Government wants Aadhaar-enabled payment to replace debit, credit cards

The initiative can help the government deal with situations like recent demonetisation and curb black money menace while bringing in more financial transaction transparency.

By: PTI | New Delhi | Updated: December 2, 2016 10:51 am
Aadhaar, Aadhaar card, cashless economy, india cashless economy, e wallets, e payment, online payment, online wallets, aadhaar payment, Aadhaar card payment, India news, Business news The initiative can help the government deal with situations like recent demonetisation and curb black money menace while bringing in more financial transaction transparency. (Source: File)

The Unique Identification Authority of India has planned to increase biometric authentication capacity through Aadhaar to 40 crore a day from 10 crore to encourage more use of the platform for realising a cashless society. The government is concurrently working on developing a common mobile phone app that can be used by shopkeepers and merchants for receiving Aadhaar-enabled payments bypassing credit and debit cards, pin and password.

 

Through this mobile application, the handset will be used for authenticating biometrics of customers making Aadhaar enabled payment. UIDAI will eventually increase its biometric authentication capacity to 40 crore, UIDAI Chief Executive Officer Ajay Bhushan Pandey told reporters here.

He further said on Thursday, “We will create awareness about this mode of transactions. We will eventually create capacity for 40 crore authentications. Yesterday, 1.31 crore Aadhaar-enabled biometric authentications were reported. We will increase it gradually.”

He explained that these biometric authentications include attendance marked by employees of government establishments. The initiative can help the government deal with situations like recent demonetisation and curb black money menace while bringing in more financial transaction transparency.

The 12-digit number has already been issued to 1.08 crore people and 99 per cent of adults have been covered. People can link their Aadhaar with their bank accounts and use Aadhaar Enabled Payment System (AEPS) for funds transfer, balance enquiry, cash deposits or withdrawals and inter-banking transactions.

The biometric authentication capacity of AEPS is 10 crore, which will be eventually raised to 40 crore, the CEO said. AEPS allows users to make payments to merchants or shopkeepers without credit or debit cards using their Aadhaar number and biometric authentication.

They just need to quote Aadhaar and authenticate it through biometrics. The money is directly transferred from the customer’s bank account to the merchant’s. Subscribers of 118 public and private banks can use AEPS at present.

NITI Aayog CEO Amitabh Kant said the government is working on incentivising cashless transactions and disincentivising cash transactions. “We are asking mobile manufacturers to see if all mobiles made in India should be in-built with iris or thumb identification system to help Aadhaar-enabled transactions,” Kant said.

Kant is part of the chief ministers committee that will lay out a road map for implementation of digital payments over the next one year. The first meeting is scheduled Thursday.

IT Secretary Aruna Sundarajan said the ministry has kept aside Rs 100 crore to incentivise enrolment of merchants on to the digital platform to help push the drive. “IT department is providing incentive of Rs 100 for every merchant enrolled through over two lakh common service centres across India. The ministry will undertake a major outreach communication campaign starting from Monday,” she said.

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  1. A
    Anand
    Dec 5, 2016 at 3:53 am
    Indian Citizens at it bad time in the hand of corporates
    Reply
    1. A
      ashok s
      Dec 2, 2016 at 4:50 am
      First bj p was against aadhar , now it is praising aadhar scheme, it was against gold curb , but now keeping tab on it. By way of demonetization it killed small medium type vendors , so in some way supporting multi chain retails like hypermarkets super mkts , which they themselves were opposed to during Congress time
      Reply
      1. H
        haha
        Dec 2, 2016 at 6:01 am
        With the kind of information exposure of aadhar to Reliance Jio by the Govt, citizens of the country would be s to go for such a payment system which can be so extensively misused considering how less the people know about electronic systems
        Reply
        1. J
          Joydeep
          Dec 2, 2016 at 6:04 am
          The people running the country have gone - raving mad. Time to get rid of them.
          Reply
          1. K
            kaawi
            Dec 2, 2016 at 6:34 am
            Its tragedy that a govt which was dealing well with terrorists, anti nationals and Pak has suddenly attacking common man and committing a grave ber and digging its own grave.
            Reply
            1. H
              Harminder Singh
              Dec 2, 2016 at 4:17 am
              I'm 63 my mother's 83 it's now got too confusing neither are we going to live for ever so we have decided living high up in the mountains that we intend to spend every penny we can, keep our permiisable gold for any natural calamity a bit of cash at home for the same.Pay by cheque which we do where ever we can.Cause as one gets older we treasure our peace of mind .
              Reply
              1. V
                Vihari Naidu
                Dec 2, 2016 at 5:15 am
                Oh no, one more demonetization or what ? Just came back waiting in ATM line for hours.
                Reply
                1. S
                  Sanjiv
                  Dec 10, 2016 at 11:23 am
                  Dear All, Any step for progress of country should be respected. irrespective of success / failure / planned / unplanned / BJP / Congress. Planning never ends, only implementation brings the success. it may bring some problems but we should look forward to solve them rather to criticize.
                  Reply
                  1. S
                    ShivcharanDas Sharma
                    Dec 8, 2016 at 4:58 pm
                    For 'apasm' kindly read as .spasm' in my just previous post . Excuse me for the error . shivcharan
                    Reply
                    1. S
                      ShivcharanDas Sharma
                      Dec 8, 2016 at 2:29 pm
                      Jai Shri Ram . It apears to be a very useful information provided even the most ordinary person is got induced , customised and built up faith and confidence/faculty in its use . It should be hackproof . Jai Shri Ram . shivcharan.
                      Reply
                      1. S
                        ShivcharanDas Sharma
                        Dec 8, 2016 at 2:58 pm
                        Mr. Joydeep , please in future please compose yourself before posting comments . Only apasm and sentiment of which you seem to be swa off does not do well . shivcharan .
                        Reply
                        1. S
                          Shantanu
                          Dec 2, 2016 at 10:22 am
                          Yet another proposal by Modi, the utterly useless Jaitley, and the BJP, to hood-wink the citizens. Demonetization is probably the most badly planned and implemented move by any government in the history of India. They continue to fool the people by slogans like digital india, cash-less (now suddenly changed to less-cash) society/economy, etc. With some of the lowest and slowest internet/broadband coverage in the world, and with less than 20 percent of the potion with smartphones, all this will not happen in decades. Meanwhile, stand in queues for hours at banks and ATMs every day while the loud mouths continue to deceive you.
                          Reply
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