UID to introduce micro-payment platform
As part of the UID project, the government plans to introduce a micro-payment platform that would allow for easy transactions in unbanked areas of the country. It will also create a nationwide network of BCs for enabling interoperability
The government’s ambitious unique identity (UID) project, under the stewardship of Nandan Nilekani, proposes to introduce a micro-payment platform that would make use of mobile technology. This platform would enable business correspondents (BCs) to carry out instant transactions at the remotest places in the country. The BC model has been implemented by the government in its efforts to tap the unbanked population in the country, as a part of its financial inclusion measures.
This micro-payment platform would function through low cost devices (or micro ATMs), said Mr Nilekani at Monday’s Banking Conclave 2009-10 in Mumbai. Also, these ‘micro ATMs’ would function as a network through connections with other banks across India. This would enable a person to instantly deposit or withdraw funds regardless of the bank associated with a particular BC. However, he mentioned that for this platform to become a reality, an inter-bank switch (similar to the National Financial Switch) would be required to make the system interoperable. Mr Nilekani pointed out that the National Payments Corporation of India (NPCI) would look into the matter.
Speaking at the conclave, Mr Nilekani said, “This will create a whole new paradigm in the financial inclusion process. What we propose is really creating, in effect, a low cost, high volume equivalent of an ATM network. This device will be based on a mobile phone connection and would be made available at every BC. Customers would just have to get their identity authenticated and withdraw or put money into their bank accounts. This money will not come from the ATM, but from the cash drawer of the BC.”
Stressing the importance of having these BCs connected, he added, “It is essential that it is made an interoperable system. Customers should be able to go to any BC to withdraw money, regardless of who is the merchant bank of the BC. It is similar to the way bank ATMs operate. If we have these BCs connected, it would also lead to more competition, thus bringing down transaction costs for customers.”
Mr Nilekani was also optimistic about the success of financial inclusion efforts, pointing out that various things are coming together at a very opportune and critical time to make it more feasible. These include the adoption of new technologies by the banking system, the spread of the mobile network, easy verification of identity supported by the UID project, the large flow of money between people through remittances or government welfare schemes and the regulatory environment being amenable to put things together.
Posted by Christine Hobson at 4:57 AM
Why this Blog ? News articles in the Wide World of Web, quite often disappear with time, when they are relocated as archives with a different url. Archives in this blog serve as a library for those who are interested in doing Research on Aadhaar Related Topics. Articles are published with details of original publication date and the url.
In 2009, I became extremely concerned with the concept of Unique Identity for various reasons. Connected with many like minded highly educated people who were all concerned.
On 18th May 2010, I started this Blog to capture anything and everything I came across on the topic. This blog with its million hits is a testament to my concerns about loss of privacy and fear of the ID being misused and possible Criminal activities it could lead to.
In 2017 the Supreme Court of India gave its verdict after one of the longest hearings on any issue. I did my bit and appealed to the Supreme Court Judges too through an On Line Petition.
In 2019 the Aadhaar Legislation has been revised and passed by the two houses of the Parliament of India making it Legal. I am no Legal Eagle so my Opinion carries no weight except with people opposed to the very concept.
In 2019, this Blog now just captures on a Daily Basis list of Articles Published on anything to do with Aadhaar as obtained from Daily Google Searches and nothing more. Cannot burn the midnight candle any longer.
"In Matters of Conscience, the Law of Majority has no place"- Mahatma Gandhi
Ram Krishnaswamy
Sydney, Australia.
Aadhaar
The UIDAI has taken two successive governments in India and the entire world for a ride. It identifies nothing. It is not unique. The entire UID data has never been verified and audited. The UID cannot be used for governance, financial databases or anything. It’s use is the biggest threat to national security since independence. – Anupam Saraph 2018
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
In the Supreme Court, Meenakshi Arora, one of the senior counsel in the case, compared it to living under a general, perpetual, nation-wide criminal warrant.
Had never thought of it that way, but living in the Aadhaar universe is like living in a prison. All of us are treated like criminals with barely any rights or recourse and gatekeepers have absolute power on you and your life.
Announcing the launch of the # BreakAadhaarChainscampaign, culminating with events in multiple cities on 12th Jan. This is the last opportunity to make your voice heard before the Supreme Court hearings start on 17th Jan 2018. In collaboration with @no2uidand@rozi_roti.
UIDAI's security seems to be founded on four time tested pillars of security idiocy
1) Denial
2) Issue fiats and point finger
3) Shoot messenger
4) Bury head in sand.
God Save India
