1. The Aadhaar project 26th February 2013
UIDAI 1

2. Structure of the presentation
Overall mandate of the Aadhaar Project
Aadhaar and it’s potential
Direct Benefit Transfer and Aadhaar
Concerns and responses

3. Overall mandate of the Aadhaar project

4. Context Providing a formal identity proof to millions of residents
This identity proof would be a gateway to access services
Need to streamline government expenditure – cut wastage and leakage
Need for a transparent and accountable system of public expenditure
Social inclusion project with a developmental focus

5. Mandate
UIDAI established by an Executive Notification in January 2009 by the Planning Commission
To generate and assign Unique ID Numbers to Residents
Define usage and applicability of UID for delivery of various services
Enrolment – One time activity, to establish uniqueness
Online Authentication – Transactional, at delivery of service

6. UIDAI issues Aadhaar numbers…
UID  Unique number  Random number
Name
Parents
Gender
DoB
PoB
Address
UID =
Basic demographic data and biometrics stored
Standardized identity attributes
No duplicates(1:N check)
Minimal demographic data collected
In simple words, we will enroll everyone with basic identity attributes, ensure that there are no duplicates. We will not collect profiing attributes and we will not maintain transactional records.

7. … and authenticate IDs online, real-time
Authentication - ‘Are you who you claim to be?’
UID =
Our audacious goal is to provide ubiquitous on-line authentication. Authentication to us is simple: Are you who you claim to be? Answer is only yes or no. there is no invasion of privacy. No information is disclosed during authentication.
Mandate is simple. How do we achieve it?
Central UID database
1:1 check, no ID fraud
Only YES/NO response, no details – no invasion of privacy
Person can see self-details, no one else can

8. Where are we today… Started issuing in Sept 2010
28 crore Aadhaars issued so far
More than 30 crore residents enrolled
Target – 60 crore by 2014

9. Enrolment centre, Andhra Pradesh

10. Enrolment Centre, Jharkhand

11. Enrolment Centre, Puducherry

12. Aadhaar and it’s potential

13. Service Delivery potential due to Authentication
Transactions normally require verification of identity
Aadhaar online authentication will provide a common platform which can be used across all transactions and other applications.
Entitlements should reach the intended beneficiary – non-transferability can be ensured
This can be effectively done by authentication at the point of service delivery
Many sectors will be able to use as a proof of presence for the beneficiary

14. Empowerment, Choice and Convenience
Identity
Unique identity to every resident of India which is nationally valid – especially useful for those who have no proof of identity
Mobility
Aadhaar authentication because of its on-line nature can also be verified anytime, anywhere. 
Gateway to Services
As Aadhaar can become a KYC for a whole range of products and services (bank accounts, mobile connections, LPG connections, state Govt. services, insurance, etc)

15. Empowerment, Choice and Convenience
Availability of many access points to withdraw benefit make it far more convenient for the intended beneficiary.
Auditable and Transparent
On-line real time transaction authentication ensures that the entitlements reach intended beneficiary.
Choice
Interoperable Micro-ATM/FPS network can ensure that the beneficiary has choice. This enhances her/his empowerment.

16. Aadhaar based government application pilots – Country wide spread
Aadhaar Applications in States
Scholarships
MG-NREGA,
Jharkhand
Andhra Pradesh
PDS
Social Security Pensions
Maharashtra
LPG Subsidy
Karnataka
Employee Salary
Sikkim
Old Age Pension
Tripura

17. MNREGA payments through Micro-ATM in Jharkhand

18. PDS delivery based on Aadhaar Authentication in East Godavari, Andhra Pradesh

19. Old age pension payment in Tripura

20. Aadhaar platform for Banking
Open Bank Accounts using Aadhaar – Sufficient KYC
Existing Bank Account can be linked to Aadhaar number
Access
Transfer funds to Aadhaar Enabled Accounts
Simplifies disbursal of funds – uses only one account for all disbursals – Convenience for the beneficiary
Address
Withdrawal and deposit, check balance
End to end auditability and traceability
Inter-operable, portable anytime anywhere
Better than local, non-interoperable solutions that limit choice
Transactions

21. ? Aadhaar accepted as KYC for… LPG Connections Mobile connections1
Mobile connections 2
Bank A/Cs, Insurance, etc. 3 ?
State Government Services 4
Train Travel 6 5
Many other services…

22. Aadhaar e-KYC Service
“Instant” Opening of Bank Account through a Micro-ATM based on Aadhaar authentication – hugely empowering to the unbanked
The Aadhaar e-KYC service instantaneously provides basic data (name, address, date of birth, gender, photograph) of the beneficiary to the Bank upon successful Aadhaar authentication.
The e-KYC service can scale up to lakhs of transactions on a daily basis
Provides convenience to the unbanked. Enables opening of large number of bank accounts on scale.
Ram goes to withdraw cash
Explain MicroATM
TransferMoney txn, with fingerprint to merchant bank
NPCI authenticates the resident using UID, gets bank account using the ID mapper
Executes the debit and credit transaction
Sends SMS to resident and BC about debit and credit respectively
BC gives resident the cash.
Any Bank, Any Mobile, Any BC – no hardwiring of components or vendors – thru UID higher level of abstraction
MicroATM can perform all txns - Can perform deposits and C2C transfers as well.

23. Direct Benefit Transfer and Aadhaar

24. All direct cash transfers into one account
Multiple
Schemes
Aadhaar Payments Bridge
One
Aadhaar
linked
account
APB Compatible with CPSMS

25. End-to-End Direct Benefit Transfer Enabled by Aadhaar
Pension
Bank
xxxcccc
Radha
2. Aadhaar as KYC to open bank account
MGNREGA
xxxxx
yyyyy
Radha
Aadhaar Payment Bridge
Scholarship
3. Aadhaar as a payment
destination
- Bank Account portability
- Many schemes, one Aadhaar linked
bank account
xxxxx
Radha
4. Withdraw from any MicroATM – Choice and Convenience
1. Aadhaar to
de-duplicate databases
5. Auditability and traceability of transaction

26. Micro-ATM transactions
Handheld device and battery powered
Online connectivity through mobile network
Micro-ATM standards set by RBI and IBA (manufactured by multiple vendors)
Biometric scanners are certified
Interoperable devices and can work for any bank and any BC
Total online transaction time less than 15 seconds –
Verified on the ground from Tripura, Jharkhand, Maharashtra, and Andhra Pradesh

27. Convenient cash withdrawal
Ram’s bank account
Resident
8. Inform: Call / SMS
5. Authorize
6. Debit
1. Withdrawal request
9. Cash
4. Authenticate
Interoperable Switch
UIDAI
3. Forward to switch
7. Credit
Ram goes to withdraw cash
Explain MicroATM
TransferMoneytxn, with fingerprint to merchant bank
NPCI authenticates the resident using UID, gets bank account using the ID mapper
Executes the debit and credit transaction
Sends SMS to resident and BC about debit and credit respectively
BC gives resident the cash.
Any Bank, Any Mobile, Any BC – no hardwiring of components or vendors – thru UID higher level of abstraction
MicroATM can perform all txns - Can perform deposits and C2C transfers as well.
2. AADHAAR number, money transfer instruction, biometrics
BC’s bank account
BC with Micro-ATM

28. Inclusive convenience banking
ID mapper
Any Bank
Resident - Ram
UID
8. Info- IVRS/ SMS
6. Debit
Any amount
4. Authenticate and execute
Ram’s bank a/c
1. Withdrawal request
NPCI switch
5. Authenticate
Any micro-ATM
7. Credit
9. Cash
TransferMoney
From UID
To UID
Amount 300
3.NPCI request
Any BC
2. Money transfer instruction + biometrics
BC (Kirana, SHG, PO etc))
With Micro-ATM
UID:
BC’s bank a/c

29. Components of the benefit transfer system
One-time steps:
Aadhaar enrolment
Bank accounts for every beneficiary and Aadhaar linkage
Digitisation and Aadhaar seeding of beneficiary lists
Aadhaar e-KYC service
Recurring steps:
Aadhaar Payments Bridge
On-line authentication service
Interoperable cash withdrawal points

30. Concerns and responses

31. Concerns and responses
Exclusion/Denial of Services
Focussed enrolment of beneficiaries of schemes
Phased Migration to Aadhaar depending on percentage of Aadhaar coverage. In transition phase, no denial of service due to lack of Aadhaar. Adequate measures to get enrolled – Special camps etc.
Biometric Exceptions
Authentication – Various modes as well as manual override
Replaces Public provisioning
Aadhaar and Aadhaar enabled direct benefit transfer is only a platform to transfer benefits. It supplements rather than supplants public provisioning and does not necessarily replace it. Strengthens public provisioning by increasing auditability and transparency
High Costs
The costs compared to the savings (cutting leakages and corruption) to government justifies the project
Detailed cost benefit analysis undertaken
Total expenditure upto January 2013 is Rs.2369 crore. All expenditure on UIDAI website.
Authentication cost would be minimal.

32. Not pre-requisite for DBT
Essential for traceable and auditable DBT
Aadhaar serves the purpose of de-duplication, sufficient KYC, a financial address as well as convenient interoperable way of withdrawing money
Technology untested
Largest biometric database in the world
Biometric accuracy of a dataset of more than 8 crore residents conducted
Iris and fingerprint technology together provide a high degree of accuracy
Biometric exceptions
Privacy of Data
Minimal demographic data collected
Only yes/no response for authentication – no transaction data
Sufficient data security practices in place – encryption, anonymization of data
Need for Data Privacy law

33. Issues on the legal status of the UIDAI
UIDAI functioning under executive notification issued in January 2009 by Planning Commission
Functioning of Authority under executive notification valid under law
NIDIA Bill is to strengthen the Authority by giving it a statutory status in order to impose certain obligations and impose penalties

34. To conclude…
The Aadhaar number is a form of empowerment to those who had no proof of formal identity
Empowerment is achieved by providing access, choice, empowerment and convenience
Government spends large amounts on social welfare programmes

35. Obligation on State to have the capacity to ensure effective implementation as well as reduce leakage and corruption.
The expenditure should reach the intended beneficiary
The Aadhaar project is one of the means by which efficient delivery of service and inclusion with access can be enhanced. Not a panacea for all issues of corruption.
Large technology projects have costs and risks but the public benefit far outweigh potential risk

36. Thank You