Sonali Das, TNN Oct 25, 2013, 12.45PM IST
Jharkhand chief secretary RS Sharma, who was formerly the director general of the Unique Identification Authority of India (UIDAI), speaks to TOI's Sonali Das on the 12-digit individual identification number and its use for direct benefit transfer to beneficiaries.
What is Aadhaar?
Aadhaar is a 12-digit individual identification number issued by the UIDAI that serves as a proof of identity and address anywhere in the country. Any individual, irrespective of age and gender, who is a resident of India and satisfies the verification process laid down by UIDAI, can enrol for Aadhaar. Each individual needs to enroll only once which is free of cost. Each number will be unique to an individual and will remain valid for life. It will help provide access to banking services, mobile phone connections and other government and non-government services.
Can you outline its objectives?
For many people in India, non-possession of any ID document makes it difficult for them to have access to many services and Aadhaar fills this gap. The objective of Aadhaar is to create an identity platform which is inclusive, improves governance and service delivery and provides access to formal systems of service delivery.
The government has decided to use Aadhaar in direct benefit transfers to beneficiaries. Why?
Direct Benefit Transfer (DBT) refers to a situation where the benefit is transferred to beneficiaries' account using Aadhaar as financial address. One can use Aadhaar to open a bank account and as the address to transfer money. It ensures that the money goes into that account only. By using Aadhaar authentication, one can withdraw the money, thus facilitating banking at your door-step. It also ensures that only the depositor can draw the money as it requires his presence and finger-prints at the time of withdrawal.
Last, it provides an end-to-end tracking of the money from the time of crediting into one's account till the withdrawal. One of the least understood and transformational aspects of DBT and Aadhaar-enabled service delivery is the 'portability' that it offers to customers. Portability, which means giving power to the customer to choose the service-provider, changes the power equation and strikes on the very cause of corruption and rent-seeking. Current technology and model does not support it.
But Aadhaar-enabled PDS will be able to ensure this as now your identity and ration eligibility is online! Aadhaar proposes to bring this portability in areas where it was not possible earlier.
Government benefits from this in two ways. First, duplicates and fakes are eliminated cleaning the delivery system. Second, if it is a subsidy domain (like LPG cylinder at subsidized rates), then the dual pricing goes away and there is no scope for diversion of subsidized cylinders to non-subsidized usage.
If Aadhaar is used with DBT, how much in public funds the state government can save and how?
The state is implementing a number of programmes where subsidies/benefits are distributed among people. Some are in kind, like in PDS and agricultural inputs, and others are in cash like social security pensions, scholarships, MNREGA wages, money for Indira Awaas Yojana, among others. Though it will be difficult to provide an exact figure of expenditure, average annual expenditure on these will be Rs 5,000 crore per annum. Even by taking an average of 20%, we save a sum of Rs 1,000 crore, just through elimination of duplicates and fakes.