E - COMMERCE

UIDAI – AADHAAR CARD
G2C BUSINESS
DEEPALI PANDIT AND SHIVAM KHARWAL
BFT -V

TABLE OF CONTENTS 1. Benefits of the UIDAI Model 11. Background 4. Introduction 3. Cost and Benefits 7. Features of the UIDAI Model 10. Mission Statement 6. Aapka Aadhaar 8. Conclusion . Impediments 13. The Revenue Model 12. Executive Summary 2. Budget. The Vision 5. Aadhaar Usage 9.

The main focus is on systematic analysis of what the site offers.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. . 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. using the evaluation criteria and comparison with physical means. The analysis includes a description of the range of services being provided by the site.

four kinds of activities take place     Pushing information over the Internet. public hearing schedules. Essentially. applying for services and grants. or requests to the agency. or another government agency. the business (government) can provide the needed products and services fulfil the needs from customer (citizen). In this model. e. government and employees (G2E). Conducting transactions.g. general holidays. issue briefs. e. and also between government and governments /agencies (G2G). By managing their customer (citizen) relationship. Informing the citizen Representing the citizen Consulting the citizen Involving the citizen .: regulatory services.: To enable the citizen transition from passive information access to active citizen participation by: 1. etc.g. 3. notifications. Two-way communications between the agency and the citizen. users can engage in dialogue with agencies and post problems. Within their interaction.g.: lodging tax returns. e. 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. 4. 2. a business.INTRODUCTION E-Government is digital interactions between a government and citizens (G2C). Governance. government and businesses/Commerce (G2B). Government-to-Citizen or Government-to-Consumer (G2C)   The G2C model applies the strategy of Customer Relationship Management (CRM) with business concept. comments.

who holds a cabinet rank. Chairman of UIDAI . was established in February 2009. The UIDAI is part of the Planning Commission of India.BACKGROUND The Unique Identification Authority of India (UIDAI). is an agency of the Government of India responsible for implementing the AADHAAR scheme. The agency will maintain a database of residents containing biometric and other data. The agency aims to provide a unique identification number to all residents in India. The agency. was appointed as the first Chairman of the authority in June 2009. but not identity cards. a unique identification project. Nandan Nileknai. which enjoys no legal backing. and is headed by a chairman. and will own and operate the Unique Identification Number database. Nandan Nilekani.

35 billion (Rs. Budget. It includes operating costs as well as capital expenditure (infrastructure of land.The Vision To empower residents of India with a unique identity and a digital platform to authenticate anytime. Cost and Benefits About Rs. 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. scalability and resilience of the technology infrastructure. . building. Build a long term sustainable organization to carry forward the vision and values of the UIDAI. Collaborate with partners and service providers in leveraging Aadhaar to serve residents effectively.3500 crore) has been spent totally on Aadhaar program from beginning (January-2009) till September-2013 with enrollment of 500 million (50 crore) persons. efficiently and equitably Encourage innovation and provide a platform for public and private agencies to develop Aadhaar linked applications Ensure availability. Make it attractive for the best global expertise in different fields to collaborate and provide valuable insights to the UIDAI organization. and machinery).

This number will serve as a proof of identity and address. who is a resident in India and satisfies the verification process laid down by the UIDAI.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. Sample Aadhaar Card . irrespective of age and gender. Any individual. anywhere in India. can enroll for Aadhaar.

mobile phone connections and other Govt. 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. Each Aadhaar number will be unique to an individual and will remain valid for life. and Non-Govt. services in due course. Aadhaar number will help you provide access to services like banking. Aadhaar will be:    Easily verifiable in an online. creed. religion and geography .Each individual needs to enroll only once which is free of cost.

and significantly bring down KYC costs for banks. This will reduce their dependence on cash. combined with its KYR standards. Customers will be able to withdraw money and make deposits at the local BC. no-frills accounts. less vulnerable to local power structures. and lower the risk of being exploited by BC's. high transaction costs and fixed IT costs that we now face in bringing bank accounts to the poor. Rural residents will be able to transact electronically with each other as well as with individuals and firms outside the village. This will make customers. 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. A high-volume. and lower costs for transactions. can remove the need for such individual KYC by banks for basic. Once a general purpose Aadhaar-enabled micropayments system is in . to reduce the risk of fraud and money laundering.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. It will thus vastly reduce the documentation the poor are required to produce for a bank account. Electronic transactions: The UIDAI's authentication processes will allow banks to verify poor residents both in person and remotely. The strong authentication that the UIDAI will offer. Multiple BC's at the local level will also give customers a choice of BC's. low-cost revenue approach: The UIDAI will mitigate the high customer acquisition costs. particularly in villages.

place. micro-insurance. a variety of other financial instruments such as micro-credit. micro-pensions. and micro-mutual funds can be implemented on top of this payments system .

A Partnership Model: The UIDAI approach leverages the existing infrastructure of government and private agencies across India. The UIDAI will provide standards to enable Registrars maintain uniformity in collecting certain . These Registrars can either be enrollers. The UIDAI will be the regulatory authority managing a Central Identities Data Repository (CIDR). pricing. and will devise suitable procedures to ensure their inclusion without compromising the integrity of the data. This will ensure that the data collected is clean from the start of the program. A pro-poor approach: The UIDAI envisions full enrolment of residents. the UIDAI will partner with agencies such as central and state departments and private sector agencies who will be 'Registrars' for the UIDAI. The UIDAI will ensure that the Know Your Resident (KYR) standards don't become a barrier for enrolling the poor. including issuing cards. The UID will only guarantee identity. and connect to the CIDR to de-duplicate resident information and receive UID numbers. much of the poor and underserved population lack identity documents and the UID may be the first form of identification they have access to. not rights. or will appoint agencies as enrollers. The Registrars that the UIDAI plans to partner with – the NREGA. who will interface with people seeking UID numbers. update resident information. with a focus on enrolling India's poor and underprivileged communities. The UID method of authentication will also improve service delivery for the poor. The UID is proof of identity and does not confer citizenship. collecting demographic data on residents for their specific requirements and in authentication. expanding KYR (Know Your Resident) verification. UID will prove identity. The UIDAI will emphasize a flexible model for Registrars: The Registrars will retain significant flexibility in their processes. To prevent this from seeping into the UIDAI database. not citizenship: All residents in the country can be issued a unique ID. which will issue UIDs. However.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. Enrolment of residents with proper verification: Existing identity databases in India are fraught with problems of fraud and duplicate/ghost beneficiaries. and PDS – will help bring large numbers of the poor and underprivileged into the UID system. The Authority will also partner with service providers for authentication. In addition. benefits or entitlements. Registrars will process UID applications. RSBY. the UIDAI plans to enroll residents into its database with proper verification of their demographic and biometric information. and authenticate the identity of residents as required.

demographic and biometric information. 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. not a card: The UIDAI's role is limited to issuing the number. photograph and both iris scans . preclude governments or Registrars from mandating enrolment. The UID will be a random number. This will not however. and in basic KYR. The number will not contain intelligence: Loading intelligence into identity numbers makes them susceptible to fraud and theft. This Number may be printed on the document/card that is issued by the Registrar. 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. The UIDAI will issue a number. where the benefits and services that are linked to the UID will ensure demand for the number.

The UIDAI will answer requests to authenticate identity only through a 'Yes' or 'No' response. individuals will provide accurate data. This incentive will become especially powerful as benefits and entitlements are linked to UID. The agencies may store the information of residents they enroll if they are authorized to do so. to ensure that no duplicates exist. and will help define the infrastructure and processes they need. The incentives in the UID system are aligned towards a self-cleaning mechanism. 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 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.Process to ensure no duplicates: Registrars will send the applicant's data to the CIDR for de-duplication. The existing patchwork of multiple databases in India gives individuals the incentive to provide different personal information to different agencies. . The CIDR will perform a search on key demographic fields and on the biometrics for each new enrolment. but they will not have access to the information in the UID database. The Authority will support Registrars and agencies in adopting the UID authentication process. Since de-duplication in the UID system ensures that residents have only one chance to be in the database.

For Registrars focused on social goals. enabling significant efficiencies and cost savings. leading to better resident satisfaction. It will also provide governments with accurate data on residents. For Registrars focused on cost. The UID will also give migrants mobility of identity. driving license. Once residents enroll. This will help Registrars clean out duplicates from their databases. and allow government departments to coordinate investments and share information. The strong authentication that the UID number offers will improve services. a reliable identification number will enable them to broaden their reach into groups that till now. For Registrars and Enrollers: The UIDAI will only enroll residents after deduplicating their records. have been difficult to authenticate. the UIDAI's verification processes will ensure lower KYR costs. . passport.BENEFITS For Residents: The UID will become the single source of identity verification. enable direct benefit programs. and so on. For Government: Eliminating duplication under various schemes is expected to save substantial money for the government exchequer. 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.

and Rs. the UIDAI will be taking on a process that costs agencies and service providers hundreds of crores every year. Registrars and service providers will also be able to charge for the cards they issue residents with the UID number. . 20-25 to enroll each resident. 10 for every biometrics confirmation. The basic identity confirmation will be provided free to firms. A physical verification of an address and other information about an individual generally costs a company between Rs 100 and Rs 500. Such pricing will be within UIDAI guidelines. This service could potentially be of use to airlines to check in passengers. which will offset its long-term costs. The Authority will evolve suitable policies on the issue of charging a fee for its authentication services. The UIDAI proposes to charge user companies Rs. 5 to verify each address. which would merely generate a 'yes' or 'no' response to confirm the identity based on the UID number. 3. 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. adding up to Rs. name and an additional parameter.000 crore.THE REVENUE MODEL By providing identity authentication.

Registration fails due to some or the other error and in most cases. .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. Also. Aadhaar is for all. the Card delivery is delayed. which makes it vulnerable to terrorism and other issue. but not everyone owns it due to the complex procedure it follows. 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. India's Intelligence Bureau claims anyone with an Aadhaar number can introduce others without any documentation to get the identity number. Security Concerns: The AADHAAR number is not recognized as a legal proof of residence due to the issues with the data protection. Conclusion The Aadhaar Card is inspired from the US Social Security Number but has not been as successful as the SSN.