Effective Mobile and Aadhaar Usage Will Help in Providing Safe Pension Services

UIDAI CEO Saurabh Garg believes that mobile and Aadhaar can effectively provide retirement and insurance-related services in a hassle-free manner. With the help of the JAM trinity, i.e. Jan Dhan, Aadhaar and mobile, several benefits are being rendered via 300 government services.JAM trinity has registered 773 crore transactions in FY 21. JAM trinity comprises more than 300 schemes; it has helped deliver benefits to people securely and transparently.

Aadhaar as identification cannot be lost, stolen, or destroyed; hence with time, it is gaining more acceptance across the nation. Aadhaar’s capacity to render all included and verifiable KYC makes it an essential component amidst the financial sector.

Amongst the banking sector, around 73 crore out of 124 to 125 crore Aadhaar cards have been linked to a bank account. Around 120 crore accounts out of the 140 crore bank accounts are linked with Aadhaar highlighting the growth concerning the Aadhaar payment bridge and the Aadhaar Enabled Payment System (AEPS). FY20 witnessed 236 crore AEPS transactions; it increased by 66% in FY21 with 392 crore transactions. 

Direct cash transfers have been another classic example of how Aadhaar has been helpful in rendering efficiency and transparency. Aadhaar has helped in identifying leakages within the government schemes. Aadhaar has helped in saving around Rs 1.80 lakh crore in the last 4 to 5 years in flagship schemes such as the Public Distribution System (PDS) PDS, PM Kisan and LPG subsidy.

UIDAI CEO Saurabh Garg mentioned that with the increasing Aadhaar penetration and usage of mobiles, the combination of Aadhaar and mobile might work for investment, pension and insurance categories. UIDAI is performing four crore authentications in a single day; this includes several kinds of authentications such as KYC, e-sign, etc.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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