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.


Saturday, November 12, 2016

10521 - One platform, multiple benefits - Business Standard


Financial institutions can attract customers at a low cost by using the IndiaStack platform. Being entirely paperless, an individual can also quickly open a new account

Naveen Kukreja 
October 8, 2016 

The government and a digital think-tank called i-Spirit (comprising people who built the government's Aadhaar initiative) are working together on a technology called IndiaStack. This has the potential to bring down costs involved in financial transactions, make account opening with banks, mutual funds, etc, easy, and also make the process paperless and quicker. The technology platform also has the potential to bring down cash transactions in the economy.

How it works

IndiaStack is structured as a four-layered pyramid, where all or a combination of these can work together.

Aadhaar-based digital identity: The first layer will provide a universal biometric digital identity, based on your Aadhaar details. This will enable online authentication through the fingerprint or iris.

Digital locker: The second layer provides a safe deposit locker for storing critical documents. These can include your Aadhaar details, PAN details or even your child's school report cards. An individual can access these documents from anywhere and digitally send these to a bank or to any other financial institution for documentation and verification.

Digital signature: The third layer is the digital signature. This will eliminate the need to physically sign documents for opening bank accounts, applying for loans or credit cards, or even for investing in mutual funds. Instead, you will be able to sit in the comfort of your home or office and sign the documents without actually printing them. These three layers will help create a paperless and presence-less banking system.

Payment interface: The fourth layer consists of the Unified Payment Interface (UPI) built by the National Payments Corporation of India (NPCI). This layer is aimed at making money transfers as simple as sending a text message or an e-mail. Unlike the current money transfer systems, where you have to type your card details, user names or net banking/wallet password, UPI system only requires your bank-provided virtual payment address (like amit@xyzbank) and a mobile banking PIN (MPIN). UPI enables seamless movement of funds between people, banks and mobile wallets, thereby incentivising use of digital payments, rather than cash.

Makes your life easy

Consider the case of Saurabh Bhatia, a grocery store owner, who wants to open a bank account. He has been postponing this task, as he will need to visit a bank at a time when he is needed at his shop. He will also need to carry original and photocopies of documents to provide proof of identity and address, then wait for the bank to process his request. It will take him at least a couple of working days to get an operational account.

His store being small, Bhatia's customers pay in cash for mostly small-value transactions. He doesn't use card-based payment as it is an added cost to his business. But, he will need to visit the bank every time he needs to deposit money. Hassles like these cause entrepreneurs like Bhatia to prefer cash over formal banking channels. It also means they don't have a proper banking history, a hindrance for accessing bank credit. IndiaStack has the potential to manage all the worries of someone like Bhatia.

First of all, the platform will do away with the requirement of presenting original documents for KYC processing. The system will allow Bhatia to directly produce the documents from his digital locker to the banks. The digital locker will further solve his problem of safekeeping and allow anytime access to important documents. With the digital signature feature, he can sign-off on loan documents or KYC-related documents without worrying about visiting bank branches.

The ease of payments because of UPI will encourage more customers to make payments to Bhatia using the banking channel. The frequent transactions through his bank account will also help create a banking history, which could help him secure bank loans in the future. The integration of e-KYC, e-sign and UPI layers will also enable banks to instantly process his loan application and disburse loans.

IndiaStack also has the potential to reduce the costs involved in other financial transactions. At present, the cost of acquiring a customer for a mutual fund or a bank is Rs 1,200-1,500. Most of this goes into document collection, verifying these, going back to customers if there are errors, and so on. If a fund house spends that kind of money to get a customer, it uses commissions to cover the cost. IndiaStack will allow fund houses to do all these tasks online for as little as Rs 10. Fund houses can pass on this benefit to the investor. All the information is pulled with the consent of the customer. Similarly, banks can lower processing fees on a loan.

Better financial products

However, it is not only Bhatia who will benefit from this open digital infrastructure called IndiaStack. The platform has the potential to transform the financial landscape by enabling product innovation, reducing customer acquisition and operating costs, and enabling larger sections to access financial products.

The data created from bill payments, digital identity, social media and customer transaction history can be used to develop customised solutions like daily insurance policies, intra-day loans and mobile credit cards. Lower customer acquisition and operating costs will reduce the cost of servicing banking consumers and allow banks and non-banking financial companies to improve credit access for the unbanked population.
The writer is CEO and co-founder, Paisabazaar.com

INDIASTACK TO REDUCE COSTS
  • Send documents using DigiLocker for identity and address proof
     
  • Get KYC done instantly online
     
  • Documents can be signed online using digital signatures
     
  • Once on-boarded, instantly transact using UPI
     
  • Institutions pay a fraction of current cost they incur for customer acquisition
     
  • Lower costs can be passed on to customers in form of lower commissions and processing fee