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12584 - Identity or not? The importance of being Aadhaar - Money Control

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The 12-digit unique identity number was the talk of the town in 2017 and it will only grow further in the next year.
Moneycontrol News


If the BJP spread its wings across India, gaining a foothold in 19 states by December, the government agencies too made many attempts to entrench Aadhaar into the common man's life through the year.

The unique identification number gained importance quite prolifically through the year and will likely be a point of many a debate in 2018. From bank accounts to SIM cards, passports to PAN cards, many services will need to be linked to Aadhaar by March 31, 2018, as per government orders.

The government's push is based on the assumption that Aadhaar — perhaps the most detailed proof of identity issued to an Indian citizen by the government — could be used to identify and track any wrongdoing in the services.

The process of Aadhaar registration involves capturing biometrics like fingerprints and iris scan. Therefore, Aadhaar used by the person to avail services and can act as a security measure simultaneously, given that it is very difficult to duplicate.

Nowadays, Aadhaar-enabled entry to airports is being promoted around the country. Linking Aadhaar database to an airport's system quickens check-in process cutting down on long queues, not to mention does away with manual verification of a person's identity. A fingerprint scan for check-in and security verification — killing two birds with one stone, isn't it?

Also, it has now compulsory to provide Aadhaar for passport application. The government has many a time hinted at using Aadhaar as one-stop shop for ID checks, be it date of birth, address or a photo ID.


Airports are not the only ones encouraging passengers to provide their Aadhaar. Indian Railways is promoting the use of the biometric proof of identity in its own way. If the passengers provide their Aadhaar number, they can avail concessions if they face any difficulties during the journey.

In the financial services space, Aadhaar has become compulsory for a person looking to apply for a PAN card. For those who already have PAN cards, it is mandatory to link their Aadhaar with their PAN so that the tax department can keep an eye on a person's tax filings.

Even bank accounts and mutual funds have to be linked to Aadhaar by the end of March 2018. This was made compulsory with a view to keeping an eye on all financial activity to prevent incidents of money-laundering.

A similar move was made in the telecom space, where it became mandatory for all to link their SIM cards with their Aadhaar. Earlier, all one needed to do to get a SIM card was provide a local proof of address because of which a lot of people just asked local acquaintances to obtain one of them. 

The loophole made it extremely cumbersome for the government to keep track of a SIM user to determine his/her involvement in any criminal activity.

However, after Aadhaar is linked to very SIM card in the country, it would become relatively easy for the authorities to pinpoint any blip on their radar. Also, there is no limit on how many SIM cards can be linked to one Aadhaar.
Aadhaar has also evolved over the year and is now being used as a mode of cashless payment through the Aadhaar Enabled Payment System (AEPS).

AEPS helps Aadhaar holders make payments by providing biometrics and/or UID number.

The 12-digit number has also become necessary for one to avail certain social services like government subsidies, gas cylinder subscriptions and midday meals, among others.
Ration card holders are required to link their Aadhaar to the card in order to avail benefits of the Public Distribution System.
All these developments came about over the last 12 months. A year ago, one could make do without an Aadhaar, but going ahead, it will likely be the most important proof of identity.
Although it was introduced quite a while back, it was not until 2017 that Aadhaar actually became what it was always intended to be.

Going by what the history books tell us, it took Franklin D Roosevelt government in the United States a while to convince Americans that the New Deal, and particularly social security, was good for them.

Today, social security continues to define life in the US and goes a long way in making sure that Americans are never found wanting for basic needs at least.

Aadhaar is a similar concept, and as some experts have pointed out, has the advantage of being conceptualized in today's day and age, and thereby addressing today's issues to a far greater extent.

It is slowly seeping into every aspect of our life. There have been discussions over linking Aadhaar with voter IDs as well but it is unclear if it is mandatory to do so.

And if one thought the government's March 31, 2018 deadline puts the furore around Aadhaar to rest, there may be one more in the offing. Facebook has confirmed that it is piloting a  service which lets new users sign-up with usernames same as that on Aadhaar.


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