By Dheeraj Tiwari & M Rajshekhar, ET Bureau | 9 Aug, 2014, 10.40AM IST
NEW DELHI: The finance ministry has decided to limit Aadhaar's role in its welfare scheme payments and, instead, use ATM-enables RuPay cards for last-mile authentication to withdraw money.
While it will continue to use Aadhaar for opening accounts and to eliminate ghosts and duplicates from beneficiary rolls, the ministry has decided to give RuPay ATM cards with bank accounts being opened under to-be-announced financial inclusion drive, Sampoorn Vittiyea Samaveshan, government offici ..
With the latest development, Aadhaar will be used to identify bank accounts of beneficiaries, as both bank and government databases will be seeded with the Aadhaar number. However, once the cash flows into the Aadhaar-linked bank account, last-mile authentication when the money is being withdrawn will be done using the authentication systems of either the relevant bank or last-mile service provider such as BCs or a cellphone company.
MS Sriram, visiting faculty at IIM Bangalore's Centre ..
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