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| The '''Unique Identification Authority of India''' ('''UIDAI'''), is the government agency of ] |
The '''Unique Identification Authority of India''' ('''UIDAI'''), is the government agency of ]. It is responsible for assigning ] as ] of Identities. The UIDAI was established in January 2009.<ref>http://uidai.gov.in/</ref> The UIDAI functions under the ]. The head of the agency, Mr. ], is of cabinet minister rank. | ||
| The Unique Identification Authority of India functions under the Planning Commission. The head of the agency, currently ], is ranked equally to a cabinet minister. | |||
| ==Overview== | ==Overview== | ||
Revision as of 18:16, 17 November 2013
 UIDAI (Aadhaar UIDAI new logo) | |
| Agency overview | |
|---|---|
| Formed | January 2009 |
| Jurisdiction | Government of India (Union Government) |
| Headquarters | New Delhi |
| Agency executives |
|
| Website | uidai.gov.in |
The Unique Identification Authority of India (UIDAI), is the government agency of India. It is responsible for assigning national identification number as Registrar of Identities. The UIDAI was established in January 2009. The UIDAI functions under the Planning Commission of India. The head of the agency, Mr. Nandan Nilekani, is of cabinet minister rank.
Overview
UIDAI is the Registrar of Identities i.e. it registers, assigns and verifies the unique identities. It is supposed to register two types of unique identities:
- Residents of India (called Aadhaar)
- Corporate entities (Corporate-UID) for company, bank, NGO, trust, political party etc.
So far UIDAI has made progress on Aadhaar Number (AN) only. Work on Corporate-UID is yet to be published.
However, Corporate-UID has been provisioned within 12-digit UID number system. Corporate-UID is supposed to produce the similar effect as Aadhaar for corporate entities i.e. identification and traceability of transactions. It is supposed to bring transparency on financial transactions, donations; and to prevent corruption, money laundering, benami transactions (i.e. under a fictitious name), allocation of natural resources like land, spectrum, mining of sand, iron-ore, coal-blocks, etc. Similar identifier ISO 9362 (Business Identifier Code - BIC) exists for international business transactions (financial and non-financial).
UIDAI owns and operates the main database server called the Central Identity Data Repository (CIDR). Aadhaar enrollment commenced in September 2010.
Aadhaar serves the purpose if Aadhaar-holder verbally tells the AN and it gets instantly verified online at the point of service, through KYC or E-KYC process in a paperless way; which provides high reliability of identity. Only show of paper Aadhaar letter provides low reliability of identity as it can be easily faked.
Aadhaar program has already crossed the critical-mass as of 15-Aug-2013 by assigning 400 million AN and linking over 30 million bank accounts for Direct Benefit Transfer for various social security benefits across many states.
Half-a-billion AN will be assigned by end of November-2013. Half the population of India (600 million) will be assigned AN by March-2014. By 01-Jan-2014, half the population of India (289 districts across various states) will be covered under Aadhaar-DBT for various benefits.
Aadhaar program is the largest biometric database in the world. Currently it has 500 million people (5 billion fingerprints, 1 billion iris image, 500 million face photo) with 6 peta byte of data. It will reach 1.25 billion people in few years, 15 PB of data and over 200 trillion biometric matches per day.
Properties of AN
Aadhaar Number (AN) is a 12-digit national identification number assigned to residents of India for lifetime. Its format is 1234-5678-9012 where the 11-digits are used as a sequence and the rightmost 1-digit as an error detection check-sum. It is not a proof of citizenship. It only guarantees identity; not rights, benefits or entitlements. AN is a digital identity, instantly verifiable online at the point of service (PoS), at anytime, anywhere, in a paperless way. It is assigned only to humans, not to corporate entities like companies or non-governmental organisations, unlike the PAN card. The government expects that it will enable under-privileged people to access basic rights and social security benefits, which they have been deprived so far due to lack of identity.
AN is designed to enable government agencies to deliver retail public services securely based on biometric data (fingerprint, iris scan and face photo), along with demographic data (name, age, gender, address, parent/ spouse name, mobile phone number) of a person. AN is portable, free from limitations of physical presence of a person at a given place. Thus is can be used for casting vote from anywhere using mobile phone or personal computer, availing social security benefits from anywhere e.g. drawing PDS ration from any shop etc.
AN also works as a financial address, i.e. it works as a bank account number. This is designed to help spread low cost, ubiquitous, branchless banking services in rural areas - called micro-ATM, as part of the Financial Inclusion initiative.
AN is valid all over India as a proof of identity, age and address. It is immensely helpful to migrant workers for employment and social security benefits. In case of change of personal information (mobile number, residence), the same can be updated with proof at Aadhaar Kendra, the permanent field-office.
AN is stored in a centralized database (CIDR) and linked to the basic demographics and biometric information – photograph, ten finger-prints and both iris – of each individual. It is verifiable online with the database server (CIDR) instantaneously, at a low cost. It is portable and robust enough to identify duplicate and fake identities from government and private databases. It is a randomly generated number, is sparsely populated in the database, designed not to be guessable, with no associated intelligence, and no profiling information such as caste, creed, religion or language. Since Aadhaar uses 11-digit for sequence, therefore it has an address space of 10 (100 billion). So AN can be assigned to 100 billion residents, and is designed not to get used up in the next 500 years. Upon the death of a person, the database record is marked as 'inactive', but is never deleted.
Existing IDs and problem areas
Traditionally existing IDs in India have been token-based i.e. paper and plastic-based driving license, passport, PAN card, voter ID etc. None of these IDs have the feature of being lifetime digital identity that can be verified instantly in public domain at anytime anywhere for uniqueness and real existence. Moreover, as of 2013, only 150 million hold driving license, 50 million people hold passport and 30 million pay taxes, and these are mutually inclusive. These IDs do not qualify the generic all-purpose ID for life. These IDs expire at certain intervals, for various reasons, and need to be re-applied with payment for fresh-issuance or renewal. The identification number on these IDs changes with each renewal. Some IDs are not accepted across states, and people are asked to provide local ID. These IDs (except voter ID) are generally possessed by urban higher-income group. The rural and poor, who are largest number, do not possess it. Hence these do not serve the purpose of providing minimum KYC to a billion people. Others do have some ID yet not sufficient for minimum KYC. Women and children of well-to-do families in rural and tribal areas also generally lack KYC IDs.
Traditional IDs are not biometric based. Moreover, these plastic or paper-based IDs are easily reproducible with modified and fake information (such as by scan, super-imposition and print functions of ubiquitous printers). Thus these easily lead to identity theft and identity fraud.
Photocopy of IDs of various people are taken fraudulently or stolen from various places (e.g. photocopy shops, employment applications), then multiple copies are made and sold to needy people at high price. Since very large number of people in India do not hold minimum KYC IDs, therefore they buy such identity-theft papers to procure mobile SIM. At least 100 million mobile SIMs in India, currently in use, have been procured on identity-theft and Identity-fraud.
The driving license cannot be issued to a person below 18 years. It is not verifiable online instantly in public domain. Obtaining it is costly and lengthy process for the general public, and only 150 million hold it. Fake driving licenses also exist.
Obtaining a passport is costly and lengthy process, and only 50 million hold it. It is not verifiable online instantly in public domain. Fake passports also exist.
Although PAN is issued for the holder's lifetime, yet it is meant only for income tax payers. It is not verifiable online instantly in public domain. There are only 30 million income tax payers, yet 170 million PANs have been issued. Obtaining PAN is a costly and lengthy process, and millions of PAN cards are suspected to have a fake user, fake holder or fake card due to lack of biometrics and instant verification in public domain. Hence the Finance Ministry has started linking PAN with Aadhaar in order to eliminate fake users and fake cards, so that it can prevent income tax-evasion at higher slabs.
Ration cards are issued one per family, and every family does not hold one. It is not verifiable online instantly in public domain. It does not help migrant workers when they move to another location. Millions of ration cards are either fake or defunct, yet these are used as ID.
Voter ID cannot be issued to a person below 18 years. It is not verifiable online instantly in public domain. Names get deleted from the voter-list from time to time for various reasons. Voter ID becomes invalid once the name of that serial number is deleted. Photo and other data on voter ID is generally not clear and jumbled. Millions of fake and bogus voter IDs exist. It is not unique because some persons have multiple. It can be misused after death of the holder.
Therefore, there has been a need to provide instantly verifiable identity to all residents of India.
Rationale and goals
In order to avail social security benefits as well as government-regulated services (e.g. bank account, insurance, mobile SIM, driving license, vehicle registration etc.); compliance to Know-Your-Customer (KYC) conditions are mandatory. The minimum KYC consists of 3 proofs:
- Proof of Identity (name with face photograph),
- Proof of Age (date of birth or estimated age),
- Proof of Residence (presently staying).
As of November 2013, India has population of 1.25 billion, about 1 billion mobile phones, 640,000 villages, 75% literacy, 2.5% (30 million) income tax payer, 4% (50 million) passport, 12% (150 million) driving license, less than 20% (250 million) banking, 33% (400 million) migrant laborers and 60% (750 million) very poor people i.e. they live under Rs.100 ($2) per day income and starve at least one meal everyday. About 80% (1 billion) people do not hold identity documents to satisfy minimum KYC.
The Union Government spends Rs.3,000 billion ($50 billion) on various social security subsidies (see table below 'Social Security Budget 2013-14'). In addition, various state governments also spend on specific social security programs. As per various estimates, about 40% to 85% of social security benefits have been plagued with fictitious and multiple identities due to lack of standard identity system that is verifiable instantly at the point of service.
Provide identity
Out of 1.25 billion (125 crore) population of India, over 1 billion (100 crore) do not hold identity documents to satisfy minimum KYC.
There are over 400 million migrant laborers (internal) who are poor, landless, not educated or illiterate. These migrant workers do not exist on the government's databases, despite having worked for years in another district of the same state or another state of India. Lack of identity prevents them from basic rights and social security benefits.
The prime objective of Aadhaar is to provide lifetime digital identity which is verifiable instantly at the point of service with biometrics in paperless way.
Provide social security benefits
Aadhaar-platform is aimed at providing social security benefits based on eligibility thru direct benefit transfer. It provides access and options to rural and poor people. It helps bring transparency and eliminate corruption, leakage and inefficiency.
The following table shows financial size of the social security benefits funded by the Union government of India. The table does not cover other programs operated by various State governments:
| Region | Social Security Program | Billion Rupee | Billion US$ |
|---|---|---|---|
| Pan India | Total Subsidy for FY-2013-14 (approx) | 3,000 | 50.00 |
| Pan India | Food Security (PDS) (subsidy) | 1,250 | 20.83 |
| Pan India | Petroleum (subsidy) | 970 | 16.17 |
| Rural | Fertilizer (subsidy) | 660 | 11.00 |
| Rural | NREGA (non-subsidy) | 330 | 5.50 |
| Rural | Child Development (ICDS) (non-subsidy) | 177 | 2.95 |
| Rural | Drinking water and sanitation (non-subsidy) | 152 | 2.53 |
| Rural | Indira Awaas Yojana (IAY) (non-subsidy) | 151 | 2.52 |
| Rural | Maternal and child malnutrition (non-subsidy) | 3 | 0.05 |
Financial Inclusion
Aadhaar-enabled Bank Account (AeBA) is a Basic savings account (zero-balance) where a Debit-card is issued and Aadhaar number is used as the account number. It can be instantly opened (like prepaid bankcard). Transactions operate with fingerprint authentication only; as indicated by Aadhaar-logo on the card. PIN is not issued to zero-balance AeBA because it is aimed at financial inclusion of unbanked, illiterate and rural people. Bankcard operates at micro-ATM and other ATMs equipped with fingerprint scanner. Presently passbook is not issued to these accounts due to infrastructure problem. Transactions like deposit, withdrawal, transfer, balance-check can be performed. AeBA is used for direct payment of social security benefits such as pensions, scholarships, NREGA wages, healthcare, subsidy for LPG, kerosene, PDS ration, fertilizers etc.
Generally, a micro-ATM consists of a laptop computer or smart-phone equipped with 2G-internet, fingerprint scanner, receipt-printer, speaker and power backup (solar / battery). It is human-operated by commission agent called Banking Correspondent (BC) so that illiterate customers do not face problems of ATM machine operations. BCs are generally chemist-shops, provision shops or mobile-vans. It is similar to the commission agent model of prepaid mobile phone recharge.
Some banks issue photo-bankcards, that are boon to rural people and migrant workers because it works not only as bankcard but also as identity card. RuPay card by Indian payment-bridge NPCI and Saral Money Visa are two prominent AeBA bankcards.
Once bankcards become common in rural areas, then whole India will become a nation of cashless-transactions with higher transparency and accountability.
India is not the first country to implement the banking service for rural and under-privileged. It is being implemented after studying various banking systems in the world which have been successfully operational for the past several decades. Some of theses countries are Bangladesh, Philippines, Korea, South Africa, Kenya, Brazil, Mexico, Chile etc.
Budget, cost and benefits
About Rs. 35 billion (Rs.3,500 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, machinery) Government informed the Parliament in August-2013 that the total sanctioned cost of UIDAI (including cost of permanent infrastructure like land, buildings, computers, software etc.) is Rs.123 billion (Rs. 12, 398 crore) for assigning 1.25 billion Aadhaar numbers. Thus at the end the unit cost will be about Rs.100 per Aadhaar.
The projected cost and benefit analysis report by National Institute of Public Finance and Policy shows that Aadhaar-enabled public welfare programs will be able to save Rs. 1.1 Trillion (Rs. 110,000 crore) by the year 2020.
International Monetary Fund (IMF) has projected that Aadhaar-DBT will save 0.5% of GDP from corruption.
Aadhaar-enabled LPG subsidy payment has saved US$ 1 billion till August 2013 due to reduction of bogus connections. It is expected to save more than US$ 2 billion once LPG subsidy through Aadhaar becomes applicable to entire country. Similarly, 2/3rd of subsidized Kerosene has been saved from bogus beneficiaries in one block in Rajasthan.
Impedance
Pending bill
The Union Cabinet headed by the Prime Minister of India has cleared the UIDAI Bill-2010 on 08-Oct-2013. It is expected to be tabled in Parliament during winter session.
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. However, the government maintained that it does not deny public services such as LPG at market rate (i.e. non-subsidized). However, Aadhaar will continue to be mandatory for receiving social security benefits like subsidy on LPG. Those who do not want social security benefits can continue without Aadhaar. The Supreme Court made no such statement that Aadhaar or UIDAI is illegal or invalid.
Privacy concerns
Aadhaar registration collects biometric data and bare minimum information (proof of identity, age, and residence) through enrollment form. Peruse the Enrollment-Form with data fields on page-1 and instructions on page-2. No profiling information is collected, like religion, caste, income, property-holding, education etc.
India has a law called Information Technology Act 2000 that protects, together with other laws, all types of information including the Aadhaar data from theft and misuse.
Privacy issues and risks equally apply to information and data (with or without biometrics) provided by people to census office, tax office, passport office, driving license, vehicle registration, land and building registration, registration of birth, marriage and death, employers (current, past and prospective), banks, credit card companies, insurance companies, telephone service provider, television service provider, internet service provider, internet services (email, video, social media, search engine, chat, voice, file-storage and transfer etc.), registration at school/college, post-office and courier services, hospital registration and medical records, visa of US and UK etc.
In India, government departments, public and private sectors have been using biometrics (fingerprints and face photo) for years, decades and centuries in some or all offices. Examples of fingerprints usage are: Land and building registration (since British rule), Defense departments (fingerprints as service record of civilian as well as service personnel since British rule till now, also for access and attendance now), Planning Commission of India (for access and attendance), census office (for compulsory NPR), Passport, RTO (for driving license), insurance companies, IT, BPO and healthcare companies (for access and attendance), visa of US and UK etc.
Aadhaar does not violate any privacy or fundamental right.
Gallery
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Data collection (Demographic and Biometric)
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Iris image collection
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Finger-print collection
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Outside an Enrollment Center
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Inside an Enrollment Center
See also
- Aadhaar
- National Population Register
- National identification number
- Social Security Number
- Aadhar-enabled payment system
- National Population Register
- Social Security (USA)
- International identifiers (for corporate entities i.e. companies)
- Business Identifier Code (BIC/ISO 9362, identifier for corporate entities i.e. companies, trade, banking (SWIFT code, international Bank code, Bank International Code) etc.)
References
- http://uidai.gov.in/
- "About". UIDAI. Retrieved 2013-10-31.
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