Direct Benefit Transfer Using Aadhaar: Improving Transparency and Reducing Corruption

Direct Benefit Transfer Using Aadhaar: Improving Transparency and Reducing Corruption

Aashish Bhardwaj, Dale Cyphert
DOI: 10.4018/978-1-7998-1791-8.ch008
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This chapter illustrates how Aadhaar, India's unique identity number, has been used to develop applications such as direct benefit transfer and micro payment solutions that improve existing governmental processes and lead to economic development. This chapter details the Aadhaar success stories of Direct Benefit Transfer in removing corruption and implementing transparency. Successful applications include Pradhan Mantri Matru Vandana Yojana (PMMVJ), State Health Society (Bihar), Aadhaar Enabled Payment System (AePS), Nutrition and Health Tracking System (NHTS), Aadhaar Enabled Public Distribution System (AePDS), and Adhaar Enabled Fertilizer Distribution System (AeFDS). Specific process improvement case studies illustrate purchasing new SIM cards and land transfer to support the authentication and removing fake entries. The chapter addresses administrative technology and legal challenges, which the initiative faced during its implementation.

Key Terms in this Chapter

LPG: Liquefied Petroleum Gas is a flammable mixture of hydrocarbon gases used as a fuel for cooking utensils, vehicles and heating appliances.

IBA: Indian Bank Association is a representative body for managing banking in India which includes all private, public and foreign banks operating in country.

GST: Goods and Services Tax is an indirect tax imposed in India which is comprehensive and has subsumed almost all other indirect taxes.

SMS: Short Messaging Systemis a text messaging service of most telephone, mobile and internet devices using standardized protocols.

API: Application Programming Interface in any defined inter-program interface for applications like web, atmospheric, analytical etc.

MeghRaj Cloud: Is an initiative of Government of India which offers variety of service models like IaaS, PaaS, SaaS for optimal utilization of infrastructure.

Aadhaar: It is 12-digit unique identification number issued to every citizen of India which will help in forming a digital identity.

NSAP: National Social Assistance Programme is a scheme that provides financial assistance to elderly, widows and disability persons in form of social pensions.

Digital Identity: It refers to the traits, attributes and preferences on which one may receive personalized services.

AePS: Aadhaar enabled Payment System enables for cashless transactions by using Aadhaar number and fingerprint for withdrawal and deposition of money.

Identity: It is an individual’s condition of oneself, itself, not another and is transmitted in digital form for establishing trust.

Aadhaar API: It is an Application Programming Interface for enterprises for identity verification in products like Passport, VoterID, Driving License, PAN etc.

e-KYC: Electronic Know Your Customer is a paperless process of a business verifying identity of a client for potential risks in business relationship.

Cloud: A model for enabling users to unlimited access to resources like infrastructure, platform, software, database etc.

E-Governance: It is the application of information and communication technology for delivering government services, exchange of information and transactions.

e-Kranti: It is one of the nine pillars of Digital India program for delivering government services electronically to citizens in transparent and efficient manner.

GUN: Government User Network connects Union, State, District and local level official sites websites and has feature to customized content displayed.

ITES: Information Technology Enabled Services is defined as outsourcing of services that can be enabled through IT for finance, administration, human resource etc.

RBI: Reserve Bank of Indiais India’s central banking institution which controls supply of Indian rupee, regulate banks and provide financial services.

VSAT: Very Small Aperture Terminal is a satellite communication system which interfaces between computer and outside antenna with a transceiver.

NKN: National Knowledge Network is to interconnect all higher education institutions in India to facilitate knowledge sharing and collaborative research.

NOFN: National Optical Fibre Network is an initiative to establish broadband in rural areas by reaching all village panchayats.

AePDS: Aadhaar enabled Public Distribution System based on biometric authentication for distribution of food and non-food items at subsidized rate for beneficiaries.

Voter ID: It is an identity document issued by Election Commission of India to citizens who have attained age of 18 years and can participate at different elections.

NIC: National Informatics Centre is a premier organization for informatics services and information and communication technology applications.

SWAN: State Wide Area Network is a core infrastructure component of National eGovernance plan to create high speed connectivity for all state headquarters.

DietY: Department of Electronics and Information Technology have under taken UIDAI and Aadhaar project to promote eGovernance for empowering citizens.

PAHAL: It is a consumers Direct Benefits Transfer of LPG (DNTL) scheme which requires mandatory Aadhaar number seeding for availing subsidy.

UIDAI: Unique Identification Authority of India is an authority to empower citizens of India with a unique identity and a platform to authenticate anytime, anywhere.

AYUSH: Indian Ministry for Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy to develop and propagate this system of medicine and healthcare.

RC: A vehicle Registration Certificate is an official document providing proof of registration of vehicle on national vehicle register.

NPCI: National Payments Corporation of India is an organization for operating retail payments and settlement systems in India.

Pan: Permanent Account Number is a ten character alpha numeric number issued by Indian Income Tax department and serves as important proof of identification.

OTP: One Time Password is a dynamic password or one time pin valid for only one transaction on a computer system or digital device.

AeFDS: Aadhaar enabled Fertilizer Distribution System for farmers based on their land area, soil configuration, type of food grain, season at subsidized rates.

NHTS: Nutrition and Health Tracking System is implemented for reducing Infant Mortality Rate, Maternal Mortality ratio and malnutrition.

MSME: Micro Small and Medium Enterprises are classified in two categories i.e. manufacturing in plant & machinery and servicing in equipment.

PMMVJ: Pradhan Mantri Matru Vandana Yojna is a maternity benefit program which provides conditional cash transfer to pregnant and lactating women.

microATM: These are handheld point of sale terminals to disperse cash in remote locations where core bank branches can’t reach.

MGNREGS: Mahatma Gandhi National Rural Employment Act which guarantees 100 days of wage-employment in a financial year.

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