USE its various applications is leading to

USE OF BIOMETRIC ID-AADHAR CARD IN SUSTAINABLE DEVELOPMENT OF ECONOMY ABSTRACT:Aadhaar is a 12 digit unique identity number issuedto every single Indian occupant in view of their biometric and statisticinformation. The information is gathered by the Unique Identification Authorityof India (UIDAI), a statutory expert built up in January 2009 by the Governmentof India. Aadhaar is the world’s biggest biometric ID framework, with more than1.19 billion enlisted individuals starting at 30 Nov 2017, representing morethan 99% of Indians matured 18 or more.

World Bank Chief Economist Paul Romerdepicted Aadhaar as “the most sophisticated ID program on theplanet”. This paper highlights how this biometric id and how itsvarious applications is leading to strengthening of financial infrastructure byincreasing financial inclusion and reduction in financial frauds but is alsoleading to human capital development due to availability of more demographicinformation and by checking infiltration. It is acting as a catalyst indevelopment process and is paving way towards sustainable development of theeconomy. OBJECTIVES:Thispaper presents a brief review on Aadhaar card, and discusses the scope andadvantages of linking Aadhaar card to various systems.1.

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     Tostudy the relationship between Aadhar cards generation and financial inclusion.2.     Todetermine if there is any linkage between Aadhar card and infiltration and3.     Ifit is leading to sustainable development by strengthening financialinfrastructure and human capital METHODOLOGY:1.     Conductedliterature survey based on the various research articles, leading newspapers,case studies and the observations of Supreme Court of India.2.     Secondarydata obtained from UIDAI and other government sites has been used.3.

      Correlationhas been used to determine any relationship, if it exists. INTRODUCTION:The Unique Identification Authority of India(UIDAI) was set up by the Government of India in January 2009. The first set ofUID cards were issued in September 2010, by UIDAI which has been authorised toissue an Aadhaar number to all the residents of India with the followingvision: (a) tocreate a robust system which is capable enough to eliminate duplicate and fakeidentities, and (b) can be confirmed and validated in asimple and financially savvy way online anyplace, whenever. It   also aims (c) to facilitate smoothfunctioning of government schemes and programs. This 12-digit numberwhich is issued by the government as a proof of identity and residence in India,is verifiable by means ofbiometric identificationsystem which contains Demographic data that is, data about the person’s: Name,Address, Gender, Date of Birth, Relationship, Mobile Number and Email AndBiometric data which consists of data about the resident’s: face (photo), IRIS andFingerprints. FINANCIALINCLUSION:Anyorganisation whether it private or government cannot function effectively orefficiently without having information about its subjects. KYC (Know YourCustomer) is an example of how this information is being collected andverified.

In KYC, a person has to fill his personal information, demographicdetails etc and provide documents in support of the given details. Thedisadvantages of KYC are that it endeavours to record frauds, requires morehuman exertion, human obstruction, and less accessibility and so on. In orderto overcome this UIDAI started “Aadhaar e-KYC (Electronic-Know Your Customer)eService” in which KYC would be on its own be loaded with the details ofinterest via Aadhaar card.

The principle idea behind its execution is that itoffers biometric based validation which removes all the additional machineworks required to store and record all the biometric subtle details of aperson. The Income tax Department is likewise is considering- to issue PAN(Permanent Account Number) card on the premise of Aadhaar e-KYC. Truth be toldNSDL (National Securities Depositor Limited) and UTIITIL (UTI InfrastructureTechnology and Service Limited) are now giving Aadhaar e-KYC Services.  the Government of India has now announcedthat the Aadhaar card must be connected with the PAN card by 31 December, 2018and PAN card would be compulsory for inn charges above Rs.

50,000 and gems purchasedfor above Rs. 2,00,000. Likewise for citizens, it is obligatory to now linktheir Aadhaar cards with their respective PAN cards before July 1, 2018 else,their filings would be rejected.  Thearticle of Roy 21 gives a concise survey on how by connecting bank details withdemat accounts or record to frame a solitary record.  This application of biometric id that isAadhaar can be extended to essentially cover field all kinds of financial resourceslike provident Funds, pension plans and demat account etc. These money relatedresources of an individual can be consolidated into a one single unit with thelinkage to Aadhaar number. Connecting Aadhaar to every single financial assetin distinctive banks will help in easy access and verification process inbanking sector etc.Advantagesof this are that firstly, it saves time and money as the whole process is freeof cumbersome paperwork and human interference.

Another benefit of e-KYC isthat it ensures that money goes to right person only and pilferages have beenplugged.Aadharenabled payment: Year Total approved transaction in million 2012-13 0.2 13-14 11.15 14-15 16.37 15-16 95.04 16-17 344.84  The above table showstransaction done via Aadhar cards authentications and it can be concluded thatit grew by 3.

6% during past years.Source: npci,uidai  REDUCTIONIN FINANCIAL FRAUD:Firstly,there are numerous types of frauds in financial setup ranging from-1.      ATM frauds,2.      phishing ,3.

      pin cracking,4.      identity theft,5.      credit and debit card theft etc 6.

      tax evasion ,7.      money laundering etcAndsome facts related to these frauds are:1.     the value of trades executed on the Bombaystock exchange (bse) using fake or duplicate pan cards amounts to Rs 4,000crore.2.     Indians might have stashed us$ 181 billionworth black money in global tax havens.3.

     data security of nearly 32 lakh debit cardshas been at risk in atm’s etc 4.     There has been $3 billion loss in the last one year due to bankingfraud.5.     Monetary losses amounting to 948.

64 lakh due to credit card theftsin December 2012 . Keeping  the above facts in mind, Application ofAadhar cards in banking sector has been immensely beneficial as it helped inmitigating financial frauds like credit, identity and debit card theft etc. There has been $3billion loss in the last one year accounting to banking fraud. If every bankaccount is verified with Aadhaar then financial crimes can be mitigated as everyfraudster would endeavour to take out money from one account to another, butwhichever is the recipient account if that account is verified with Aadhaar, itcan be prevented.

Applicabilityof Biometrics in E-Banking 1)Biometrics for Online Banking: Many PC’s, cell phones etc have inbuilt webcamsand unique mark scanner features. These empower the banks to introduce thebiometric arrangement utilizing voice, for voice or face recognition, fingervein acknowledgment and so forth. Banks are currently offering unique markverification through mouse which enables the client to securely processtransactions etc over the web. 2) Biometrics in Branch Banking:  Since biometrics delivers quick results somost of the bank branches are using biometric arrangement with specific endgoals in order to reduce the human surge in branch.

 3) Biometrics in ATMs:  biometric authentication in banks will and isproviding outstanding benefits to both parties. 5) Additional Security & EffectivePassword Management: Biometric single sign on (SSO) removes the threat ofpassword hacking and loopholes thus providing a more secure system of securityto customer as well as bank.  Compulsory connection of the Aadhaarto Permanent Account Numbers (PAN) has helped the IT division get rid of copyPANs and decrease tax spillages. In similar manner, connecting financial bankaccounts to Aadhaar, they contend, will help bind tax evasion by means ofbenami exchanges. For the client, connecting the account gives immediate accessto the account through the Aadhaar-Enabled Payment System (AEPS).  Total savings in the last two years due tolinking of Aadhaar in beneficiary databases is more than $10 billion. It’s beenreported by Mr. A.

B. pandey  CEO of UIDAIthat if we connect all government programmes with Aadhaar then we can spare tothe tune of $10 billion per year. IT’S CONTRIBUTION IN HUMAN CAPITAL DEVELOPMENT:Aadhar card not only is helpful in building a better financialsystem by bringing in transparency as day by day all banks are linking Aadharcard with bank accounts of clients. It is also helping our human capitaldevelopment by providing better information about demography, their actualneeds and ensures that special training and education including skilldevelopment programs, targeted at the community is actually delivered to them.This has been shown in the diagram below where demographic authentication hasbeen plotted against months revealing an increase in correct information beingreceived by government.

Many institutions/ training organizations have beenexposed that were earlier claiming such subsidies/ aids on bogus names.Recently, after the introduction of Aadhar cards the HRD ministryhas identified around 80,000 ghost lectures in the educational sector. Suchcases are now noticeable.

Then in case of Scholastic Scholarships: To availscholarly grants and take other advantages, students are now required to give theirAadhaar cards along with the forms etc. By this, the administration has notonly strike out numerous phony people with fake degrees etc as the process isconnected with Aadhaar. It has been reported that many UGC grants have beenstopped of those people who weren’t eligible of the same due to this Aadhaarcard being incorporated.    Source: UIDAINot onlyin educational sector but otherwise also, Aadhaar cards have reunited around500 families in India due to increased biometric authentication and information.The above graph reveals thetrend and demographic informational increase.In mostrecent 2 years, because of Adhar card being connected to different records,  ? 3.3 crore “phantom”LPG associations blocked.  ? 87 lakh “phantom”occupation holders under MNREGA and comparative plans have been evacuated.

 ? 19 lakh “fake”accounts which were getting agricultural subsidy in Maharashtra alone werewiped out.  ? 8.2 lakh “ineligible”children who were selected for mid day meals have been removed.  ? About 80,000″apparition” instructors and teachers in schools and universities whowere drawing pay rates and ugc grants have been cleaned.  ? About 31 lakh”phantom” subsidy and ration cards have been wiped out after DBTbeing connected with Aadhar. CONCLUSION:Identity of a native in thewake of penetrations from neighbouring nations might be portrayed as the”missing connection” in India’s endeavours to ascend as a superpower.Aadhaar might be named as the innovation drive in the right direction.

The UID”Aadhaar” project has two unique features. The first is that it dealswith “national security” and the other one is its”formative” concern. Both the components are similarly imperative. So far the beneficiary ofadvantages- under different government supported plans required to build up hisidentity and qualification by delivering numerous records for confirmation. Thecheck of such records is finished by different specialists.

An Aadhaarempowered financial balance (account) can be utilized by the recipient to getnumerous welfare instalments rather than the one plan, one bank approach. Itcan be concluded after analysis that application of Aadhar cards will lead tofinancial inclusion as cost reduction leads to inclusion and Aadhar enables it.Aadhaar will not only to financial inclusion and social security but will alsohave positive effect on all fields.

Countries ranging from Bangladesh toTanzania are taking assistance from India to carry out a system like Aadhaar. Ouranalysis also supports this view point and suggests that it indeed is leadingto sustainable development which isn’t just about environment but includes wellbeing of factors like human capital and financial capital etc.   LITERATURE REVIEW:Chopra and Hamza, (2013) inferredthat UIDAI can, and will assume an extremely fundamental part in making moneyrelated consideration genuine and impactful. In any case, extensive front-endwork must be done, and numerous obstructions evacuated, before unbanked poorcan understand the effect. Shah andPandey (2015) featured that Aadhaar information is probably goingto make an enormous open door for customising services and administrative work andofferings. The findings of the paper entitled ‘A cost-benefitanalysis of Aadhaar’ published by The National Institute of public financesuggest that the benefits of the Aadhaar project will surpass the costs.Research by state of Aadhar by IDinsight , reveals that Aadhaar enabled paymentgateways and its applications will have a great impact on financial inclusion,social security , health care and educational sector but it has to overcomehindrances like security and encryption issues.

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