in government - Home Minister Chidambaram

To refer to Aadhaar as an anti corruption tool despite overwhelming evidence to the contrary is mystifying. That it is now officially a Rs.50,000 Crores solution searching for an explanation is also without any doubt. -- Statement by Rajeev Chandrasekhar, MP & Member, Standing Committee on Finance

Finance minister P Chidambaram’s statement, in an exit interview to this newspaper, that Aadhaar needs to be re-thought completely is probably the last nail in its coffin. :-) Financial Express

The Rural Development Ministry headed by Jairam Ramesh created a road Block and refused to make Aadhaar mandatory for making wage payment to people enrolled under the world’s largest social security scheme NRGA unless all residents are covered.


Thursday, April 14, 2016

9829 - How UPI works - Live Mint

Last Modified: Wed, Apr 13 2016. 10 54 AM IST


Unified Payment Interface is expected to a play a major role in achieving goals of universal electronic payments, a less-cash society, and financial inclusion

A Staff Writer

Graphic by Subrata Jana/Mint

The Unified Payment Interface (UPI) envisages a payments architecture that is directly linked to achieving the goals of universal electronic payments, a less-cash society, and financial inclusion, using the latest technology trends, laid down in the Reserve Bank of India (RBI) Payment System Vision Document (2012-15).
The RBI document reveals that the number of non-cash transactions per person currently stands at just six per year; only a fraction of the 10 million plus retailers in India accept card payments; banking services were available in less than 100,000 villages as of March 2011; and nearly 145 million households are excluded from banking.
Given this background, the National Payments Corp. of India (NPCI), which was set up in April 2009 with the core objective of consolidating and integrating the multiple systems with varying service levels, into a nation-wide, uniform and standard business process for all retail payment systems, undertook the task of implementing a UPI to simplify and provide a single interface across all systems.
Considering the fact that about 150 million smartphone users exist in India today, and that the number is expected to rise to 500 million over the next five years, the solution leverages the growing presence of mobile phones as acquiring devices and uses virtual addresses instead of physical cards, thus reducing cost of both acquiring and issuing infrastructure.
Value of UPI
UPI is a cheap, secure, reliable, mobile-first, interoperable, open-source, instantaneous settlement and both pull and push platform, according to a note by Bengaluru-based technology product start-ups thinktank iSpirt.
Moreover, while pre-paid wallets can’t do more than Rs.10,000 worth of transactions without KYC (know your customer) norms in a given month, a UPI-enabled platform bank account can transfer up to Rs.1 lakh instantaneously.
Besides, the cost of each transaction is going to be less than Rs.0.45, and one can also factor in all the savings from, and to, bank accounts. (http://bit.ly/1SYOShJ).
Virtual address
Now, one can use virtual/disposable accounts to do transactions generated right from the bank app. Through this, the merchant or the payee will not know your details and even if his system is hacked, you needn’t worry about losing money.
Pull and Push amount can be requested from a certain account or paid into some other account.
Mobile first
It’s one of the few systems in the world designed for the new mobile age, helping with easy integration across various platforms.
Interoperable OTP (one-time password) generated on one bank app can be used across another for transaction authentication. Also, multiple level of identifiers can be used (bank account, Aadhaar number, virtual identifier, mobile number, etc) to send or receive money. Biometric integration gives a second factor authentication, securing your account like none other in market.
Recurring payments
Payment Support Providers (PSPs) can provide an add-on for easy-to-do recurring payments on top of UPI.
Application Programming Interfaces (APIs) are going to be a game changer—they will ensure a level-playing field that will allow even a small start-up to do what big companies can.

What the UPI ecosystem involves
Level 0
People who build the UPI switch. A switch handles authentication and communication between the issuing and acquiring banks. ‘Generation Two’ switches were card machines on the merchants’ premises; authentication was handled by the machine and the bank customers’ private PIN was keyed into the merchant’s machine, and needed an expensive leased line to operate. ‘Generation Three’ switches are UPI ones—they enable customers to key in PIN/OTP (one-time password) on his/her smartphone, while authentication happens centrally. One big worry is how to get banks to agree to connect to the switch.
Level 1
Those who connect to the switch. In UPI’s case, they are called PSPs. (Old players were called Payment Gateways but these are now passe.) There will be many PSP builders—some inside banks, many outside as start-ups and merchants.
Technology worry: How to build a good PSP? What should I be focussing on?
Business worry: How to get a bank to “adopt” my PSP as the primary PSP?
Banks and customers are free to engage with multiple PSPs. The bank may have costs associated each time, while customers will only need to note down different addresses that will be associated with their identities on different PSPs.
Level 2
They connect to the UPI PSP, Visa/Master Card networks, RuPay or International payment gateways. They have to manage the user experience from the card to transaction completion.
Technology worry: How to reduce failure in the underlying system? How to handle refunds? How to handle COD (cash on delivery)?
Level 3
They are called on-boarders. They have to sign up new UPI, or new wallet, customers. On-boarding has high failure rates and lots of clever hacks go into making that less painful.
Technology worry: How to outwit others?
Business worry: How to find touchpoints before the consumer gets to the cart to make on-boarding happen?
Level 4
They are the application guys. They bring new cash-out (e.g. recharge players like PayTM), cash-in (e.g. Eko) and social payments (e.g. MyPoolin). In the future, this is where the action will be. They have to be a destination site or integrate into existing payment experiences.
Technology worry: How to integrate with others?
Business worry: Are they “allowed” (as they are initially in the grey area from RBI perspective)?
Enablers Innovative authentication collectors, E-sign, and digital consent are third-party systems that are needed by Level 1-4 people.
Source: iSpirt

Glossary
AEPS
An NPCI product, the Aadhaar Enabled Payment System (AEPS) offers instant, 24X7, interbank electronic fund transfer service through mobile phone. It allows Aadhaar biometric authentication-based transactions from a bank account that is linked with the Aadhaar number.
APBS
The Aadhaar Payments Bridge System (APBS) is a system allowing remittances to be made to an Aadhaar number without providing any other bank or account details. It uses the NPCI central mapper as a part of National Automated Clearing House (NACH) to enable government user departments to electronically transfer subsidies and direct benefit transfers to individuals on the basis of their Aadhaar number. Currently, the NPCI central mapper has about 160 million Aadhaar to bank mappings in its database. As part of large scale adoption of Direct Benefits Transfer (DBT) across all subsidy systems, it is expected that mapping database will have about 200-250 million Aadhaar mappings within next 12-18 months.
PSPs
Payment Support Providers (PSPs), as defined by RBI, collectively cover all RBI-regulated entities under the Payments and Settlement Act of 2007. These include banks, payments banks, PPIs, and other regulated entities. In addition to the Aadhaar and the mobile number as global identifiers (mapped by NPCI), PSPs can offer any number of virtual addresses to customers so that they can use the virtual address for making and receiving payments.
IMPS
Immediate Payment Service (IMPS), launched on 22 November 2010, is now available to the Indian public from over 65 banks.
USSD
Unstructured Supplementary Services Data
NPCI
National Payment Corporation of India
UIDAI
The Unique Identification Authority of India (UIDAI) which issues digital identity (called Aadhaar number) to residents of India and offers online authentication service.