Guru Malladi | 10 September 2013
EY’s Guru Malladi reports on the Indian Government's project to set up an online database of personal biometric identities for nearly a billion people.
- See more at: http://www.publicfinanceinternational.org/features/2013/09/india-creating-a-unique-identity/#sthash.rk3i7v2o.dpuf
A revolution in is under way. A unique identification number is set to be given to India’s 1.2 billion residents, something that has never before been attempted anywhere in the world. Audacious, transformational and necessary — it ticks all the boxes.
The lack of an official ID prevents individuals from accessing basic services such as opening a bank account and also means there is a lack of accountability and transparency in the delivery of social security benefits which, in turn, encourages corruption. To address these challenges, Indian policy-makers decided to create an online ID platform, overseen by a new body, the Unique Identification Authority of India (UIDAI). The technology designed by UIDAI is underpinned by the latest biometric, cloud computing, encryption and search capabilities to ensure that every resident is issued a unique ID, and no resident receives more than one official identification.
Such a task involves capturing 12 billion fingerprints, 2.4 billion iris scans and 1.2 billion photographs in a database, as well as checking the resident’s number against every other record to ensure the uniqueness of the ID. All this is being achieved with vendor-neutral technology that ensures the Indian Government is not locked in to any one particular hardware or software.
On 29 September, 2010, Rajana Sonawane, from Tembhli village in the Indian State of Maharashtra, was issued the first 12-digit unique ID by the Indian Prime Minister. This set of numbers will serve as her identity throughout her life. Since then, UIDAI has scaled up its operations and is now issuing a million unique ID numbers every day. Its biometric database is now the largest in the world, having long since overtaken its counterpart in the US, which has only 120 million records for visa applications. As of June 2013, 364 million Indian residents have been issued with their 12-digit number and it is expected that more than 600 million will be issued by 2014. A large percentage of Indian residents will therefore leapfrog from a world of no identity to one where their identities can be validated anytime, anywhere in just a few seconds.
The 12-digit unique ID, or Aadhaar (which means foundation in Hindi), brings with it the promise of economic and social transformation. UIDAI has created digital platforms that authorize payments for a resident using a cell phone, smart phone, tablet or any other device linked to the internet, as well as systems that enable the transfer of money directly into an Aadhaar linked bank account. Pilot projects are also under way, whereAadhaar is being used by banks to deploy low cost micro-ATMs in villages that leverage fingerprint authentication to authorize banking transactions.
In some Indian states, Aadhaar authentication is being used to deploy subsidized food grains and cooking gas. In 2012, the Indian Government also announced a Direct Benefits Transfer Program, in which various welfare benefits (scholarships, pensions, health care payments, and cooking fuel subsidies) are transferred to an Aadhaar-linked bank account, thereby boosting financial inclusion and eliminating a long trail of intermediaries. Additionally, telecom operators have also started using online Aadhaar authentication when providing new mobile connections and Indian agencies are increasingly recognizing Aadhaar as a proof of identity for multiple services, including passports, voting and train travel.
But it’s not just the government agencies that are expected to leverage Aadhaar to overhaul their delivery processes and systems. The private sector is also keen on adopting Aadhaar for advanced applications that include an individual’s credit rating, electronic medical history and education records. The platform approach and interfaces made available by UIDAI allows entrepreneurs and software providers to develop new and innovative applications in sectors such as health, education, employment and agriculture.
With UIDAI as the focal point and responsible for the ID platform, there is a thriving ecosystem of players — logistics partners, consulting firms, biometric service providers, device vendors, software solution providers — which are working alongside UIDAI to streamline service delivery by using a more datadriven and electronic approach.
EY India is proud to be working with the Indian Government and UIDAI to provide consulting services for setting up the central ID infrastructure, and on other critical projects which support the day-to-day operations at UIDAI. The biggest reward for EY, however, will come when the ID program and Aadhaar applications allows many more Indian citizens to join the mainstream population on the country’s journey of economic and social growth.
So next time if you are in India and see a person pay their cab fare with the tap of a finger, don’t be too surprised!
This feature was originally published in Dynamics EY's international development magazine, in August 2013
- See more at: http://www.publicfinanceinternational.org/features/2013/09/india-creating-a-unique-identity/#sthash.rk3i7v2o.dpuf