Oct 9, 2013, 02.55AM IST
By Varad Pande
A recent Supreme Court interim order has reopened the debate on Aadhaar. We need to understand the implications of the order and reassess the "why" and "what" of Aadhaar. The order says that no service should be denied to a person who doesn't have Aadhaar. This is a fair observation.
Aadhaar has always intended to be an instrument of inclusion, not exclusion. The Unique Identification Authority of India, which manages the Aadhaar programme, has always maintained it is voluntary.
A government circular issued in December 2012 makes it clear that "no person should be denied service for want of Aadhaar..." Clear protocols are being put in place for "exception management", or ensuring that service is not denied to anyone. For example, for cooking gas subsidy, the Aadhaar-based payment has been initiated only in districts with over 80% enrolment. Focused enrolment campaigns are being undertaken and issuance of Aadhaar fast-tracked.
Permanent enrolment centres are being set up at the block level to provide ongoing enrolment. Second, the order says it should be checked whether a person is "eligible" for Aadhaar and that Aadhaar should not be given to illegal immigrants.
From the outset, Aadhaar has been a programme for all Indian residents. It does not go into the complex question of citizenship and does not confer any rights of citizenship. Nor does it entitle a resident to any benefits by itself, it is a mere proof of identity.
The prerequisites for enrolment into it have been deliberately kept at a minimum — a valid proof of identity and address. Those who don't have these can be introduced by another Aadhaar holder, subject to checks and balances.
For the poorest and the most marginalised, Aadhaar becomes the first step on the ladder of social and economic empowerment. This is also a good moment to reassess why India is undertaking the gigantic Aadhaar exercise. The first benefit is proof of identity. But the benefits go much further.
Aadhaar is now recognised as a valid know-your customer (KYC) to open a bank account and many other services. Aadhaar has launched an electronic KYC service that makes this process instantaneous. It will now be possible to open bank accounts instantly, at the doorstep, through biometric-enabled micro ATM machines handled by business correspondents, if one has an Aadhaar number.
This opens up access to a range of formal financial services for the poor.
Aadhaar is the basis for the direct benefits transfer (DBT) programme that aims to transform public service delivery in India by providing payments to intended beneficiaries directly. This cuts out several layers of intermediaries who have been the bane of the delivery problem in India.
DBT-Aadhaar can be a true "win-win": by eliminating "duplicates" and "fakes", it ensures that the right person gets the benefits, and generates fiscal savings at the same time. Successful experiments in districts like East Godavari in Andhra Pradesh, with more than 95% enrolment, show that beneficiaries are much more satisfied with the new DBT-Aadhaar system and, at the same time, fiscal savings of up to 20% are being realised.
