What is Aadhaar and why is it important?

What is Aadhaar?

What is Aadhaar & Why is it Important?

Aadhaar is an 12-digit unique identity number that can be obtained voluntarily by residents of India, based on their biometric and demographic data. The data is collected by the Unique Identification Authority of India (UIDAI), a statutory authority established in January 2009 by the Government of India, under the jurisdiction of the Ministry of Electronics and Information Technology. 

Aadhaar is the world's largest biometric ID system, with over 1.2 billion enrolled members as of April 2019. It is considered a foundational pillar of India's digital infrastructure and is used as an authentication tool for various services such as banking, mobile phone connections and other government and non-government services. Aadhaar is aimed at providing a digital identity to India's large population of 1.3 billion people, which is estimated to be about 99% of its total population.

Aadhaar is important for every Indian citizen because it helps to establish their identity and to avail of government subsidies and services.

Aadhaar is important for every Indian citizen because it helps to:

• Verify identity: Aadhaar can be used to verify the identity of individuals, which is important for a wide range of services such as opening a bank account, applying for a loan, or obtaining a passport.

• Avail government subsidies and services: Aadhaar enables Indian citizens to access various government subsidies and services, such as the Public Distribution System (PDS) and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

• Facilitate direct benefit transfer (DBT): Aadhaar enables government benefits to be transferred directly to the beneficiary's bank account, eliminating the need for intermediaries and reducing the risk of fraud.

• Reduce fraud and corruption: Aadhaar helps to reduce fraud and corruption by ensuring that only genuine beneficiaries are able to access government subsidies and services.

• Streamline KYC processes: Aadhaar helps to streamline the Know Your Customer (KYC) process, which is important for financial services providers who are required to verify the identity of their customers.

• Increase financial inclusion: Aadhaar enables the unbanked and underbanked population to open bank accounts, access credit, and invest in mutual funds, which helps to increase financial inclusion in India.

Let's discuss why Aadhaar is so important for the Government & Citizen of India.

For Government:

Uniqueness

UIDAI provides Aadhaar to an individual only after collecting and verifying the demographic and bio-metric details, this system verifies the Indian citizen's veracity and eliminates the possibility of duplication.

Direct Benefit Transfer (DBT)

The Aadhaar project has been linked to some public subsidies and unemployment benefit schemes like Domestic LPG Scheme and MGNREGA, its direct benefit is that the person does not have to wander anywhere, the subsidy money is directly transferred to his/her bank account, which is linked to the Aadhaar.

Examination of Benefits of Government Schemes

Since every person in Aadhaar has a unique identity so it is helpful for the government to tracking purpose. So that they can check it at regular internals and identify how many individuals have availed government schemes under various programs.

Work Speed

Most of the government and non-government offices are connected with UIDAI's special verification system and under this system the verification process of the person is done within minutes, which used of take months before and due to this facility work is going on at a fast pace.

Reduction in paper work

In Aadhaar, demographic and bio-metric details of individuals are already recorded, so by providing Aadhaar, you can reduce unnecessary documentation.

For Citizens:

Unique Identification

Aadhaar is a unique number and contains the demographic and bio-metric details of each person, so it works as both POI and POA.

Online Availability

UIDAI provides a lot of services in online portal and for this you do not need to go anywhere, just through internet you can avail its services anywhere and anytime. 

Portability

Aadhaar provides national portability under which it can be verified anywhere through online and you do not need to create fresh documents. This is very helpful for those brothers and sisters who  have to shift from one state to another for their job.

Link to other services

Of course, there are many benefits of linking Aadhaar to Bank/PAN/UAN/Mobile & other services as verification can be done easily only through Aadhaar OTP facility, which saves time.

Instant Result

Earlier most of the time consuming task were for any organisation to verify a person, which now goes through Aadhaar in minutes and the person does not have to wander repeatedly to prove his/her veracity.

Final Words!

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