Aadhaar Card Issues

Workers, not tech, should be state’s priority


From UPSC perspective, the following things are important :

Prelims level: Aadhaar-Based Payment System (ABPS)?

Mains level: Key challenges related to The Aadhaar-Based Payment System (ABPS)

Why in the news? 

The Aadhaar-Based Payment System (ABPS) has attracted significant attention, mainly because of the many difficulties it encounters

What is Aadhaar-Based Payment System (ABPS)?

  • The Aadhaar-Based Payment System (ABPS) is a unique payment system that utilizes the Aadhaar number as a central key for electronically channelizing government payments

Aim of ABPS

  • Objective: Provide socio-economically deprived households with work security facilitated by digital technology.
  • Rooted in ideals: Inclusion in the development process, mitigation of inequality and socioeconomic distress.
  • Recognition: Internationally recognized, such as by the United Nations Development Programme, for contributing to a productive, equitable, and connected society.

Key challenges related to The Aadhaar-Based Payment System (ABPS):

  • Internet Connectivity Issues: Accessibility to stable internet connections in rural areas poses a challenge for implementing the ABPS effectively.
  • Fingerprint Recognition Problems: The ABPS relies on fingerprint recognition for authentication, but issues with fingerprint recognition can hinder the smooth functioning of the system.
  • Difficulties Faced by the Disabled: The system may not be accommodating to individuals with disabilities, leading to exclusion or difficulties in accessing benefits.
  • Unrecorded Working Days: There are instances where the system fails to record the days of work performed by individuals, leading to discrepancies in payment.
  • Name Duplication: Duplicate entries in the system can lead to confusion and errors in identifying beneficiaries and processing payments.
  • Lack of Awareness: Insufficient awareness among beneficiaries about the ABPS and its processes can result in underutilization or misuse of the system.
  • Errors in Linking and Authentication: Issues may arise during the linking of Aadhaar details with the payment system, leading to authentication errors and payment delays.

Potential of (ABPS) technology 

  • Progressive Principles: Technology has the potential to serve progressive principles globally and historically, contributing to the advancement of societies.
  • Alignment with Sustainable Development Goals (SDGs): Technological interventions can play a crucial role in achieving the SDGs, with rural employment guarantee schemes in India serving as effective pathways towards several SDGs, both directly and indirectly.
  • Effective Utilization of Budgetary Allocation: The substantial budgetary allocation to schemes like MGNREGS should be channeled through a technologically sound system to ensure efficient utilization of funds.


The Aadhaar-Based Payment System faces numerous challenges, highlighting the need for prioritizing workers over technology. While technology holds potential, its alignment with socio-economic goals must ensure inclusivity, efficiency, and effective utilization of resources.

Practice Question for mains 

Examine the objectives, challenges, and potential of the Aadhaar-Based Payment System (ABPS) in India. (150 words )

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