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General Studies 2 >> Governance

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AADHAAR

AADHAAR

 
 
 
1. Context
 
Recently, The Reserve Bank of India proposed that the onboarding of Aadhaar-enabled Payment System (AePS) service providers will be streamlined and additional fraud prevention measures be introduced.
Aadhaar-enabled Payment Services (AePS) is a bank-led model that allows online financial transactions at Point-of-Sale (PoS) and Micro ATMs through the business correspondent of any bank using Aadhaar authentication. It removes the need for OTPs, bank account details, and other financial details.
 
 
 
2. About Aadhaar
  • The Aadhaar card is a 12-digit unique number issued by the Unique Identification Authority of India (UIDAI).
  • It contains biometric information, such as fingerprints and iris scans, along with demographic information, including individuals' addresses and date of birth.
  • The Aadhaar card serves as proof of identity and is valid anywhere in India for identification purposes. Having an Aadhaar card is compulsory while applying for a new PAN card or filing Income tax returns.
  •  However, it can be used as a single identification document. Banks, financial institutions and telecom companies can also use it as a Know-Your-Customer (KYC) verification
    mode and maintain profiles. 
 
Eligibility criteria for an Aadhaar card
  • Any Indian resident irrespective of his/her gender and age can enroll for an Aadhaar card.
  • As per the Aadhaar Act 2016, Indian citizens need to reside in the country for 182 days or more in the year preceding the date of enrolment.
  • Non-resident Indians (NRIs) and Overseas Citizens of India (OCI) are not eligible for an Aadhaar card. If NRIs and foreigners satisfy the minimum duration of stay as per the aforementioned Act, they can apply for an Aadhaar card.
  • Minors, too, can apply for an Aadhaar card. Children under the age of 5 will get the Blue Colour Aadhaar, which needs to be updated after they become 5 years old.
What is Masked Aadhaar?
  • Masked Aadhaar is similar to a regular Aadhaar with the difference that the Aadhaar number is partially hidden.
  • Only the last four digits of the Aadhaar number are visible and the rest are crossed.
  • It means replacing the first eight digits with some characters like 'xxxx-xxxx' while only the last four digits of the original number are visible.
  • Other details on the Aadhaar card remain the same such as the name, date of birth, gender, address, and QR code.
  • One can download an Aadhaar card easily online.
 
 
3. Aadhaar Made Mandatory for Various Schemes

The Supreme Court ruled that Aadhaar cannot be mandatory for welfare schemes, and the government has announced its implementation for several programs, causing confusion and raising concerns. 

Schemes Where Aadhaar is Mandatory

Welfare Schemes
  • Beedi/Iron Ore/Limestone workers' house subsidy
  • Supplementary nutrition program
  • Crop insurance and subsidized foodgrains/cash subsidy for farmers
  • Integrated Dept. of Horticulture, National Apprenticeship Promotion Scheme, and Janani Suraksha Yojana benefits
  • Training under Integrated Child Development Services
  • Grih Kalyan Kendra scheme benefits
  • National Mission for Empowerment of Women, Scheme for Adolescent Women, Central scholarships, and National Means-cum-Merit Scholarship
  • e-Panchayat training benefits and central college scholarships
  • Soil Health Management and Card Schemes
  • Supplementary meals at creches
  • Maternity Benefit Programme and Integrated Child Protection Scheme
  • Vocational training, loans, and other schemes for women
  • Water and social services benefits under Research and Development in Water Sector and National Social Assistance Program
  • Mid Day meal benefits (including cooks-cum-helpers)
  • Deendayal Antyodya Yojana and National Rural Livelihoods Mission
  • Benefits for disabled children under Sarva Shiksha Abhiyan
Non-Welfare Schemes
  • Booking tickets on the Indian Railways online platform (IRCTC)
  • Filing Income Tax returns or applying for PAN (linking PAN with Aadhaar mandatory)

4. Concerns and Implications

  • This contradicts the Supreme Court's ruling, raising concerns about legal challenges and potential violation of individual rights.
  • Exclusion of beneficiaries who lack Aadhaar or face difficulties registering could defeat the schemes' intended purpose.
  • Privacy and data security issues remain, as Aadhaar integration expands.
 
5. The Way Forward
 
Clear communication and transparency regarding Aadhaar's role in each scheme are crucial. Addressing concerns around accessibility, data security, and potential exclusion is necessary. Finding a balance between leveraging Aadhaar's benefits and upholding individual rights and liberties is key.
 
 
For Prelims: Aadhaar, Aadhaar-enabled Payment Services, RBI, welfare schemes
For Mains: 
1. Discuss the impact of Aadhaar on financial inclusion and digital transactions in India. What are the challenges and opportunities for further improving financial accessibility using Aadhaar-based systems? (250 words)
2. Discuss the potential of Aadhaar in enhancing internal security and countering terrorism. How can this be achieved while safeguarding individual liberties and preventing misuse of the system? (250 words)
3. Imagine you are tasked with leading a public outreach campaign on Aadhaar in a rural community. How would you address concerns, clarify misconceptions, and ensure informed participation? (250 words)
 
Previous Year Questions
 
1. Consider the following statements: (UPSC 2017)
1. National Payments Corporation of India (NPCI) helps in promoting financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme
Which of the statements given above is/are correct?
A. 1 only        B. 2 only           C. Both 1 and 2           D. Neither 1 nor 2
 
2. Consider the following statements: (UPSC 2020)
1. Aadhaar metadata cannot be stored for more than three months.
2. State cannot enter into any contract with private corporations for sharing of Aadhaar data.
3. Aadhaar is mandatory for obtaining insurance products.
4. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.
Which of the statements given above is/are correct?
A. 1 and 4 only          B. 2 and 4 only        C. 3 only             D. 1, 2, and 3 only
 
3. Consider the following statements: (UPSC 2018)
1. Aadhaar card can be used as proof of citizenship or domicile.
2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority.
Which of the statements given above is/are correct?
A. 1 only            B. 2 only             C. Both 1 and 2             D. Neither 1 nor 2
 
Answers: 1-C, 2-B, 3-D
 
Source: The Indian Express

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