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Authentication » Aadhaar & Financial Inclusion » Aadhaar as Financial Address

Aadhaar as Financial Address

 

As Aadhaar is unique and does not change over the lifecycle of an individual, the 12-digit Aadhaar is sufficient to transfer any payments to an individual. Aadhaar offers the possibility of sending money by just using the 12-digit number for lifetime without bothering about any changes in the bank account of the individuals. Thus, with this unique property of being valid for a lifetime, Aadhaar is very well perceived as a Financial Address in the banking sector. This property of Aadhaar with its uniqueness property have been the foundation stones of Direct Benefit Transfer (DBT) program of government of India.

Some of the key benefits for the stakeholders have been highlighted below:

Residents
  • Obviates need for multiple tie-ups with different banks for different schemes
  • Faster channel for receiving all welfare payments
Government Departments
  • Supports various schemes by eliminating ghost beneficiaries via use of Aadhaar as primary key
  • Sub-serves goal of furthering Financial Inclusion by processing government disbursements through Aadhaar number
  • Reduce time and cost in processing of payments
  • Provide electronic audit trail and end-to-end visibility for all payments
Reserve Bank of India & Banks
  • Sub-serves goal of furthering Financial Inclusion by processing government disbursements through Aadhaar number
  • Promotes electronification of retail payments through a secure mechanism
  • Increased number of Aadhaar linked No-Frills accounts will increasingly make the proposition profitable for banks
  • Reduce transaction cost for banks
UIDAI
  • Use of Aadhaar Payments Bridge would help achieve stated purpose of improving delivery of welfare services