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2013 -14



National ID/UID
Central MMP
Delivering Services

Excel Engineering College
NH 47 , Salem Main Road, Sankari West, Pallakkapalayam -637 303
Komarapalayam, Namakkal DT, Tamil Nadu, India

Team Members:
S.No Name Dept Mobile Email id
1 Prof. G. Sampath Director(T&P) 9842961602
2 S.Koutheesh ECE 9994959269
3 P.Dineshkumar IT 9688837873
4 N.Naveen CSE 9944398884


S.No Name Department
1 Premkumar Electronics and Communication Engineering
Electronics and Communication Engineering
Electronics and Communication Engineering
Electronics and Communication Engineering
Vimal Raj.B.K
Electronics and Communication Engineering
Computer Science Engineering
Computer Science Engineering
Computer Science Engineering
Information Technology
Ajith T B
Information Technology
N.Nasa Parveen
Information Technology
Information Technology
Information Technology

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National e-Governance Plan(NeGP)
The National e -Governance Plan (NeGP), being coordinated by the Department of
Electronics & Information Technology (DeitY), Ministry of Communications & Information
Technology,was approved in May 2006 with a vision to Make all Government services
accessible to the common man in his locality, through common service delivery outlets and
ensure efciency, transparency & reliability of such services at affordable costs to realise the
basic needs of the common man.
Mission Mode Project (MMP)
A mission mode project (MMP) is an individual project within the National e -
Governance Plan (NeGP) that focuses on one aspect of electronic governance, such as
banking, land records or commercial taxes.
NeGP comprises 27 mission mode projects (MMP), which are further classied as
state, central or integrated projects. Within NeGP, "mission mode" implies that projects have
clearly dened objectives, scopes, and implementation timelines and milestones, as well as
measurable outcomes and service levels.
Central MMPs include Immigration, Visa and Foreigners Registration & Tracking,
Income Tax, Banking and National Citizen Database. State MMPs include Road Transport,
Employment Exchange and Land Records. Integrated MMPs include National e-governance
Service Delivery Gateway (NSDG), eProcurement and EDI for eTrade. Each state
government can also dene ve MMPs specic to its individual needs.
The List of the 3 types of MMPs is as follows:
Central MMPs under NeGP
1. Banking
2. Central Excise & Customs
3. IncomeTax (IT)
4. Insurance
5. MCA21
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6. Passport
7. Immigration, Visa and Foreigners Registration& Tracking
8. Pension
9. e-Ofce
10. Posts
11. UID
State MMPs under NeGP
1. Agriculture
2. Commercial Taxes
3. eDistrict
4. Employment Exchange
5. Land Records(NLRMP)
6. Municipalities
7. e-Panchayats
8. Police(CCTNS)
9. RoadTransport
10. Treasuries Computerization
11. PDS
12. Education
13. Health
Integrated MMPs under NeGP
1. CSC
2. e-Biz
3. e-Courts
4. e-Procurement
5. EDI For eTrade
6. National e-governance Service Delivery Gateway
7. India Portal
Of the 31 Mission Mode Projects under NeGP, 23 MMPs are live and are delivering
services to the citizens. Under the Income Tax MMP, over 2.12 crore returns were led
electronically in FY 2013 -14 as on 31
December 2013.
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The unique identication project was conceived as an initiative that would provide
identication for each resident across the country and would be used primarily as the basis
for efcient delivery of welfare services. It would also act as a tool for effective monitoring
of various programs and schemes of the government.

The concept of a unique identication was rst discussed and worked upon in 2006
when administrative approval for the project Unique ID for BPL families was given on
March 3rd, 2006 by the Department of Information Technology, Ministry of
Communications and Information Technology. This project was to be implemented by the
NIC over a period of 12 months. After several rounds of discussions by various stakeholders
and on the recommendation of the Empowered Group of Ministers (EGoM) for collation of
the two schemes - the National Population Register (NPR)/MNIC under the Citizenship Act,
1955 and the Unique Identication Number (UID) of the Department of Information
Technology, the Unique Identication Authority of India (UIDAI) was constituted and
notied by the Planning Commission on 28th January, 2009 (vide notication no A -
43011/02/2009-Admn -I) as an attached ofce under the aegis of Planning Commission. The
UIDAI was given the responsibility of laying down the plan and policies to implement the
UID scheme, to own and operate the UID database and be responsible for its update and
maintenance on an ongoing basis.


Aadhaaris a 12 digit individual identication number issued by the Unique
Identication 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
satises the verication process laid down by the UIDAI can enrol for
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Each individual needs to enroll only once which is free of cost.

Each Aadhaarnumber 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

Easily veriable 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 classication based on caste,
creed, religion and geography


1. A 12-digit unique identity for every Indian individual, including children and
2. Enables identication for every resident Indian
3. Establishes uniqueness of every individual on the basis of demographic and
biometric information
4. It is a voluntary service that every resident can avail irrespective of present
5. Each individual will be given a single unique Aadhaar ID number
6. Aadhaar will provide a universal identity infrastructure which can be used by any
identity-based application (like r ation card, passport, etc.)
7. UIDAI will give Yes/No answers to any identity authentication queries

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Aadhaar isnt

1. Just another card
2. Only one Aadhaar card per family is enough
3. Collects proling information such as caste, religion, and language
4. Mandatory for every Indian resident who has identication documents
5. An individual can obtain multiple Aadhaar ID numbers
6. Aadhaar will replace all other IDs
7. UIDAI information will be accessible to public and private agencies

Why Aadhaar
Aadhaar -based identication will have two unique features:
Universality, which is ensured because Aadhaar will over time be recognised and
accepted across the country and across all service providers. Every resident's
entitlement to the number.
The numberwill consequently form the basic, universal identity infrastructure over
which Registrars and Agencies across the country can build their identity-based
Unique Identication of India (UIDAI) will build partnerships with various Registrars
across the country to enrol residents for the number. Such Registrars may include
state governments, state Public Sector Units (PSUs), banks, telecom companies, etc.
These Registrars may in turn partner with enrolling agencies to enrol residents into
Aadhaar will ensure increased trust between public and private agencies and residents.
Once residents enrol for Aadhaar, service providers will no longer face the problem of
performing repeated Know Your Customer (KYC) checks before providing services.
They would no longer have to deny services to residents without identication
documents. Residents would also be spared the trouble of repeatedly proving identity
through documents each time they wish to access services such as obtaining a bank
account, passport, or driving license etc.
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By providing a clear proof of identity, Aadhaar will empower poor and
underprivileged residents in accessing services such as the formal banking system and
give them the opportunity to easily avail various other services provided by the
Government and the private sector. The centralised technology infrastructure of the
UIDAI will enable 'anytime, anywhere, anyhow' authentication. Aadhaar will thus
give migrants mobility of identity. Aadhaar authentication can be done both ofine
and online, online authentication through a cell phone or land line connection will
allow residents to verify their identity remotely. Remotely, online Aadhaar-linked
identity verication will give poor and rural residents the same exibility that urban
non-poor residents presently have in verifying their identity and accessing services
such as banking and retail. Aadhaar will also demand proper verication prior to
enrolment, while ensuring inclusion. Existing identity databases in India are fraught
with problems of fraud and duplicate or ghost beneciaries. To prevent these
problems from seeping into the Aadhaar database, the UIDAI plans to enrol residents
into its database with proper verication of their demographic and biometric
information. This will ensure that the data collected is clean from the beginning of the
program. However, much of the poor and under - privileged population lack identity
documents and Aadhaar may be the rst form of identication they will have access
to. The UIDAI will ensure that its Know Your Resident (KYR) standards do not
become a barrier for enrolling the poor and has accordingly developed an Introducer
system for residents who lack documentation. Through this system, authorised
individuals ('Introducers') who a lready have an Aadhaar, can introduce residents who
don't have any identication documents, enabling them to receive their Aadhaar.
Biometric Devices :
Iris Scanner :
Iris cameras perform recognition detection
of a person's identity by mathematical analysis of
the random patterns that are visible within the iris
of an eye from some distance. It combines
computer vision, pattern recognition, statistical
inference and optics.
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Of all the biometric devices and scanners available today, it is generally conceded that
iris recognition is the most accurate. The automated method of iris recognition is relatively
young, existing in patent since only 1994.
Iris cameras, in genera l, take a digital photo of the iris pattern and recreating an
encrypted digital template of that pattern. That encrypted template cannot be re- engineered or
reproduced in any sort of visual image. Iris recognition therefore affords the highest level
defence against identity theft, the most rapidly growing crime.
The imaging process involves no lasers or bright lights and authentication is
essentially non-contact. Today's commercial iris cameras use infrared light to illuminate the
iris without causing harmor discomfort to the subject.
The iris is the coloured ring around the pupil of every human being and like a
snowake, no two are alike. Each are unique in their own way, exhibiting a distinctive
pattern that forms randomly in utero. The iris is a muscle that regulates the size of the pupil,
controlling the amount of light that enters the eye.
Iris recognition is rarely impeded by glasses or contact lenses and can be scanned
from 10cm to a few meters away. The iris remains stable over time as long as there are no
injuries and a single enrolment scan can last a lifetime.
Some medical and surgical procedures can affect the overall shape and colour of an
iris but the ne texture remains stable over many decades. Even blind people can use this
scan technology since iris recognition technology is iris pattern- dependent not sight
Iris scanning is an ideal way of biometric identication since the iris is an internal
organ that is largely protected by damage and wear by the cornea. This makes it more
attractive then ngerprints which can be difcult to recognize after several years of certain
types of manual labour.

A national identication number, national identity number, or national insurance
number is used by the governments of many countries as a means of tracking their citizens,
permanent residents, and temporary residents for the purposes of work, taxation, government
benets, health care, and other governmentally - related functions. The number will appear on
an identity document issued by a country.
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The ways in which such a system is implemented are dependent on the country, but in
most cases, a citizen is issued an identication number at birth or when they reach a legal age
(typically the age of 18). Non -citizens may be issued such numbers when they enter the
country, or when granted a temporary or permanent residence permit .
Many countries issued such numbers for a singular purpose, but over time, they
become a de facto national identication number. For example, the United States developed
its Social Security number system as a means of disbursing Social Security benets.
However, due to function creep, the number has become used for other purposes to the point
where it is almost essential to have one to, among other things, open a bank account, obtain a
credit card, or drive a car.

The Unique Identication Authority of India (UIDAI), is an attached ofce of the
Planning Commission of India to issue Unique Identication Number "Aadhaar" to residents
of India who desire to have it. It lacks legal or statutory authority at the present time
The Unique Identication Authority of India (UIDAI) is an agency of the
Government of India responsible for implementing the Aadhaar scheme, a unique
identication project. The agency, which has no legal backing was established in February
2009, and owns and operates the Unique Identication Number database. The Unique
Identication Authority of India has been established under the Planning Commission for
which a notication has been issued in January 2009. The agency provides a unique
identication number to all persons resident 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 M Nilekani is the chairman of the Unique Identication Database Authority of India
under the aegis of the Planning Commission. Mr Nilekani has the rank and status of a Cabinet
minister. Nandan Nilekani was appointed the rst Chairman of the authority in June 2009.
The UID program has been criticized, including by former Defense and External Affairs
Minister Jaswant Singh who has said "I don't agree to Nandan Nilekani and his madcap
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(UID) scheme which he is trying to promote".

The statutory board of enquiry for Delhi Development Authority has dumped the
change of land use for UIDAI's proposed headquarters on a petition by India Against
Corruption's national convenor Sarbajit Roy. Roy had claimed the prime property in central
New Delhi worth Rs. 900 crore was leased to UIDAI at triing price. Currently UIDAI
operates out of ofces in New Delhi's Connaught Circus. Since UIDAI is not an authority, its
nodal agency, the Planning Commission, is responsible for providing UIDAI's infrastructure.
The land is owned by 2 nancially ailing telecoms, BSNL and MTNL, which are locked in a
court dispute.
Aadhaar is the national identication number system of India in the format 1234 -
5678-9012. It isa 12-digit digital identity that can be veried online instantly. It is assigned
to all residents of India (including foreigners on work visa and their dependents) for their
lifetime, on a voluntary basis. It is not a proof of citizenship. It only guarantees identity, not
rights, benets or entitlements.
The Aadhaar program is operated by the Unique Identication Authority of India
(UIDAI), an authority of the Government of India. It was established in January 2009 under
the Planning Commission of India . Aadhaar is expected to play a prominent role in India
reforms from 2014 onward.
UIDAI is the Registrar of Identities; that is, it registers, assigns and veries the unique
identiers. It is supposed to register two types of unique identities.
1. Residents of India (called Aadhaar)
2. Corporate entities (corporate UID) for companies, banks, NGOs, trusts, political
parties, etc.
So far UIDAI has made progress on Aadhaar numbers (AN) only. Work on corporate
UIDs is yet to be published.
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However, corporate UID has been provisioned within the 12 - digit UID number
system. The corporate UID is supposed to produce the similar effect for corporate entities as
Aadhaar does to a person, that is, identication and traceability of transactions. It is supposed
to bring transparency on nancial transactions and donations, and to prevent corruption,
money laundering, benami transactions (i.e. under a ctitious name), allocation of natural
resources like land, spectrum, mining of sand, iron ore, coal blocks, etc. A similar identier is
dened by USA and Europe in ISO 9362 (business identier code BIC) for international
business transactions (nancial and non - nancial).

UIDAI stores identities in its main database server called the central identity data
repository (CIDR). Aadhaar identity is like internal passport to access various services in
India. Aadhaar enrolment commenced in September 2010. Corporate UID enrolment is yet to
Aadhaar serves the purpose if an Aadhaar holder verbally tel ls the AN and it gets
instantly veried online at the point of service, through KYC or E- KYC process in a
paperless way, which provides high reliability of identity. Showing only a paper Aadhaar
letter provides low reliability of identity, as it can be easily faked.
By April 2014, about 51% population holds Aadhaar. The Aadhaar program has
already achieved the critical mass as of March 2014 by assigning 600 million (60 crore) AN
and linking over 60 million bank accounts for direct benet transfer for various social
security benets across many states. By 1 January 2014, half the nation (289 districts across
various states) was covered under Aadhaar - DBT for various benets. Over 100 agencies (e.g.
banks, insurance, telecom etc.) use it for authentication services.
Reserve Bank of India has planned Aadhaar - linked bank account for all adults of
India by January 2016 as its commitment of nation - wide Financial Inclusion.
Aadhaar program is the largest biometric database in the world. Currently it has 750
milli on people (7.5 billion ngerprints, 1.5 billion iris image, 750 million face photo) with 10
Petabytes of data. It will reach the entire population of 1.25 billion people by December 2015
at the current rate of enrolment, 15 PB of data and over 200 trillion biometric matches per
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National ID of India was rst conceptualised and proposed by the Bhartiya Janata
Party (BJP) before 1998 in view of illegal immigrants and defective distribution of social
security benets; i.e. prior to forming government at the center under NDA coalition in 1998.
Now and then this topic is discussed by BJP/NDA.
Aadhaar number (AN) is a 12 - digit national identication number. Its format is 1234 -
5678-9012 where the rst eleven digits are used as a sequence and the rightmost digit as an
error detection check - sum.
Aadhaar letter is either color printed on a thick paper- card and sent thru postal service
or pdf soft copy securely downloaded from the UIDAI website and then printed on A - 4 sheet.
It bears (inEnglish and local language) the name of the holder, date of birth / age, address,
mobile number, face - photo, Aadhaar number, enrollment number, QR - code. In addition it has
four point declaration:
1. Aadhaar is a proof of identity, not of citizenship.
2. To establish identity, authenticate online.
3. Aadhaar is valid throughout the country.
4. Aadhaar will be helpful in availing government and non-government services in
Therefore, it is not a proof of citizenship, hence it is assigned to all residents including
the foreign nationals on valid long term visa. Aadhaar guarantees identity only; not rights,
benets or entitlements. The cut-through part can be separated and laminated to bankcard
size as portable ID card.
Existing Aadhaar-holders may want to update / correct their photograph, address and
mobile number etc. It can be done in online mode at this link as well as ofine mode using
this update form. Children have to update their biometric data after attaining the age of 15
years for successful biometric authentication. New born children or left out adults may have
to be enrolled after the present camp - drive completes 1200 million (120 crore) enrollments.
Therefore, permanent ofces called Aadhaar seva kendra (ASK) are being opened at district
level on the lines of passport seva kendra (PSK). Locate Aadhaar seva kendra near you at this
link. Examples of such ofces are:
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The general purpose online services to meet many needs on daily basis is the Aadhaar
kiosk. It can be used to check Aadhaar status,download e - Aadhaar, update data, book
appointment and locate enrollment centers.
If one wants to replace the Aadhaar letter version with date of birth (DoB) instead of
the year of birth (YoB) (older version issued till 2013), then it can be done by simply
downloading the E-Aadhaar letter once again at the Aadhaar kiosk. It works with two options
and needs either (a) Aadhaar number and registered old mobile number for OTP (one time
password) sent by SMS; or (b) Enrollment number and any mobile number for OTP sent by
However, if someone does not hold the same registered mobile number any more,
then the E-Aadhaar letter can be downloaded without OTP requirement at the authorized e -
governance outlets such as the BangaloreOne in Karnataka state; Akshaya out lets in Kerala
state etc. One can nd the similar e-governance outlets for one's state / district thru google
search or other means.
One can get another copy of Aadhaar letter by sending email to or
calling the helpline 1800-300-1947 (toll free).
If Aadhaar number is lost or forgotten then one can obtain the number from any place
where it was used for e.g. KYC for mobile SIM, bank account linking , LPG linking etc. It
also can be obtained by telling the demographic information and mobile number to the
helpline 1800-300-1947 (toll free). Re - registration is generally rejected as it has costs and is
computing intensive. Once the number is known, then Aadhaar letter can be obtained by
downloading, from the e- governance outlets or thru the UIDAI helpline as above.
AN is a digital identity, instantly veriable 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 identier for income tax payer
permanent account number (PAN) card. The government expects that it will enable under -
privileged people to access basic rights and social security benets, which they have been
deprived so far due to lack of identity .
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AN is assigned to residents of India for their lifetime. It is designed to enable
government agencies to deliver retail public services securely based on biometric data
(ngerprint, 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
benets from anywhere e.g. drawing PDS ration from any shop etc.
AN also works as a nancial 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 benets. In case of change of
personal information (mobile number, residence), the same can be updated with proof at
Aadhaar Kendra, the permanent eld - ofce.
AN is stored in a centralised database (CIDR) and linked to the basic demographics
and biometric information photograph, ten nger - prints and both iris of each individual. It
is veriable 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 proling information
such as caste, creed, religion or language. Since Aadhaar uses 11 - digit for sequence, therefore
it has an address space of 1011 (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
Aadhaar database record is marked as "inactive", and is never reused nor deleted.
The de-duplication capability (uniqueness) of AN is theoretically 99.9% and
practically 100% due to combination of multiple demographic and biometric attributes.

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Social security number of USA is a nine - digit number in the format 123 - 45 - 6789
issued to U.S. citizens (at birth) and foreign nationals on work visa like Aadhaar. It was
started almost a century ago (1935) when there were no electronic biometric technology
available. SSN card does not have even face - photo of the holder unlike Aadhaar. There are
few problems with SSN due to lack of biometric data and technology of the 1935: (a) some
people hold more than one SSN, (b) SSN claimed by a person cannot be proven without
relying upon other means of identication and documents, (c) fraudulent SSNs are not easily
detectable with publicly available information, (d) SSN does not has a check digit, (e) SSN is
guessable that may cause identity theft. Aadhaar does not suffer from these problems due to
biometric data, processes, tools and technology of the 21st century.

The power of Aadhaar number (AN) vests with its instant, online, consent - based
validation at the point of service (PoS) using demographic and biometrics attributes at
anytime from anywhere in a paperless way. No other ID in India has this feature.
Authenticator is the license -holder from UIDAI who can verify Aadhaar identities online,
unlike only passport ofce that can verify passport, and only RTO that can verify driving
license and none else. It has dependence on minimum 2G internet access. Authentication
devices and PoS will become ubiquitous by 2014 - end.

It is designed to be secure, auditable, non- repudiable, and consent - based (by
biometrics or a one - time password (OTP)). OTP is sent by CIDR server to registered mobile
phone number or email ID of the Aadhaar- holder. There are mainly 2 types of authentication
with different combination of attributes:

KYC: On consent, the service provider inputs the AN + Demographic data +
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Biometric or OTP, and receives "Yes" or "No" response from CIDR database server.
E-KYC: On consent, the service provider inputs the AN + Biometric or OTP, and
receives demographic data (photo, name , gender, address, date of birth, mobile number,
email-id i.e. receives digital copy of the Aadhaar letter) from CIDR database server.
Biometric data of resident is never shared by CIDR.
The authentication data requested and received use encrypted communication from
machine to machine through an application programming interface (API) without human
intervention. Following authentication, the received KYC data gets stored in the system of
the service provider in the required data-format along with audit-track. Then this data is
processed and service is provided to the customer immediately.
The service provider decides what demographic and biometric attributes it wants to
use for a given service. For example, iris and multiple ngers along with demographics may
be used for high value transactions. Similarly, few demographic attributes with OTP only (no
biometrics) may be used for low value transactions.
UIDAI does not support authentication requests thru paper letter, email or telephonic.
As of March 2014, over 100 agencies use Aadhaar authentication services. Presently
major users of the services are banks (e.g. Axis, ICICI, SBI etc.), passport ofce, income tax
PAN, and telecom service providers (e.g. Vodafone, Reliance etc.).
In order to make nancially self - sustainable, the UIDAI will collect volume based fee
for its authentication services. Authentication service agency (ASA) / authentication user
agency (AUA) enter into license agreement with the UIDAI. The authentication service is
free till 30 June 2014. The fee structure is yet to be declared.

The identities given in the following table were devised for its special purpose except
Aadhaar. Passport is to identify international traveler, driving license is for eligibility to
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drive, Permanent account number (PAN) is to identify income tax payer. (sources: Aadhaar
enrollment form, Aapka Aadhaar, passport seva,driving license, PAN)
Till the absence of National ID of India - Aadhaar, people have been using these
special purpose identities for general purpose despite various deciencies, e.g. PAN card is
not accepted as proof of address due to absence of address on the card, driving license and
passport cannot be veried instantly at the point of general service etc. The perusal and
analysis of these identities from the viewpoint of people, process, tools and technology at the
point of service authentication show its strength and weaknesses as general purposes identity,
hence degree of acceptability.
To avail social security benets 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 mandat ory. The minimum KYC consists of 3
1. Proof of Identity (name with face photograph),
2. Proof of Age (date of birth or estimated age),
3. Proof of Residence (presently staying).
As of January 2014, 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) bank account, 33%
(400 million) migrant labourers 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 do cuments 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 specic social security programs. As per various estimat es,
about 40% to 85% of social security benets have been plagued with ctitious and multiple
identities due to lack of standard identity system that is veriable instantly at the point of
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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 (40 crore) migrant labourers (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 benets.
The prime objective of Aadhaar is to provide lifetime digital identity which is
veriable instantly online at the point of service with biometrics in paperless way.
Aadhaar -platform is aimed at providing social security benets / subsidies based on
eligibility thru direct benet transfer. It provides access and options to rural and poor people.
It helps bring transparency and eliminate corruption, leakage and inefciency.
The following table shows nancial size of the social security benets / subsidies
funded by the Union government of India. The table does not cover other programs operated
by various State governments, see Public welfare in India. The social security benets /
subsidies offered by various state governments is estimated to be above Rs. 600 billion
(US$10billion). Thus total subsidies become Rs.3,600 billion (US$60 billion).

Reserve Bank of India has planned Aadhaar - linked bank accounts for all adults of
India by January 2016 to meet its commitment on Financial Inclusion. It will greatly
transform India by preventing the poor people falling into debt- traps of unlawful money -
lenders, cashless transactions, elimination of poverty and corruption.
A basic Aadhaar-enabled bank account (AeBA ) is a basic savings account (zero -
balance) where a debit -card is issued and the Aadhaar number is used as the account number.
It can be instantly opened (like a prepaid bankcard). Transactions operate with ngerprint
authentication only; as indicated by the Aadhaar logo on the card. PIN is not issued to zero -
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balance AeBA because it is aimed at nancial inclusion of unbanked, illiterate, and rural
people. Bankcard operates at micro - ATM and other ATMs equipped with ngerprint 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 benets 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, ngerprint scanner, receipt - printer, speaker and power backup (solar / battery). It
is human- operated by a commission agent called a 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
prepaidmobile phone recharge.
Some banks issue photo bankcards, that are a boon to rural people and migrant
workers because they work not only as bankcards but also as identity cards. RuPay card by
Indian payment -bridge NPCI and Saral Money Visa are two prominent AeBA bankcards.
Once bankcards become common in rural areas, India will become a nation of
cashless transactions, like the USA but with higher transparency and accountability. Cash is
used for bribery and corruption.

Once rural and poor people get the bank account, they become eligible to avail bank
loans for farming and domestic purpose at 10% per year interest rate. It would be a great
transformation of rural and poor India. Currently village money - lenders lend at usury rates
(10% to 30% per month i.e.120% to 360% per year) which results into many social evils.
The related social evils are debt- trap, bonded - labour for generations, poor become landless,
homeless destitute and children get deprived of education as they become bonded - labourer,
families get shattered and many farmers commit suicide every year due to impractical, blood -
sucking loan-interest burden. Thus nancial inclusion will put stop to unlawful, blood -
sucking money -lending business and the associated social evils.
India is not the rst country to implement the banking service for rural and under -
privileged. It is being implemented after studying various banking systems in the world
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which have been successfully operational for the past several decades. Some of these
countries are Bangladesh, Philippines, Korea, South Africa, Kenya , Brazil, Mexico, Chile etc.
Various nancial as well as non-nancial services are being made Aadhaar- enabled,
called Aadhaar - enabled Service Delivery (AeSD) in phased manner. By 1 January 2014, half
the nation (289 districts across various states) has been covered under DBT for subsidised
LPG. By August 2013, 6.3 million duplicate connections were cancelled after detection by
Aadhaar - seeding. Thus government saved $1 billion on r educed import by mid 2013. Over
17 million consumers received Rs. 30 billion (Rs 3,000 crore) as cash subsidy for LPG by
January 2014. In view of the Supreme Court directive of 24 March 2014, presently all
Aadhaar -enabled services are optional.
Following is the list of AeSD as of 31 January 2014. By default, Aadhaar is optional
unless stated compulsory for a given region.
Aadhaar direct benet transfer (DBT) is an Aadhaar - enabled nancial service used
for direct payment of social security benets into the bank account of the Aadhaar holder.

A pre-existing or new bank account can be enabled as AeBA by seeding (linking) it
with Aadhaar number. Seeding makes mapping information stored onto NPCI payment -
gateway, that facilitates the subsidy payment. The seeding helps identify the genuine and
eligible beneciary, and prevents duplicate and nonexistent (fake, dead) persons. One can
link bank account as self - service option thru ATM kiosk, Internet, bank website, telephone or
by providing a copy of t he Aadhaar letter to bank. Bank links the account with Aadhaar
number after online verication thru RASF (Remote Aadhaar Sharing Framework link).
Eligibility of beneciary is applied based on rules and is cross - checked with other
related databases which are also Aadhaar linked. This approach is designed to improve the
audit trail, add efciency; prevent corruption, middlemen and delayed payments; eliminate
non-existent, duplicate and ineligible beneciaries. It results in direct benet access to the
eligible people; and saves multi -billion rupee from corruption annually.
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Tangible benets become visible from 2014. A report of UBS Securities published in
Jan 2014 shows that Aadhaar DBT can save 1.2% of GDP. GDP of India is $1,800 billion,
thus the saving is $22 billion (Rs. 1.32 trillion), which ultimately translates to 33% savings on
overall social security spending.
Finance Minister informed the Parliament during Vote on Account that as of 31
January 2014, under DBT Rs. 33 billion for 21 million LPG subsidy and Rs. 6.28 billion (628
crore) have been transferred for various social programs in 5.4 million transactions.
Aadhaar number is the pivot of e - governance from identity perspective. The
objectives of Aadhaar number (AN) is to use it as an effective governance tool to bring
transparency, efciency and weed out the bogus beneciaries from social security programs
e.g. social security pensions, scholarships, public health, NREGA, subsidy on PDS ration,
kerosene, LPG etc. Thus Aadhaar is expected to save public exchequer from bogus
beneciaries up to Rs. 1.1 Trillion (Rs. 1,100,000 crore) by the year 2020 as per study report
of National institute of public nance and planning.

In 1980s pointing towards the widespread corruption in social security programs in
India, the then prime minister Rajiv Gandhi had made a famous statement in Parliament that
only 15% of benets reach the poor people; the remaining 85% are eaten - away by the corrupt
ofcials and middlemen. Similarly, the World Bank chief said that Aadhaar will help
eradicate poverty in India.
The stand-alone databases of social security services can not interact with each other
due to lack of a unique identier like AN. Thus stand - alone databases do not have ability to
detect and prevent ctitious and ineligible beneciaries. Therefore, AN is aimed at
eliminating retail corruption in the public domain which has affected social security programs
since independence. In India, about 750 million (60%) people starve everyday for at least one
Although Aadhaarcan prevent retail - corruption to much extent, yet it is not capable
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of preventing wholesale - corruption like allocation of coal - blocks, 2G spectrum, mining of
iron-ore, sand, onion hoarding etc. corporate UID is required to prevent such wholesale -
corruptions and this provision is already inbuilt in UIDAI Number System, yet
implementation is pending.
Identity frauds such as identity theft (using the identity of another person, dead or
alive) and identity document forgery (fake IDs created on ctitious person, also called
benami) has been a common practice in India. The scan, super - imposition and color- print
functions of ubiquitous printers have made paper - based and plastic card - based frauds much
easy. Identity fraud is committed for nancial gain or due to compulsion. Identity fraud
committed for nancial gains are mostly benami companies and benami bank accounts used
for bribery and money laundering. Identity fraud committed on compulsions is either due to
lack of a person's own ID documents, or due to the intention of not using one's own ID.
In the telecoms sector companies paid a Rs. 7 billion (Rs. 700 crore) penalty to the
telecoms regulator on fake KYC IDs in 2011. The examples also can be used to other areas
such as PDS rat ion and kerosene, subsided LPG, welfare pensions, scholarships etc.

There are 400 million workers who work in other states (internal migrant workers) in
unorganised sectors like construction and farming. They need mobile phones to keep in touch
with their family and employers. They do not possess minimum KYC IDs (proof of identity,
proof of age, proof of residence) to procure a mobile phone SIM card. Telecommunications
service providers (TSP) in India ask for minimum KYC IDs, where the proof of residence
(PoR) must be the local address only. Since they normally stay in shared shanties without any
valid documents, they cannot produce PoR. So they fraudulently purchase available IDs of
other persons at a high price to obtain a mobile SIM. Prisoners, criminals and terrorists never
procure mobile SIMs using their own IDs due to obvious reasons of getting tracked.
The employees of TSPs are generally under pressure to achieve sales targets. Hence
there are cases where one set of IDs submitted by a genuine customer to procure just one SIM
has been reused 100 times to issue 100 SIMs fraudulently.
Some photocopy shops fraudulently scan and make extra copies of identity papers and
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sell them at a premium, leading to identity fraud. Some prospective employers do not dest roy
the papers of rejected candidates, and some times that goes into wrong hands leading to
identity fraud.
Employees' Provident Fund Organisation of India frauds can be prevented after its
Aadhaar linking.
Aadhaar E -KYC is designed to solve the problems of identity fraud. Telecom
companies have started adopting it to avoid KYC penalties.
Thousands of ctitious employees are found on payrolls of government and public
sectors each year. In 201314, 29,000 ghost employees of Jammu and Kashmir government
have been detected, 1,588 of Municipal Corporation of Delhi and 400 of Air India including
some ghost pilots have been detected. It not only causes billions of rupee of monetary
corruption and loss of public work but also it poses grave security threat to the nation.
Corrupts take away all the monetary benets worth billions of rupee like salary, allowances,
pensions, PF etc. Such corruptions can be prevented by seeding Aadhaar with employee
recruitment process, salary payment, provident fund a nd pension. Some private sector
companies have adopted Aadhaar to avoid such problems.
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 veried 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 identication 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 sufcient for minimum
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KYC. Women and children of well -to-do families in rural and tribal areas al so generally lack
Traditional IDs are not biometric based. Moreover, these plastic or paper - based IDs
are easily reproducible with modied 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.
Photocopies 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 veriable
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 veriable 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 veriable 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 verication in public domain. Hence the
Finance Ministry has started linking PAN with Aadhaar to eliminate fake users and fake
cards, so that it can prevent income tax - evasion at higher slabs.
Ration card is issued one per family, and every family does not hold one. It is not
veriable 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.
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Voter ID cannot be issued to a person below 18 years. It is not veriable 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.
Process is almost similar to obtaining a fresh passport. Enrollment is voluntary and
free of cost. When a person desires to obtain Aadhaar identity, he or she has to submit a
prescribed enrolment form attached with minimum KYC documents (i.e. proof of identity,
age, residence) to a UIDAI appointed registrar. If, for example, a person from a village does
not have KYC IDs, then a recognised Introducer (generally a village head) can introduce and
certify his or her PoI, PoA and PoR. Introducers are appointed by UIDAI based on certain
criteria and conditions.

On completion of paper formalities, the biometric scanning (2 iris, 10 ngers, facial
photo) is done by the operator and a print ed acknowledgement is given to the applicant. Then
scanned data, along with the application form, is sent to appropriate authorities for
verication and nal processing. It takes about three months to get an Aadhaar number on
successful processing.
As self-service, it is faster to download the "E- Aadhaar" letter (pdf copy) from the
UIDAI portal after 3 months than await the postal delivery of Aadhaar letter, which ma y take
6 to 9 months presently.
The UIDAI was initially mandated to enr oll 600 million people in its assigned
territory. Similarly, the census operations group (Registrar General of India under the
Ministry of Home Affairs) was initially mandated to enroll the remaining 600 million people
in its assigned territory under the N ational Population Register (NPR) program. Although an
enrolment of 600 million is done by census operations, the collected data is given to the
UIDAI for generation of Aadhaar numbers. Thus UIDAI generates Aadhaar numbers for the
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whole of India.
UIDAI has no role to play in management of NPR enrolment centres.
The UIDAI territories for enrolment are Delhi, Himachal, Goa, Karnataka, Kerala,
Andhra, Pondichery, Maharashtra, Madhya Pradesh, Sikkim and Tripura, etc.
The NPR territories for enrolment are Uttar Pradesh, Bihar, Uttara Khand,
Chhattisgarh, Arunachal Pradesh, Jammu and Kashmir, Tamil Nadu, West Bengal and
Assam, etc.
As of October 2013, a large volume of biometric data have been rejected by UIDAI
due to poor quality of scanning, thus causing delays and inconvenience to the public.
Due to extremely slow pace of enrollment in populous states of Uttar Pradesh, Bihar,
Uttara Khand and Chhattisgarh, the cabinet committee on Unique Identication Authority of
India (CC UIDAI) has reallocated these four states to UIDAI in February 2014.

The total number of Aadhaar enrolment as of April 2014 is over 750 million (75.0
crore) and is going at the rate of about 1 million per day. The total number of Aadhaar
number (AN) processed and assigned as of 14 April 2014 is over 617 million (61.7 crore).
The following table displays the progress of assigned AN (state - wise). The up- to - date
information is available on the ofcial website of UIDAI.
Delhi is the rst State to achieve 100% AN enrolment in September 2013. The
Reserve Bank of India (RBI) has made Aadhaar and E - KYC as a standard proof of identity
and residence for banking. Axis Bank is the rst bank to make all its branches Aadhaar and
E-KYC compliant from October 2013. Without producing any paper - based identity
document, an Aadhaar - holder can open bank account, by just providing Aadhaar number and
validating with ngerprint through E - KYC process.
The Union Public Service Commission (UPSC) accepts Aadhaar to identify
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candidates in its civil services exams like IAS, IPS etc. LPG companies use AN for KYC, to
pay subsidy and eliminate fake beneciaries. In 2013 it saved one billion dollar from fake
beneciaries.Various state gover nments use it for public welfare programs such as pensions
and scholarships, which has been saving millions from fake beneciaries. The government
estimates that Aadhaar will save it 1.1 trillion by 2020. Private Sector company Trident uses
Aadhaar for employee recruitment and salary payment to check fraud and reduce cost. Future
applications of Aadhaar can be to cast vote from anywhere, avail social security benets from
anywhere e.g. drawing PDS ration from any shop etc.
As the public databases are getting inter - linked one by one through Aadhaar Number
(AN) in various states (particularly Delhi, Kerala, Maharashtra and Andhra Pradesh),
middlemen and ofcials in those regions now nd difcult to continue with corruption in
social security programs like pensions, scholarships, health, NREGA, PDS Ration, subsidised
kerosene and LPG.
Corrupt people are nding difcult to buy and sell benami land and building
(i.e.under ctitious name), to open and operate benami companiesfor money - laundering.
They are also nding difcult to open and operate benami bank accounts for keeping
criminal proceeds. Tax- evaders are nding difcult to evade taxes, and impersonation and
proxy are getting difcult to commit due to online biometric validation.
Criminals and terrorists are getting detected and tracked through inter- linked
databases of mobile phone numbers, bank account numbers and travel documents. Illegal
immigrants are similarly detected and tracked through these databases. Records are becoming
accessible to police from any state of India. It is getting difcult to obtain new driving
licenses and arms license from another state, once it is impounded.
Ghost employees are being detected in thousands and billions of rupees are bei ng
saved on their sal ary, benets, pensions and PF.
Village money-lenders are losing their business of high interest rates (240% to 360%
per annum) causing debt - traps to poor as the Aadhaar - enabled nancial inclusion is taking
place slowly.
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Some people oppose Aadhaar due to unfounded fears and ignorance. The government
ofcers and police still can access our private data given for banking, tax PAN, passport,
voter card, driving license, property registration etc.
Some politically motivated people have been opposing Aadhaar. These people ignore
socio-economic benets brought by the technological marvels of instant and accurate
verication of identity. They seem to oppose it just for the sake of electoral benet s rather
than better governance and development of Indian society. In addition, the beneciaries of
corruption are naturally opposed to its anti -corruption properties. Although the parliament has
passed the UIDAI budget ve times in ve years between 2009 and 2014 and the UIDAI -
2010 bill has been introduced in the parliament, yet there is some opposition.
The Union cabinet headed by the Prime Minister of India cleared the National
Identication of India Bill -2010 on 8 October 2013. The text of the bill is here. It has been
introduced in the Parliament (Rajya Sabha) as bill # LXXV of 2010 by the UPA - 2
government in January 2014. Till the bill is passed, UIDAI will continue to function under
the executive order, Aadhaar enrollment will continue as planned and optional use of
Aadhaar number will continue for various services. Once the bill is passed, the incumbent
government can make Aadhaar mandatory for various services particularly the subsidy
payout to prevent corruption and leakage.
The parliament has passed the UIDAI budget ve times in ve years between 2009
and 2014. There are plenty of support to Aadhaar with highlighted benets.
The Supreme Court of India had passed an Interim Order on 23 September 2013 that
no public services such as LPG be denied to public due to mandatory use of Aadhaar.
Optional use of Aadhaar is ne.
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
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for receiving social security benets like subsidy on LPG. Those who do not want social
security benets can continue without Aadhaar. The Supreme Court made no such statement
that Aadhaar or UIDAI is illegal and invalid.
On 24 March 2014, the SC made its ruling on optional versus mandatory. The SC said
that Aadhaar will not be mandatory for any public service including subsidy payouts. SC did
not say that Aadhaar enrollment, its optional use and UIDAI are illegal, therefore enrollments
and optional use will continue as planned. Optional use of Aadhaar as ID proof, age proof
and address proof for various public services will continue as usual e.g . passport, driving
license, PAN, bank account, insurance etc. This restriction of SC on mandatory use of
Aadhaar for public services has drawn mixed reactions from various quarters. Some say that
Aadhaar is required to stop leakage and corruption. Others say that governance and policy
making is not the work of judiciary but that of the Executive. Thus the judiciary has
The central / state government will now have to pass bill in the Parliament / state
legislative assembly to make mandatory use of Aadhaar for any public service to nullify the
SC order constitutionally.
There are media reports that some illegal immigrants have obtained Aadhaar based on
fake or genuinely issued 3 documents - proof of identity, proof of age / DoB and proof of
address. It is good to register illegal immigrants with Aadhaar system for deterrence,
detection, tracking and deportation as explained below.
Aadhaar is not a nationality document like the income tax PAN card and driving
license; and is issued to all legal residents including the legal immigrants/ foreign nationals.
If an Aadhaar -holder is found to be illegal immigrant then the person is arrested and
deported; and Aadhaar data is accordingly updated as 'illegal immigrant'. If the person re -
enters India illegally, then he/she cannot remain hidden, is instantly detected while availing
any public service due to online authentication, identied, arrested and appropriate action is
taken by law. Therefore, illegal immigrants cannot use any public s ervice due to fear of
detection that is Aadhaar - enabled such as employment, bank account, passport, PAN, driving
license, voter card, PDS ration, land registration etc. In the absence of benets of public
service such as employment, bank account etc., there is no reason for people to take immense
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risk to enter India as illegal immigrants. Thus Aadhaar also serves as a tool of deterrence,
detection, tracking and deportation.
There are a few points that need thoughts and correction in law, system and attitude:
1. How illegal immigrants have been obtaining genuine Indian passport, voter card,
ration card, PAN card and even contesting elections before existence of Aadhaar?
2. Why are the borders of India not sufciently guarded despite huge spending on
over 2 million army and para- military forces, or there is corruption at the border?
3. How do the illegal immigrants obtain other base documents before obtaining
Aadhaar - passport, PAN card, driving license, voter card etc.?
4. Why no action has been seen on the irresponsible gazetted ofcers and law
makers - MPs and MLAs who have issued identity proof to illegal immigrants?
5. Why people do not inform the police about the Aadhaar - holder illegal immigrants
they claim to know; so that Aadhaar database can be marked and deportat ion can
To obtain Indian passport, one has to provide biometric data (face - photo, 10
ngerprint, identication mark on body, but no iris image) as well as demographic data
(proof of identity, age, residence, education level, 2 references from neighbourhood, pending
criminal cases) with fee. Passport is issued with an embedded electronic chip for contactless
communication and tracking whereas Aadhaar letter is issued on simple paper and pdf soft -
copy. Similarly, driving license of almost all states requires biometric data, education
certicate and medical test report (blood group, disease details, vision, height, weight etc.).
Driving license is also issued on chip - based smart card. See the comparison table 'Process
comparison: Aadhaar, passport, driving license and PAN' in the above paragraph.
Aadhaar registration collects biometric data (face - photo, 10 ngerprint, 2 iris image,
but no identication mark on body) and bare minimum demographic data (proof of identity,
age, residenc e) through enrolment form and documentary proof. Peruse the enrollment form
with data elds on page - 1 and instructions on page -
2. Blood group and proling information
like religion, caste, income, property - holding, education etc. are not collected. Thus Aadhaar
collects lesser demographic data and one different biometric data (iris - image in lieu of body
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identication mark) in comparison to passport.
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 ofce, tax ofce, passport ofce, 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 provide r,
internet services (email, video, social media, search engine, chat, voice, le - storage and
transfer etc.), registration at school/college, post- ofce and courier services, hospital
registration and medical records, visa of US and UK etc. Various visa to Indians of US, UK
and other countries need much more data blood group, ngerprint, height, weight, medical
exam, income details, property-holding, parents date of birth and many other details
In India, government departments, public and private sectors have been using
biometrics (ngerprints and face photo) for years, decades and centuries in some or all
ofces. Examples of ngerprints usage are: Land and building registration (since British era),
Defense departments (ngerprints as service r ecord of civilian as well as service personnel
since British era till now, now also used for access and attendance), Planning Commission of
India (for access and attendance), census ofce (for compulsory NPR), passport, road
transport ofce (for driving license), insurance companies, information technology, BPO and
healthcare companies (for access and attendance), visa of US and UK etc.
Government also knows the movements of people thru the trafc cameras on roads,
vehicle number plate, face recognition etc. Use of electronic devices such as mobile phones,
emails, internet, TV, bank cards provide no privacy. At any moment the Govt. knows of
geographical location of people, what talk is going on phone with whom, what one is reading,
writing or watching on internet, and what TV channel one watches when and for how long (it
is the source of TRP data) thru the service provider. All it is done thru device identiers like
IMEI, IP address, GPS under electronic surveillance. For this reason, Indian Embassies in
London & elsewhere have switched over to mechanical type - writers in 2013 .
There is public private partnership (PPP) model in most services for economy,
efciency and effectiveness in the world. All 200 Passport Seva Kendra (PSK) in India are
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fully operated by the private company (contractor: Tata Consultancy Services) for processing
of passport applications, collecting and verifying personal important documents like proof of
ID, age, address and education, collecting biometric data (face - photo and 10 nger-prints)
and initiating the police verication. Thus private contractor collects our biometric data and
condential personal documents. Similar arrangements are made with private contractors for
income tax identier PAN card (e.g. Bajaj Capitals, Karvy Consultancy and 100 others for
collecting ID, address and age documents), for driving license for collecting biometric data
(e.g. RTO in Karnataka and other states), ration card (e.g. Ration ofce in Karnataka and
other states for collecting biometric data, ID, address and age documents and processing),
voter card (e.g. Bangalore municipal corporation in Karnataka and other states for collecting
ID, address and age documents and processing), speed - post delivery of the India Post that
delivers our passport , PAN and other important and condential documents.
In fact, the technology and process of PAN may be called as privacy violator because
the data access is not consent - based. The PAN number of any person can be obtained
unauthorizedly without the knowledge or consent of the holder from the ofcial website of
the income tax department. One has to just know or guess the name and date of birth to get to
the PAN number of that person without his or her consent. Once the PAN number is
obtained, then any publi c or private agency, nance company, bank, insurance can access
various details of the PAN - holder including the credit history from CIBIL, because from
technological and process perspective, no consent is required to do so unlike Aadhaar. Thus it
is not s afe and secure; and leads to unauthorized access to various nancial data which are
supposed to be condential. Therefore, such PAN based data access are violation of right to
privacy. Whereas for Aadhaar authentication, holder's biometric consent (nger -print) is
required from technological and process perspective to access the Aadhaar demographic data.
Police and other government departments conduct surveillance and crack crimes thru
mobile phones of individuals in all countries of the world. Location of mobile phone holder is
known and call detail records (CDR) is available to government. Therefore, perhaps mobile
phone is the largest violator of privacy. However, the privacy champions do not abandon the
use of mobile phones and internet despite this knowledge.
UIDAI had gone to the Supreme Court in February 2014 against the Bombay High
Court order saying that it does not want to provide access to Aadhaar database for crime
investigations to police or any agency without written consent of the Aadhaar - holder.
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Supreme Court passed the order on 24 March 2014 fully vindicating the UIDAI stand on data
Therefore, like passport, income tax PAN and driving license, Aadhaar does not
violate any privacy or fundamental right.

About Rs. 38 billion (Rs. 3800 crore) has been spent totally on Aadhaar program from
inception (28 January 2009) till 31 December 2013 with enrollment of over 600 million (60
crore) persons. This cumulative expenditure is projected to be Rs. 40 billion (Rs.4,000 crore)
by 31 March 2014. It includes operating costs as well as capital expenditure (infrastructure of
land, building, machinery). Government informed 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. 12,300 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 benet 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.
Tangible benets become visible from 2014. A report of UBS Securities published i n
Jan 2014 shows that Aadhaar - DBT can save up to 1.2% of GDP. GDP of India is $1,800
billion, thus the saving is $22 billion (Rs. 1.32 trillion), which ultimately translates to 33%
savings on overall social security spending.
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 subsidised
Kerosene has been saved from bogus beneciaries in one block in Rajasthan.
Aadhaar -enabled service delivery is about thousands of present and future
applications (hardware, software, processes) of Aadhaar number system. Aadhaar is a 12
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digit identier of Indian residents in the format 1234 5678 9012. It is instantly veriable
online digital identity with consent of the holder. It is assigned to residents of India on
voluntary basis for their lifetime. It is not a proof of citizenship. It guarantees identity only,
not rights, benets or entitlements. Aadhaar number is the pivot for e -governance.
As of April 2014, 51% (62 crore) of the population have been assigned Aadhaar
number and over 60 million bank accounts have been linked with it for direct benet transfer
(DBT) for social security benets across various states.
Authentication service is instantaneous, online and paperless. It is designed to be
secure, auditable, non- repudiable, and consent - based (by biometrics or a one-time password
(OTP)). There are mainly 2 types of authentication with different combinations:
KYC: On consent, the service provider inputs the Aadhaar Number + Demographic
data + Biometric or OTP, and receives Yes or No response from CIDR database server.
E-KYC: On consent, the service provider inputs the Aadhaar Number + Biometric or
OTP, and receives demographic data (photo, name, gender, address, date of birth, mobile
number, email - id i.e. receives digital copy of the Aadhaar letter) from CIDR database server.
Biometric data of re sident is never shared by CIDR.
The authentication data requested and received use encrypted communication from
machine to machine through an application programming interface (API). Following
authentication, the received KYC data is stored in the system of the service provider in the
required format along with audit - track, processed and the service is provided to the customer
It helps prevent identity - fraud and saves considerable cost to service provider on
document management, transportation, storage, processing, penalties, delay in service
activation. Instantaneous service results in customer - satisfaction and increased prots. It is
best suited for obtaining Mobile SIM cards, prepaid bank cards, Instant Insurance etc.
A person can be authenticated anytime - anywhere without any physical ID by using
his or her memorized Aadhaar Number and biometric or One - Time - Password
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Aadhaar -enabled service delivery (AeSD) prevents corruption in retail area by
directly crediting the benet money into beneciary's bank account (called direct benet
transfer DBT). It eliminates the middlemen, duplicates, fake and ineligible beneciaries.
Thus Aadhaar saves public money to the tune of multi -billion rupee annually from the
corrupt, and also enables poor to access various social security benets .
Another type of corruption is in wholesale area the allocation of natural resources
for commercial purpose, e.g. bulk - land, radio spectrum (2G, 3G, 4G), mining of sand, iron
ore, coal -blocks etc. As of now, Aadhaar is not known to prevent the problem of corruption
in whole-sale area.
Prior to Aadhaar, the issues that have been plaguing and derailing all social security
programs in India, were caused by corrupt ofcials and middlemen by manipulating the
paper -records and stand - alone databases of the social security services. Due to lack of unique
identier like Aadhaar, stand - alone databases cannot detect and eliminate duplicate & fake
beneciaries. So the most common modus operandi adopted by these corrupt people have
been to inate the beneciary list 10 times larger, by inserting duplicates and fake people
(imaginary, dead, real person but not eligible). Then steal the 90% of the social security
benets money, thus depriving the deserving poor.
Eligibility check of beneciaries is done by comparing the service delivery database
with other databases. Example: PDS kerosene eligibility check is done by comparing PDS
database with LPG database; and subsidy on kerosene allocation is reduced if LPG subsidy is
detected for that house- hold.
Public Distribution System(PDS) Ration: Inated number of ration cards bogus
ration cards, fake people (imaginary, dead, real person but nor eligible) and duplicates from
other areas. The ration quota of fake people and unused quota by real beneciary is shown as
fully used-up and material is diverted to black market, causing huge subsidy loss of public
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NAREGA: Show small project work as a big one, show inated number of workers
fake people (imaginary, dead, real person but not a worker nor eligible) and duplicates from
other projects.
Social security Pensions Old-age, widow: Show inated number of beneciary
fake people (imaginary, dead, real person but not eligible) and duplicates.
Education Scholarships, mid-day meals: Show inated number of students fake
people (imaginary, dead, real person but not a student nor eligible) and duplicates from other
Telecom Industry: To buy a new mobile phone SIM, a resident submits the photocopy
of his / her identity document for KnowYour Customer (KYC) compliance at an outlet.
Sometimes, multiple photocopies of identity document are made for identity- theft and
misused for issuing SIM fraudulently to many people without documents (e.g. migrant
workers), criminals and terrorists. Innocent identity - holders are harassed by police when such
mobile SIMs are detected in crime. The telecom industry paid the penalty of Rs. 7 Billion in
2010-11 due to fake KYC detected by the Telecom Regulator. Such penalties can be avoided
by using Aadhaar -enabled KYC.
In phase-1, 28 programs were started as AeSD in 43 districts on 01- Jan-2013. In
phase- 2, the social security programs were extended to 78 more districts on 01 - Jul - 2013. The
following savings and benets have been reported since then:
LPG: About 20% fake, duplicate beneciaries have been reported. 20% is billions of
rupees annually for whole of India.
PDS: Millions of fake/ duplicate/ ineligible Rations card reports causing multi - billion
rupees loss annually.
Old-age Pensions: Millions of fake/ duplicate/ ineligible beneciaries causing billions
of rupees losses to public money.

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Financial AeSD
These programs transfer money directly to the Aadhaar - enabled Bank Account
(AeBA) of the beneciaries thru DBT. Examples are payments for social welfare pensions,
scholarships, NREGA wages, health benets, subsidy for LPG, PDS, and Aadhaar - enabled
bank transactions (withdrawal, transfer, balance - check, etc.). AeSD is done by seeding
(linking) the service delivery database with the Aadhaar number, which acts as a primary key
in the database of NPCI. The seeding helps identify the genuine and eligible beneciary, and
prevent duplicates and non- existent (fake, dead) persons. Eligibility of beneciary is applied
based on rules and is cross -checked with other related Aadhaar - enabled databases. Similarly,
the bank account of beneciary is also seeded called Aadhaar - enabled bank account
(AeBA). This approach keeps an excellent audit - track, adds efciency, prevents corruption,
middlemen and delayed payments, eliminates non - existent, duplicate and ineligible
beneciaries. It results in direct benet access to the real eligible people and savings of multi -
billion rupee of the public money annually.
Non-nancial AeSD
It is just an identication service for Know Your Customer (KYC) or Know Your
Resident (KYR). Examples are Proof of Identity, Proof of Age and Proof of Address
required by various service providers such as banks for account opening or conducting
transactions, r enewal or issuance of new passport, driver's license, mobile phone SIM,
vehicle registration at RTO, new LPG connection, new Ration card etc. The service provider
sends consent - based authentication request to UIDAI authentication server and gets back the
reply within 10 seconds as YES or NO.
The AeSD is being implemented in multiple phases across India. Implementation
depends on 5 pre - requisites Aadhaar enrolment, Aadhaar generation (>80% in that district),
bank account of beneciaries, digitization of service delivery database and business process
re-engineering for Aadhaar - enabled payment (AeP). The rst 2 depend on UIDAI, last 3 on
respective state governments. Phase - 1 was started on pilot basis w.e.f. 01-January - 2013 in 43
districts for various AeSD. Phase - 2 started w.e.f. 01 - July- 2013 in another 78, totaling 121
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districts, Andhra Pradesh is the rst state to start AeSD for PDS from January - 2013 in East
Godavari district.
There are many challenges in implementation of the AeSD in public service. Some of
these (observed till Aug - 2013) are:
1. Strong opposition & reluctance by those ofcials and politicians who benet from
2. Digitization of the p ublic service delivery records in appropriate data format,
3. Banking infrastructure in rural areas, like Micro - ATMs, are not setup in sufcient
number as of Aug - 2013,
4. Large number of under - privileged people have no bank account, hence they have no
nancial access (nancial exclusion),
5. Low Aadhaar enrollment in many districts of populous states like Uttar Pradesh,
Bihar, West Bengal, Madhya Pradesh etc.
As of 07-Nov-2013, 550 million have been enrolled, 480 million have been assigned
Aadhaar, out of 1.25 bi llion population.
As of 15-Aug-2013, AeSD started in 121 districts out of total 640 under phase - 1 & 2. A lot
has to be done by the respective State governments to cover all districts.
The AeSD implementations may have political impact after elections of Parliament in 2014.
Lack of awareness among general public to link their bank account and social security
services with Aadhaar for direct benet transfer (DBT).

The Government of India, Reserve Bank of India and the Indian Banks Association
have made the required nancial infrastructures ready for AePS:
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1. National Payments Corporation of India (NPCI) Gateway for Aadhaar - enabled
Payments (AeP) : (Ready)
2. RuPay card - payment service and Saral Money Visa: (Ready)
3. Aadhaar -enabled Bank Accounts with ATM cards : This work is in - progress as India
is a large geography.
4. Appointing sufcient number of Micro - ATM agents in rural areas: This work is in -
Various nancial as well as non - nancial services are being made Aadhaar enabled,
in phased manner. By 1 Jan. 2014, half the population of India (289 districts across various
states) will be covered under DBT for subsidiz ed LPG. By August - 2013, 6.3 million
duplicate connections were detected by Aadhaar- seeding and cancelled. Thus government
saved $1 billion on reduced import by mid-2013.
Following is the list of AeSD. By default, Aadhaar is optional unless stated
compulsor y for a given region only.