E - COMMERCE
UIDAI AADHAAR CARD
G2C BUSINESS
DEEPALI PANDIT AND SHIVAM KHARWAL
BFT -V
TABLE OF CONTENTS
1. Executive Summary
2. Introduction
3. Background
4. The Vision
5. Mission Statement
6. Budget, Cost and Benefits
7. Aapka Aadhaar
8. Aadhaar Usage
9. Features of the UIDAI Model
10. Benefits of the UIDAI Model
11. The Revenue Model
12. Impediments
13. Conclusion
EXECUTIVE SUMMARY
This report provides an analysis and description of government department offering
services online along with the comparison of the traditional way of accessing to
those services by the customer and accessing the same online. The analysis includes
a description of the range of services being provided by the site; along with the
description and explanation of the key aspects or criteria in evaluating the
traditional and online services in the context of economy and social structure of
India. The main focus is on systematic analysis of what the site offers, using the
evaluation criteria and comparison with physical means.
INTRODUCTION
E-Government is digital interactions between a government and citizens (G2C),
government and businesses/Commerce (G2B), government and employees (G2E),
and also between government and governments /agencies (G2G). Essentially, the eGovernment delivery models can be briefly summed up as
G2C (Government to Citizens)
G2B (Government to Businesses)
G2E (Government to Employees)
G2G (Government to Governments)
C2G (Citizens to Governments)
E-Government essentially refers to the utilization of IT and other web-based
telecommunication technologies to improve and/or enhance on the efficiency and
effectiveness of service delivery in the public sector.
Government-to-Citizen or Government-to-Consumer (G2C)
The G2C model applies the strategy of Customer Relationship Management
(CRM) with business concept.
By managing their customer (citizen) relationship, the business
(government) can provide the needed products and services fulfil the needs
from customer (citizen).
Within their interaction, four kinds of activities take place
Pushing information over the Internet, e.g.: regulatory services, general
holidays, public hearing schedules, issue briefs, notifications, etc.
Two-way communications between the agency and the citizen, a business, or
another government agency. In this model, users can engage in dialogue with
agencies and post problems, comments, or requests to the agency.
Conducting transactions, e.g.: lodging tax returns, applying for services and
grants.
Governance, e.g.: To enable the citizen transition from passive information
access to active citizen participation by:
1.
2.
3.
4.
Informing the citizen
Representing the citizen
Consulting the citizen
Involving the citizen
BACKGROUND
The Unique Identification Authority of India (UIDAI), is an agency of
the Government of India responsible for implementing the AADHAAR scheme, a
unique identification project. The agency, which enjoys no legal backing, was
established in February 2009, and will own and operate the Unique Identification
Number database.
The agency aims to provide a unique identification number to all residents in India,
but not identity cards.
The agency will maintain a database of residents containing biometric and other
data, and is headed by a chairman, who holds a cabinet rank. The UIDAI is part of the
Planning Commission of India. Nandan Nilekani, was appointed as the first
Chairman of the authority in June 2009.
Nandan Nileknai, Chairman of UIDAI
The Vision
To empower residents of India with a unique identity and a digital platform to
authenticate anytime, anywhere
Mission Statement
Deliver Aadhaar numbers to over 60 Cr residents by 2014 with a well-defined
turnaround time and adhering to stringent quality metrics Collaborate with
partners to setup infrastructure which provides convenience to residents for
updating and authenticating their digital identity. Collaborate with partners and
service providers in leveraging Aadhaar to serve residents effectively, efficiently and
equitably
Encourage innovation and provide a platform for public and private agencies to
develop Aadhaar linked applications Ensure availability, scalability and resilience of
the technology infrastructure. Build a long term sustainable organization to carry
forward the vision and values of the UIDAI. Make it attractive for the best global
expertise in different fields to collaborate and provide valuable insights to the UIDAI
organization.
Budget, Cost and Benefits
About Rs. 35 billion (Rs.3500 crore) has been spent totally on Aadhaar program
from beginning (January-2009) till September-2013 with enrollment of 500 million
(50 crore) persons. It includes operating costs as well as capital expenditure
(infrastructure of land, building, and machinery).
AAPKA AADHAAR
Aadhaar is a 12 digit individual identification number issued by the Unique
Identification Authority of India on behalf of the Government of India. This number
will serve as a proof of identity and address, anywhere in India. Any individual,
irrespective of age and gender, who is a resident in India and satisfies the
verification process laid down by the UIDAI, can enroll for Aadhaar.
Sample Aadhaar Card
Each individual needs to enroll only once which is free of cost. Each Aadhaar
number will be unique to an individual and will remain valid for life. Aadhaar
number will help you provide access to services like banking, mobile phone
connections and other Govt. and Non-Govt. services in due course.
Aadhaar will be:
Easily verifiable in an online, cost-effective way
Unique and robust enough to eliminate the large number of duplicate and fake
identities in government and private databases
A random number generated, devoid of any classification based on caste, creed,
religion and geography
Aadhaar Usage:
UIDAI Know Your Residence (KYR) suffices for Know Your Customer (KYC):
Banks in India are required to follow customer identification procedures while
opening new accounts, to reduce the risk of fraud and money laundering. The strong
authentication that the UIDAI will offer, combined with its KYR standards, can
remove the need for such individual KYC by banks for basic, no-frills accounts. It will
thus vastly reduce the documentation the poor are required to produce for a bank
account, and significantly bring down KYC costs for banks.
Ubiquitous BC network and BC choice: The UIDAI's clear authentication and
verification processes will allow banks to network with village-based BC's such as
self-help groups and kirana stores. Customers will be able to withdraw money and
make deposits at the local BC. Multiple BC's at the local level will also give
customers a choice of BC's. This will make customers, particularly in villages, less
vulnerable to local power structures, and lower the risk of being exploited by BC's.
A high-volume, low-cost revenue approach: The UIDAI will mitigate the high
customer acquisition costs, high transaction costs and fixed IT costs that we now
face in bringing bank accounts to the poor.
Electronic transactions: The UIDAI's authentication processes will allow banks to
verify poor residents both in person and remotely. Rural residents will be able to
transact electronically with each other as well as with individuals and firms outside
the village. This will reduce their dependence on cash, and lower costs for
transactions. Once a general purpose Aadhaar-enabled micropayments system is in
place, a variety of other financial instruments such as micro-credit, micro-insurance,
micro-pensions, and micro-mutual funds can be implemented on top of this
payments system
FEATURES OF THE UIDAI MODEL
UID will only provide identity: The UIDAI's purview will be limited to the issue of
unique identification numbers linked to a person's demographic and biometric
information. The UID will only guarantee identity, not rights, benefits or
entitlements.
UID will prove identity, not citizenship: All residents in the country can be issued
a unique ID. The UID is proof of identity and does not confer citizenship.
A pro-poor approach: The UIDAI envisions full enrolment of residents, with a focus
on enrolling India's poor and underprivileged communities. The Registrars that the
UIDAI plans to partner with the NREGA, RSBY, and PDS will help bring large
numbers of the poor and underprivileged into the UID system. The UID method of
authentication will also improve service delivery for the poor.
Enrolment of residents with proper verification: Existing identity databases in
India are fraught with problems of fraud and duplicate/ghost beneficiaries. To
prevent this from seeping into the UIDAI database, the UIDAI plans to enroll
residents into its database with proper verification of their demographic and
biometric information. This will ensure that the data collected is clean from the start
of the program. However, much of the poor and underserved population lack
identity documents and the UID may be the first form of identification they have
access to. The UIDAI will ensure that the Know Your Resident (KYR) standards don't
become a barrier for enrolling the poor, and will devise suitable procedures to
ensure their inclusion without compromising the integrity of the data.
A Partnership Model: The UIDAI approach leverages the existing infrastructure of
government and private agencies across India. The UIDAI will be the regulatory
authority managing a Central Identities Data Repository (CIDR), which will issue
UIDs, update resident information, and authenticate the identity of residents as
required. In addition, the UIDAI will partner with agencies such as central and state
departments and private sector agencies who will be 'Registrars' for the UIDAI.
Registrars will process UID applications, and connect to the CIDR to de-duplicate
resident information and receive UID numbers. These Registrars can either be
enrollers, or will appoint agencies as enrollers, who will interface with people
seeking UID numbers. The Authority will also partner with service providers for
authentication.
The UIDAI will emphasize a flexible model for Registrars: The Registrars will
retain significant flexibility in their processes, including issuing cards, pricing,
expanding KYR (Know Your Resident) verification, collecting demographic data on
residents for their specific requirements and in authentication. The UIDAI will
provide standards to enable Registrars maintain uniformity in collecting certain
demographic and biometric information, and in basic KYR. These standards have
been finalized by the Demographic Data Standards and Verification Procedures
Committee and Biometric Standards Committees which was constituted by the
UIDAI constituted
Enrolment will not be mandated: The UIDAI approach will be a demand-driven
one, where the benefits and services that are linked to the UID will ensure demand
for the number. This will not however, preclude governments or Registrars from
mandating enrolment.
The UIDAI will issue a number, not a card: The UIDAI's role is limited to issuing
the number. This Number may be printed on the document/card that is issued by
the Registrar.
The number will not contain intelligence: Loading intelligence into identity
numbers makes them susceptible to fraud and theft. The UID will be a random
number.
The UIDAI will only collect basic information on the resident based on the
following:
1)
2)
3)
4)
5)
6)
7)
8)
Name
Date of birth
Gender
Father's/Husband's/ Guardian's name and UID number(optional for adult
residents)
Mother's/ Wife's/ Guardian's name and UID number(optional for adult
residents)
Introducer's name and UID number( in case of lack of documents)
Address
All ten fingerprints, photograph and both iris scans
Process to ensure no duplicates: Registrars will send the applicant's data to the
CIDR for de-duplication. The CIDR will perform a search on key demographic fields
and on the biometrics for each new enrolment, to ensure that no duplicates exist.
The incentives in the UID system are aligned towards a self-cleaning mechanism.
The existing patchwork of multiple databases in India gives individuals the incentive
to provide different personal information to different agencies. Since de-duplication
in the UID system ensures that residents have only one chance to be in the database,
individuals will provide accurate data. This incentive will become especially
powerful as benefits and entitlements are linked to UID.
Online Authentication: The UIDAI will offer a strong form of online authentication,
where agencies can compare demographic and biometric information of the
resident with the record stored in the central database. The Authority will support
Registrars and agencies in adopting the UID authentication process, and will help
define the infrastructure and processes they need.
The UIDAI will not share resident data: The UIDAI envisions a balance between
'privacy and purpose' when it comes to the information it collects on residents. The
agencies may store the information of residents they enroll if they are authorized to
do so, but they will not have access to the information in the UID database. The
UIDAI will answer requests to authenticate identity only through a 'Yes' or 'No'
response.
BENEFITS
For Residents: The UID will become the single source of identity verification. Once
residents enroll, they can use the number multiple times they would be spared the
hassle of repeatedly providing supporting identity documents each time they wish
to access services such as obtaining a bank account, passport, driving license, and so
on. The UID will also give migrants mobility of identity.
For Registrars and Enrollers: The UIDAI will only enroll residents after deduplicating their records. This will help Registrars clean out duplicates from their
databases, enabling significant efficiencies and cost savings. For Registrars focused
on cost, the UIDAI's verification processes will ensure lower KYR costs. For
Registrars focused on social goals, a reliable identification number will enable them
to broaden their reach into groups that till now, have been difficult to authenticate.
The strong authentication that the UID number offers will improve services, leading
to better resident satisfaction.
For Government: Eliminating duplication under various schemes is expected to
save substantial money for the government exchequer. It will also provide
governments with accurate data on residents, enable direct benefit programs, and
allow government departments to coordinate investments and share information.
THE REVENUE MODEL
By providing identity authentication, the UIDAI will be taking on a process that costs
agencies and service providers hundreds of crores every year. The Authority will
evolve suitable policies on the issue of charging a fee for its authentication services,
which will offset its long-term costs. Registrars and service providers will also be
able to charge for the cards they issue residents with the UID number. Such pricing
will be within UIDAI guidelines. The UIDAI proposes to charge user companies Rs. 5
to verify each address, and Rs. 10 for every biometrics confirmation, once the
system is fully in place
The UIDAI may also explore the option of charging beneficiaries of the cards to
offset enrolment costs. The Authority estimates it may cost Rs. 20-25 to enroll each
resident, adding up to Rs. 3,000 crore. A physical verification of an address and
other information about an individual generally costs a company between Rs 100
and Rs 500. The basic identity confirmation will be provided free to firms, which
would merely generate a 'yes' or 'no' response to confirm the identity based on the
UID number, name and an additional parameter. This service could potentially be of
use to airlines to check in passengers.
IMPEDIMENTS
Supreme Court Judgment: The Supreme Court of India passed an Interim Order on
23-Sep-2013 that no public services such as LPG be denied to public due to lack of
Aadhaar.
Security Concerns: The AADHAAR number is not recognized as a legal proof of
residence due to the issues with the data protection. India's Intelligence
Bureau claims anyone with an Aadhaar number can introduce others without any
documentation to get the identity number, which makes it vulnerable to terrorism
and other issue.
Conclusion
The Aadhaar Card is inspired from the US Social Security Number but has not been as
successful as the SSN. Aadhaar is for all, but not everyone owns it due to the complex
procedure it follows. Registration fails due to some or the other error and in most cases,
the Card delivery is delayed. Also, not all companies have integrated the use of Aadhaar
in their systems so general transactions are still independent of its use making it almost of
no use.
