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Aadhaar : Possible Applications

Proof of Identity
Potential Benefits
The Aadhaar number would provide proof of identity to every resident including migrants, homeless people, etc.  The number is unique to each individual and a person’s biometric information is linked to it.  This could facilitate access to various services, which need identity proof.

Remarks
Presently, various identity cards such as PAN card, voter’s identity card, ration card etc are accepted as proof of identity.  About 82% of the adult population have the election card, 74% of the population have ration cards and 38% of the population have Rashtriya Swasthya Bima Yojana card. 

Public Distribution System
Potential Benefits
The Aadhaar number can eliminate duplicate cards and cards for non-existent persons (estimated to be about 17% of all cards).  It could also reduce diversion at Fair Price Shops by ensuring that goods are distributed to the beneficiaries only after their biometrics are verified.

Remarks
UID cannot address errors in targeting of Below Poverty Line (BPL) families.  Some estimates suggest that about 61% of the eligible population is excluded from the BPL lists while 25% of the non-poor household are included in the BPL list.

Financial Inclusion
Potential Benefits
RBI has declared Aadhaar to be sufficient proof of identity to open a bank account.  It could also facilitate authentication with Business Correspondents in remote areas.

Remarks
Currently, 41% of the adult population do not have bank accounts. 

National Rural Employment Guarantee Act, 2005 
Potential Benefits
It would be possible to identify duplicate and fake beneficiaries of NREGA. 

Remarks 
UID cannot address other problems of NREGA such as incorrect measurement of work, payment delays etc.


Courtesy: PRS India
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