Aadhaar Card Issues

World Bank praises India’s Aadhaar push


Mains Paper 2: IR | Important International institutions, agencies and fora, their structure, mandate

From UPSC perspective, the following things are important:

Prelims level: The Global Findex database

Mains level: The World Bank’s comment on Aadhar proves its importance and efficiency.


Positive statement from the World Bank on Aadhar push

  1. According to the World Bank, India’s “strong government” push to increase account ownership through biometric identification cards helped narrow both the gender gap and the gap between the rich and poor

Particulars of the Global Findex database 2017
(of the World Bank)

  1. According to the datatbase, India has significantly reduced the gender gap in providing access to financial services with 77% women against 83% men having bank accounts
  2. In India three years ago, men were 20 percentage points more likely than women to have an account
  3. Today, India’s gender gap has shrunk to 6 percentage points thanks to a strong government push to increase account ownership through biometric identification cards

Global condition

  1. Globally, 65% of women have an account compared with 72% of men, a gap of seven percentage points that has been unchanged since 2011

Unbanked population in India

  1. The World Bank noted that India has 190 million adults without a bank account despite the success of the ambitious Jan Dhan Yojana, making it the world’s second largest unbanked population after that of China (225 million)

India is setting example of transparency through Aadhar

  1. The world bank gave the example of India on how switching from cash to digital payments can reduce corruption and improve efficiency
  2. According to the bank, in India the leakage of funds for pension payments dropped by 47% (2.8 percentage points) when the payments were made through biometric smart cards rather than being handed out in cash
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