#theswamy

[aadhaar101-blog]

Understanding Aadhaar - for the rest of us!

One of the biggest impact projects being undertaken in India is the UID or Aadhaar initiative - while it was initially conceived to improve benefits administration, the fact of the matter is that the architecture of Aadhaar makes it an enabler not just for benefits administration, but also fundamental infrastructure for the future of any and all services in the country.

I’ve noticed that a lot of the discussion is driven by opinion and pre-conceived notions/concerns and a lack of proper understanding of Aadhaar – I‘ve written this FAQ so people can better understand Aadhaar, and make better judgements – most of these questions stem from conversations I’ve had with people. 

Disclaimers: I have worked with the Aadhaar team. I am not attempting to be legally correct. 

1. What is Aadhaar?

Aadhaar is a 12-digit Unique Number for each individual. Simply put, it allows all residents of India to get enrolled into a system and get an Identity Number that can then be used for life to avail services across the country.

2. Is this only for people receiving Government Benefits?

NO – Absolutely Not. Aadhaar is for everyone. For people receiving Government Benefits, it may be more important and useful. There is no restriction to the types of service providers (eg. Banks, Telcos, Insurance Companies, Employers or even individuals) who want to use Aadhaar.

3. Why another ID Card?

Today nobody has an ID card – what we have are entitlements. A Drivers License is an entitlement to drive, a Voter Registration card is an entitlement to Vote, A Ration card is an entitlement to discounted groceries, a Passport is really a travel document – the list goes on and on – but nearly all ID cards that we currently have are really entitlements of one facility or another.

On the other hand, Aadhaar is merely a proof of IDENTITY. My Aadhaar “card” (will explain later why the notion of a card is foreign to Aadhaar) merely says I am “XYZ” – nothing more, nothing less.

4. If I already have an ID, should I get an Aadhaar Number? 


Aadhaar is intended to be the minimum verification of ID and Address – and the ONE common ID to be used across ALL service providers. This includes banks, insurance companies, telecom operators, passport office, voter registration, gas and other utilities, Drivers License, etc. Private sector companies can also use this for employee verification etc. 
In full flow, it should allow all services to be accessible uniformly to all residents without any friction – ACROSS the country – irrespective of where you first enrolled for Aadhaar.

5. Will I get a Card? 


Nope – Aadhaar is only a letter! Integrity of the data is only verified online – through an open Web API. You can print out your Aadhaar letter online any number of times – but fundamentally the authenticity of the letter is only verifiable online.

6. What is the enrollment process? 


Any approved enrollment agency can be visited to enroll into the system. The enrollment captures a lot of information – ONCE – subsequently you never have to provide this information except for example if you are changing your address/phone number or gender! 


7. What information is required? 


Aadhaar captures ONLY the following information:

Demographic data - Name, Address, Date of Birth, Gender, Phone Number, Email 
Address

Documentation - if available a copy of any existing Proof Of Identity & Address, if not a letter of introduction

All 10 fingerprints and 2 IRIS scans – this is essential as this 
establishes your “Uniqueness” in the system 


8. What happens when I enroll? 


Once you enroll, your data is processed electronically at the UIDAI’s secure datacenters, and subsequently a 12-digit number is issued. Once you are notified, you can print out your Aadhaar letter – or receive a letter in the mail.

Once your data has been sent to UIDAI, it will NEVER be released to anyone without your explicit consent – the exception to this might be law enforcement with proper procedures.

9. Who controls the data?

Aadhaar is designed such that residents control their data - nobody has access to your data without your approval. For the most part, Aadhaar is an identity verification service – you provide information to the service provider who in turn can verify it online instantaneously.

In a few exceptional cases such as opening of a bank account (eKYC), post resident authentication and resident’s explicit approval, your demographic data and photo will be released to the service provider – such as a bank.

The one exception is for law enforcement purposes.

10. Who is eligible for Aadhaar?

Any and ALL residents of India – temporary or permanent – are eligible. This includes Indian nationals, people without any identity document, foreigners living in India, etc.

Foreigners legally residing in India are also eligible for Aadhaar. However if they do not have any Indian Government issued ID, they will be required to produce additional documentation – such as a Visa, and rental or other proof of address.

It is important to note here that Aadhaar isn't an entitlement for Citizenship - it is merely a proof of ID.

Those residing in India illegally are NOT eligible for Aadhaar!

11. What if someone has no ID document as yet?

If you have no ID, then you are still eligible for Aadhaar – you will need an introduction typically from someone who has an Aadhaar number.

12. What happens if I change my address?

All demographic data can technically be changed, except perhaps Date of Birth & Gender. One will need to visit an Aadhaar update center (typically a post office) and update their address. In certain cases, demographic data can be updated on the Internet - in this case the Aadhaar system will send you a One Time Password (OTP) on your registered Mobile Phone - once you confirm the OTP your information can be updated. 

13. How many Aadhaar Numbers have been issued?

To date more than 500 Million people have been issued Aadhaar numbers – and very soon if you don’t have an Aadhaar number, you will be in a minority group!

14. Can I get more than one Aadhaar Number?

No – under no circumstances can you get more than one Aadhaar Number – this is a fundamental difference between this and ANY other system in the country. It is one number for life. Even if you go to another corner of the country and enroll under a different name, your Aadhaar Number will not be generated because your biometrics will match a previous registration.

15. Is it important to share my Mobile Number with UIDAI?

It is ideal to share your mobile number with UIDAI - and strongly recommended you do not share a common mobile number with the rest of your family.

The Mobile Number is used for verification by One Time Password wherever allowed and over time is expected to become one of the most commonly used. If you have not given your correct Mobile Number to UIDAI, you should update the number to get all the benefits of Aadhaar.

16. What happens when I cease to exist?

Your Aadhaar number will never be re-used – even post your existence.

Now that we’ve covered how Aadhaar is obtained and managed, now let’s discuss how we can use Aadhaar. I’m taking a simple scenario of opening a bank account as an example and comparing it to what we do today.

Today (without Aadhaar)

Visit a bank

Fill out an account opening form – typically Name, Address, DOB, Gender, Phone#, Photo, etc.

Submit documents for Proof of ID and Proof of Address

Bank/Telco has to verify all submitted documents

Account is opened

Tomorrow (With Aadhaar e-KYC)

Visit a bank with an Aadhaar certified biometric terminal (basically a mobile phone or a tablet or a PC with a fingerprint scanner and an Internet connection).

Type in your 12-digit Aadhaar number and put your finger on the fingerprint scanner.

Your fingerprint is encrypted and sent to the UIDAI servers for verification

If your fingerprint matches the fingerprint provided at time of enrollment, you are successfully authenticated, and your demographic data and photograph are released to the bank.

If your fingerprint does not match, the system will simply say “Authentication Failed - fingerprint and Aadhaar Number do not match. In such cases, no data will be returned to the bank.

The Account may now be immediately opened by the bank or telco.

Some key points to note:

Your information is ONLY released by UIDAI to the bank upon successful authentication with your fingerprint – which means you are always required and in complete control. There is NEVER any issue with PRIVACY.

There is NO paper in the system – your documents, ID proof, Address proof, or photograph are never available in physical form and can never be reused as such. This actually avoids a huge risk of Privacy and often fraud.

There is a significant savings in time, accuracy and paper. There is no question of any spelling mistakes, inaccurate address, wrong phone number or wrong photograph being attached due to human error.

There is NO CARD required! Aadhaar identifies YOU, not your card or any other document! You can go to any part of the country – as long as you remember your Aadhaar number, you can open a bank account or get a mobile connection or whatever you need.

Last but not least, your biometric information is NEVER shared with the service provider. Biometrics are only sent to the UIDAI server and can never be intercepted or seen by any other party.

Aadhaar can also be used for several other activities – whether verification of ID with an employer or with a government service, etc. However the biggest point to note in all these cases is that your demographic data will NEVER be released unless you authorize it on a case by case basis, and in no cases will your fingerprints or IRIS scan ever be shared with anyone.

Once you understand Aadhaar, the uses and possibilities are endless - but in all cases, its important to understand there is never any risk to your privacy or information security.

I hope this document has clarified some of the popular concerns people raise about Aadhaar – please Tweet me (@theswamy) or post your comments and I’m happy to discuss.

[aadhaar102]

Cash Transfers Using Aadhaar!

People always wonder what Aadhaar has got to do with Cash Transfers - and specifically for LPG cylinders. The concept is really quite simple.

In India, the government gives all residents a rebate on LPG cylinders - the intent is to enable people to move from kerosene and other unhealthy methods of cooking to a cleaner and safer method - and not worrying about the incremental cost (if any). As such even though the market price for a cylinder is about Rs. 800, we pay Rs. 400.

However the intent and execution of the program has always led to significant leakages - and as a result the government has been looking for ways to continue to offer the benefit in a fair and efficient manner. In many cases people have multiple gas cylinders and there is no way to track how many cylinders they got the rebate for. The intent was to provide the rebate for up to 6 cylinders per year.

Enter Aadhaar - a way to ensure uniqueness. Since residents can only receive one Aadhaar number, it is simple to ensure that no one individual is getting the benefit multiple times. So by linking the Aadhaar number to the gas companies, one knows that a given resident only has one cylinder that qualifies for the benefit. One may have multiple cylinders against one's Aadhaar number - but the benefit can only be availed 6 times per year for that individual, not for each cylinder.

Administering the benefit has also been done intelligently - each resident now has a bank account linked to their Aadhaar number, and when they get a cylinder, the rebate is simply credited directly to the Aadhaar Linked Bank Account.

The vehicle of the Aadhaar Linked Bank Account is really clever - the user may change their bank account but doesn't need to inform the gas company - instead they just update the central system (run by the National Payments Corporation of India) with the new bank account details. ANd tomorrow if anyone else wants to also send you money, they can just send it to your Aadhaar number.

Cash transfers using the Aadhaar scheme have successfully impacted more than 30M registered users and it is more than likely that in future all rebates, insurance claims and other cash transfers (payroll, p2p money transfer etc.) can be administered in a safe and efficient manner using Aadhaar.

Almost anyone who deals with disbursing money to individuals will have a need for Aadhaar-based cash transfers. Send me your thoughts on where else it can be used.