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3 Mar 2011

Aadhar linked bank accounts : A Novel Venture

This budget 2011 Prananb Mukherjee has tried to kill two birds with one shot and they are now going to offer direct cash transfer as an alternative to subsidies and for this purpose Aadhar-linked bank accounts are being created and it will be a part of Unique Identification Authority of India (UIDAI) scheme. This will remove third party involvement or as a matter of fact of dalals as these accounts would contain the information of the people who are to receive the subsidies. The government would transfer the amount of cash subsidy directly to these accounts to be availed by the beneficiaries. This will ensure that subsidy is being availed by the correct beneficiary and this project is likely to be in place by March 2012.

The UIDAI would be selecting at least 3 banks in each area for the opening of such Aadhar accounts. Banks will also get benefitted as they will be able to penetrate into the rural areas. Thus banks in turn will get more customers and thus more business. Therefore, if Aadhar becomes a reality, then it would be beneficial to all - the government, the customers as well as the banks. Definitely it is a win-win situation for every one.

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