Excel EngineerinExcel Engineering College Interim Report

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INTERIM REPORT

Programme

NATIONAL ID/UID CENTRAL MMP DELIVERING SERVICES

EXCEL ENGINEERING COLLEGE

2013 -14

FOR

BY


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ENGINEERING COLLEGE

INTERIM REPORT OF NeGP MMP

National ID/UIDCentral MMP

Delivering Services

Excel Engineering College

NH 47 , Salem Main Road, Sankari West, Pallakkapalayam-637 303

Komarapalayam, Namakkal DT, Tamil Nadu, India

http://www.excelinstitutions.com/


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Team Members:

Faculties:

S.No Name Dept Mobile Email id1 Prof. G. Sampath Director(T&P) 9842961602 [email protected] S.Koutheesh ECE 9994959269 [email protected] P.Dineshkumar IT 9688837873 [email protected] N.Naveen CSE 9944398884 [email protected]

Students:

S.No Name Department1 Premkumar Electronics and Communication Engineering2 Dinesh.G Electronics and Communication Engineering

3 T.Amarajothi Electronics and Communication Engineering

4 Pradeepa.R Electronics and Communication Engineering

5 Vimal Raj.B.K Electronics and Communication Engineering

6 S.Nivetha Computer Science Engineering

7 K.Gopika Computer Science Engineering8 Nandhini.P Computer Science Engineering

9 Abhijith.C.S Information Technology

10 Ajith T B Information Technology

11 N.Nafisa Parveen Information Technology

12 T.Dhivya Information Technology

13 N.Mythili Information Technology

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Introduction

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 efficiency, 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 classified as

state, central or integrated projects. Within NeGP, "mission mode" implies that projects have

clearly defined 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 define five MMPs specific 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. Pension9. e-Office

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 filed

electronically in FY 2013 -14 as on 31st December 2013.


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UNIQUE IDENTIFICATION NUMBER (UID)

The unique identification project was conceived as an initiative that would provide

identification for each resident across the country and would be used primarily as the basis

for efficient 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 identification was first 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 Identification Number (UID) of the Department of Information

Technology, the Unique Identification Authority of India (UIDAI) was constituted and

notified by the Planning Commission on 28th January, 2009 (vide notification no A-

43011/02/2009-Admn-I) as an attached office 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.

AADHAAR

Aadhaaris a 12 digit individual identification number issued by the Unique

Identification Authority of India on behalf of the Government of India.

This number will serve as a proof of identity and address, anywhere in India.

Any individual, irrespective of age and gender, who is a resident in India and

satisfies the verification process laid down by the UIDAI can enrol for

Aadhaar.


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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

course.

Easily verifiable in an online, cost -effective way

Unique and robust enough to eliminate the large number of duplicate and fakeidentities in government and private databases

A random number generated, devoid of any classification based on caste,

creed, religion and geography

Aadhaaris

1. A 12-digit unique identity for every Indian individual, including children and

infants

2. Enables identification 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

documentation

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 card2. Only one Aadhaar card per family is enough

3. Collects profiling information such as caste, religion, and language

4. Mandatory for every Indian resident who has identification 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 identification 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

applications.

Unique Identification 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.

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 identification

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 theUIDAI will enable 'anytime, anywhere, anyhow' authentication. Aadhaar will thus

give migrants mobility of identity. Aadhaar authentication can be done both offline

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 verification will give poor and rural residents the same flexibility that urban

non-poor residents presently have in verifying their identity and accessing services

such as banking and retail. Aadhaar will also demand proper verification prior toenrolment, while ensuring inclusion. Existing identity databases in India are fraught

with problems of fraud and duplicate or ghost beneficiaries. To prevent these

problems from seeping into the Aadhaar database, the UIDAI plans to enrol residents

into its database with proper verification 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 underprivileged population lack identity

documents and Aadhaar may be the first form of identification 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 identification 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, statisticalinference 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 general, 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

snowflake, 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 fine texture remains stable over many decades. Even blind people can use this

scan technology since iris recognition technology is iris pattern- dependent not sight

dependent.

Iris scanning is an ideal way of biometric identification since the iris is an internal

organ that is largely protected by damage and wear by the cornea. This makes it more

attractive then fingerprints which can be difficult to recognize after several years of certain

types of manual labour.

NATIONAL IDENTIFICATION NUMBER

A national identification 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

benefits, 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 identification 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 identification number. For example, the United States developed

its Social Security number system as a means of disbursing Social Security benefits.

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.

UNIQUE IDENTIFICATION AUTHORITY OF INDIA

The Unique Identification Authority of India (UIDAI), is an attached office of the

Planning Commission of India to issue Unique Identification Number "Aadhaar" to residents

of India who desire to have it. It lacks legal or statutory authority at the present time

Description:

The Unique Identification Authority of India (UIDAI) is an agency of the

Government of India responsible for implementing the Aadhaar scheme, a unique

identification project. The agency, which has no legal backing was established in February

2009, and owns and operates the Unique Identification Number database. The Unique

Identification Authority of India has been established under the Planning Commission for

which a notification has been issued in January 2009. The agency provides a unique

identification 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 Identification 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 first 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".

UIDAI HEADQUARTER ALLOTMENT :

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 trifling price. Currently UIDAI

operates out of offices 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 financially ailing telecoms, BSNL and MTNL, which are locked in a

court dispute.

Aadhaar is the national identification number system of India in the format 1234-

5678-9012. It isa 12-digit digital identity that can be verified 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, benefits or entitlements.

The Aadhaar program is operated by the Unique Identification 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.

Overview:

UIDAI is the Registrar of Identities; that is, it registers, assigns and verifies the unique

identifiers. 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, identification and traceability of transactions. It is supposed

to bring transparency on financial transactions and donations, and to prevent corruption,

money laundering, benami transactions (i.e. under a fictitious name), allocation of natural

resources like land, spectrum, mining of sand, iron ore, coal blocks, etc. A similar identifier is

defined by USA and Europe in ISO 9362 (business identifier code BIC) for international

business transactions (financial and non- financial).

UIDAI stores identities in its main database server called the central identity datarepository (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

begin.

Aadhaar serves the purpose if an Aadhaar holder verbally tel ls the AN and it gets

instantly verified online at the point of service, through KYC or E- KYC process in a

paperless way, which provides high reliability of identity. 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 benefit transfer for various social

security benefits across many states. By 1 January 2014, half the nation (289 districts across

various states) was covered under Aadhaar -DBT for various benefits. 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 fingerprints, 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

day.


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National ID of India was first conceptualised and proposed by the Bhartiya Janata

Party (BJP) before 1998 in view of illegal immigrants and defective distribution of social

security benefits; i.e. prior to forming government at the center under NDA coalition in 1998.

Now and then this topic is discussed by BJP/NDA.

PHYSICAL APPEARANCE

Aadhaar number (AN) is a 12 - digit national identification number. Its format is 1234-

5678-9012 where the first 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 serviceor 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

future.

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,

benefits 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 offline 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 offices 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 thislink. Examples of such offices 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

SMS.

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 outlets in Kerala

state etc. One can find 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 [email protected] 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.

PROPERTIES OF AN

AN is a digital identity, instantly verifiable online at the point of service (PoS), at

anytime, anywhere, in a paperless way. It is assigned only to humans, not to corporate entities

like companies or non-governmental organisations, unlike the identifier 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 benefits, 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

(fingerprint, iris scan and face photo), along with demographic data (name, age, gender,

address, parent/ spouse name, mobile phone number) of a person. AN is portable, free from

limitations of physical presence of a person at a given place. Thus is can be used for casting

vote from anywhere using mobile phone or personal computer, availing social security

benefits from anywhere e.g. drawing PDS ration from any shop etc.

AN also works as a financial address, i.e. it works as a bank account number. This is

designed to help spread low cost, ubiquitous, branchless banking services in rural areascalled micro-ATM, as part of the Financial Inclusion initiative.

AN is valid all over India as a proof of identity, age and address. It is immensely

helpful to migrant workers for employment and social security benefits. In case of change of

personal information (mobile number, residence), the same can be updated with proof at

Aadhaar Kendra, the permanent field - office.

AN is stored in a centralised database (CIDR) and linked to the basic demographics

and biometric information photograph, ten fingerprints and both iris of each individual. It

is verifiable online with the database server (CIDR) instantaneously, at a low cost. It is

portable and robust enough to identify duplicate and fake identities from government and

private databases. It is a randomly generated number, is sparsely populated in the database,

designed not to be guessable, with no associated intelligence, and no profiling information

such as caste, creed, religion or language. Since Aadhaar uses 11- digit for sequence, therefore

it has an address space of 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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AADHAAR VERSUS SSN (USA)

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 wasstarted 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 identification 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.

AUTHENTICATION OF IDENTITIES:

The power of Aadhaar number (AN) vests with its instant, online, consent - based

validation at the point of service (PoS) usin g 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 office 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.

PROCESS

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 fingers 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.

USERS

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 office, income tax

PAN, and telecom service providers (e.g. Vodafone, Reliance etc.).

In order to make financially 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.

PROCESS COMPARISON: AADHAAR, PASSPORT, DRIVING LICENSE AND PAN

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 thesespecial purpose identities for general purpose despite various deficiencies, 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 verified 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.

RATIONALE AND GOALS

To avail social security benefits as well as government - regulated services (e.g. bank

account, insurance, mobile SIM, driving license, vehicle registration etc.); compliance to

Know-Your-Customer (KYC) conditions are mandat ory. The minimum KYC consists of 3

proofs:

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 documents to satisfy minimum KYC.

The Union Government spends Rs. 3,000 billion ($50 billion) on various social

security subsidies (see table below "Social security budget 2013 14"). In addition, various

state governments also spend on specific social security programs. As per various estimates,

about 40% to 85% of social security benefits have been plagued with fictitious and multiple

identities due to lack of standard identity system that is verifiable instantly at the point of

service.


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PROVIDE IDENTITY

Out of 1.25 billion (125 crore) population of India, over 1 billion (100 crore) do not

hold identity documents to satisfy minimum KYC.

There are over 400 million (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 benefits.

The prime objective of Aadhaar is to provide lifetime digital identity which is

verifiable instantly online at the point of service with biometrics in paperless way.

PROVIDE SOCIAL SECURITY BENEFITS

Aadhaar-platform is aimed at providing social security benefits / subsidies based on

eligibility thru direct benefit transfer. It provides access and options to rural and poor people.

It helps bring transparency and eliminate corruption, leakage and inefficiency.

The following table shows financial size of the social security benefits / subsidies

funded by the Union government of India. The table does not cover other programs operatedby various State governments, see Public welfare in India. The social security benefits /

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).

FINANCIAL INCLUSION

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 fingerprint

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 financial inclusion of unbanked, illiterate, and rural

people. Bankcard operates at micro - ATM and other ATMs equipped with fingerprint scanner.

Presently passbook is not issued to these accounts due to infrastructure problem. Transactions

like deposit, withdrawal, transfer, balance -check can be performed. AeBA is used for directpayment of social security benefits such as pensions, scholarships, NREGA wages,

healthcare, subsidy for LPG, kerosene, PDS ration, fertilizers etc.

Generally, a micro- ATM consists of a laptop computer or smart- phone equipped with

2G-internet, fingerprint scanner, receipt- printer, speaker and power backup (solar / battery). It

is human- operated by 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 isused 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 financial inclusion will put stop to unlawful, blood-

sucking money-lending business and the associated social evils.

India is not the first country to implement the banking service for rural and under-

privileged. It is being implemented after studying various banking systems in the world


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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.

AADHAAR-ENABLED SERVICE DELIVERY

Various financial as well as non-financial services are being made Aadhaar-enabled,

called Aadhaar - enabled Service Delivery (AeSD) in phased manner. By1 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 reduced 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 DBT

Aadhaar direct benefit transfer (DBT) is an Aadhaar - enabled financial service used

for direct payment of social security benefits 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 beneficiary, 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 verification thru RASF (Remote Aadhaar Sharing Framework link).

Eligibility of beneficiary 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 efficiency; prevent corruption, middlemen and delayed payments; eliminate

non-existent, duplicate and ineligible beneficiaries. It results in direct benefit access to the

eligible people; and saves multi -billion rupee from corruption annually.


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Tangible benefits 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 onoverall 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.

eGOVERNANCE

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, efficiency and weed out the bogus beneficiaries from social security programs

e.g. social security pensions, scholarships, public health, NREGA, subsidy on PDS ration,

kerosene, LPG etc. Thus Aadhaar is e xpected to save public exchequer from bogus

beneficiaries up to Rs. 1.1 Trillion (Rs. 1,100,000 crore) by the year 2020 as per study report

of National institute of public finance 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 benefits reach the poor people; the remaining 85% are eaten- away by the corrupt

officials and middlemen. Similarly, the World Bank chief said that Aadhaar will h elp

eradicate poverty in India.

The stand-alone databases of social security services can not interact with each other

due to lack of a unique identifier like AN. Thus stand - alone databases do not have ability to

detect and prevent fictitious and ineligible beneficiaries. 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

meal.

PREVENTION OF CORRUPTION

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.

PREVENTION OF IDENTITY FRAUD

Identity frauds such as identity theft (using the identity of another person, dead or

alive) and identity document forgery (fake IDs created on fictitious 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 financial gain or due to compulsion. Identity fraudcommitted for financial 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 ration 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 destroy

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.

GHOST EMPLOYEES

Thousands of fictitious 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 benefits 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 and pension. Some private sector

companies have adopted Aadhaar to avoid such problems.

EXISTING IDS AND PROBLEM AREAS

Traditionally existing IDs in India have been token -based i.e. paper and plastic- based

driving license, passport, PAN card, voter ID etc. None of these IDs have the feature of being

lifetime digital identity that can be verified instantly in public domain at anytime anywhere

for uniqueness and real existence. Moreover, as of 2013, only 150 million hold drivinglicense, 50 million people holdpassport 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 ren ewal. The identification number on these IDs changes with each renewal.

Some IDs are not accepted across states, and people are asked to provide local ID. These IDs

(except voter ID) are generally possessed by urban higher - income group. The rural and poor,

who are largest number, do not possess it. Hence these do not serve the purpose of providing

minimum KYC to a billion people. Others do have some ID yet not sufficient for minimum


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KYC. Women and children of well-to-do families in rural and tribal areas al so generally lack

KYC IDs.

Traditional IDs are not biometric based. Moreover, these plastic or paper - based IDs

are easily reproducible with modified and fake information (such as by scan, super-

imposition and print functions of ubiquitous printers). Thus these easily lead to identity theft

and identity fraud.

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. Atleast 100 million mobile SIMs in India, currently in use, have been procured on identity- theft

and identity -fraud.

The driving license cannot be issued to a person below 18 years. It is not verifiable

online instantly in public domain. Obtaining it is costly and lengthy process for the general

public, and only 150 million hold it. Fake driving licenses also exist.

Obtaining a passport is costly and lengthy process, and only 50 million hold it. It is

not verifiable online instantly in public domain. Fake passports also exist.

Although PAN is issued for the holder's lifetime, yet it is meant only for income tax

payers. It is not verifiable online instantly in public domain. There are only 30 million

income tax payers, yet 170 million PANs have been issued. Obtaining PAN is a costly and

lengthy process, and millions of PAN cards are suspected to have a fake user, fake holder or

fake card due to lack of biometrics and instant verification in public domain. Hence the

Finance Ministry has started linking PAN with Aadhaar 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

verifiable online instantly in public domain. It does not help migrant workers when they

move to another location. Millions of ration cards are either fake or defunct, yet these are

used as ID.


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Voter ID cannot be issued to a person below 18 years. It is not verifiable online

instantly in public domain. Names get deleted from the voter-list from time to time for

various reasons. Voter ID becomes invalid once the name of that serial number is deleted.

Photo and other data on voter ID is generally not clear and jumbled. Millions of fake andbogus voter IDs exist. It is not unique because some persons have multiple. It can be misused

after death of the holder.

PROCESS

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 fingers, 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

verification and final 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.

UIDAI VERSUS NPR

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 Identification Authority of

India (CC UIDAI) has reallocated these four states to UIDAI in February 2014.

STATUS OF AN GENERATION

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 official website of UIDAI.

ACCEPTANCE AND APPLICATIONS

Delhi is the first 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 first 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 fingerprint 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 beneficiaries. In 2013 it saved one billion dollar from fake

beneficiaries.Various state gover nments use it for public welfare programs such as pensions

and scholarships, which has been saving millions from fake beneficiaries. 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 benefits from

anywhere e.g. drawing PDS ration from any shop etc.

EFFECTS

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 officials in those regions now find difficult to continue with corruption in

social security programs like pensions, scholarships, health, NREGA, PDS Ration, subsidised

kerosene and LPG.

Corrupt people are finding difficult to buy and sell benami land and building

(i.e.under fictitious name), to open and operate benami companiesfor money - laundering.

They are also finding difficult to open and operate benami bank accounts for keeping

criminal proceeds. Tax- evaders are finding difficult to evade taxes, and impersonation and

proxy are getting difficult 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 difficult 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 being

saved on their salary, benefits, 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 financial inclusion is taking

place slowly.


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IMPEDANCE

Some people oppose Aadhaar due to unfounded fears and ignorance. The government

officers and police still can access our private data given for banking, tax PAN, passport,voter card, driving license, property registration etc.

POLITICALLY - MOTIVATED OPPOSITION

Some politically motivated people have been opposing Aadhaar. These people ignore

socio-economic benefits brought by the technological marvels of instant and accurate

verification of identity. They seem to oppose it just for the sake of electoral benefit s rather

than better governance and development of Indian society. In addition, the beneficiaries of

corruption are naturally opposed to its anti -corruption properties. Although the parliament has

passed the UIDAI budget five times in five years between 2009 and 2014 and the UIDAI-

2010 bill has been introduced in the parliament, yet there is some opposition.

PENDING BILL

The Union cabinet headed by the Prime Minister of India cleared the National

Identification 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 five times in five years between 2009and 2014. There are plenty of support to Aadhaar with highlighted benefits.

SUPREME COURT

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 fine.

However, the government maintained that it does not deny public services such asLPG at market rate (i.e. non - subsidized). However, Aadhaar will continue to be mandatory


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for receiving social security benefits like subsidy on LPG. Those who do not want social

security benefits can continue without Aadhaar. The Supreme Court made no such statement

that Aadhaar or UIDAI is illegal 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

overstepped.

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.

ILLEGAL IMMIGRANTS

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, identified, 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 benefits of publicservice 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 sufficiently 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 officers 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 deportation can

happen?

PRIVACY CONCERNS

To obtain Indian passport, one has to provide biometric data (face- photo, 10

fingerprint, identification 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 ofalmost all states requires biometric data, education

certificate 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 'Processcomparison: Aadhaar, passport, driving license and PAN' in the above paragraph.

Aadhaar registration collects biometric data (face - photo, 10 fingerprint, 2 iris image,

but no identification 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 fields on page - 1 and instructions on page- 2. Blood group and profiling 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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identification mark) in comparison to passport.

India has a law called Information Technology Act 2000 that protects, together with

other laws, all typesof information including the Aadhaar data from theft and misuse.

Privacy issues and risks equally apply to information and data (with or without

biometrics) provided by people to census office, tax office, passport office, driving license,

vehicle registration, land and building registration, registration of birth, marriage and death,

employers (current, past and prospective), banks, credit card companies, insurance

companies, telephone service provider, television service provider, internet service provider,

internet services (email, video, social media, search engine, chat, voice, file- storage and

transfer etc.), registration at school/college, post-office and courier services, hospitalregistration 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, fingerprint, 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 (fingerprints and face photo) for years, decades and centuries in some or all

offices. Examples of fingerprints usage are: Land and building registration (since British era),

Defense departments (fingerprints 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 office (for compulsory NPR), passport, road

transport office (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 traffic 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 oninternet, 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 identifiers 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,efficiency 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 finger-prints)

and initiating the police verification. Thus private contractor collects our biometric data and

confidential personal documents. Similar arrangements are made with private contractors for

income tax identifier 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 office 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 confidential 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 official 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 public or private agency, finance 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 financial data which are

supposed to be confidential. Therefore, such PAN based data access are violation of right to

privacy. Whereas for Aadhaar authentication, holder's biometric consent (finger -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

privacy.

Therefore, like passport, income tax PAN and driving license, Aadhaar does notviolate any privacy or fundamental right.

BUDGET, COST AND BENEFITS

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 benefit analysis report by National Institute of Public Finance

and Policy shows that Aadhaar- enabled public welfare programs will be able to save Rs. 1.1

trillion (Rs. 110,000 crore) by the year 2020.

Tangible benefits become visible from 2014. A report of UBS Securities published in

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 se curity 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 beneficiaries in one block in Rajasthan.

Aadhaar-enabled service delivery is about thousands of present and futureapplications (hardware, software, processes) of Aadhaar number system. Aadhaar is a 12


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digit identifier of Indian residents in the format 1234 5678 9012. It is instantly verifiable

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, benefits 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 benefit transfer

(DBT) for social security benefits across various states.

AUTHENTICATION

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

immediately.

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 profits. 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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CORRUPTION IN SOCIAL SECURITY PROGRAMS

Aadhaar-enabled service delivery (AeSD) prevents corruption in retail area by

directly crediting the benefit money into beneficiary's bank account (called direct benefit

transfer DBT). It eliminates the middlemen, duplicates, fake and ineligible beneficiaries.

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 benefits.

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 officials and middlemen by manipulating the

paper-records and stand - alone databases of the social security services. Due to lack of unique

identifier like Aadhaar, stand - alone databases cannot detect and eliminate duplicate & fake

beneficiaries. So the most common modus operandi adopted by these corrupt people have

been to inflate the beneficiary 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

benefits money, thus depriving the deserving poor.

Eligibility check of beneficiaries 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.

METHODS OF CORRUPTION:

Public Distribution System(PDS) Ration: Inflated 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 beneficiary is shown as

fully used-up and material is diverted to black market, causing huge subsidy loss of public


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money.

NAREGA: Show small project work as a big one, show inflated 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 inflated number of beneficiary

fake people (imaginary, dead, real person but not eligible) and duplicates.

Education Scholarships, mid-day meals: Show inflated number of students fake

people (imaginary, dead, real person but not a student nor eligible) and duplicates from other

schools.

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.

SAVINGS AND BENEFITS:

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 benefits have been reported since then:

LPG: About 20% fake,duplicate beneficiaries have been reported. 20% is billions ofrupees 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 beneficiaries causing billions

of rupees losses to public money.


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TYPES OF AESD: FINANCIAL AND NON-FINANCIAL

Financial AeSD

These programs transfer money directly to the Aadhaar - enabled Bank Account(AeBA) of the beneficiaries thru DBT. Examples are payments for social welfare pensions,

scholarships, NREGA wages, health benefits, 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 beneficiary, and

prevent duplicates and nonexistent (fake, dead) persons. Eligibility of beneficiary is applied

based on rules and is cross -checked with other related Aadhaar- enabled databases. Similarly,the bank account of beneficiary is also seeded called Aadhaar- enabled bank account

(AeBA). This approach keeps an excellent audit - track, adds efficiency, prevents corruption,

middlemen and delayed payments, eliminates nonexistent, duplicate and ineligible

beneficiaries. It results in direct benefit access to the real eligible people and savings of multi-

billion rupee of the public money annually.

Non-financial AeSD

It is just an identi

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