Aadhaar Card Issues
Workers, not tech, should be state’s priority
Note4Students
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.
Conclusion
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
Q Examine the objectives, challenges, and potential of the Aadhaar-Based Payment System (ABPS) in India. (150 words )
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Aadhaar Card Issues
APAAR: One Nation, One Student ID Initiative
Note4Students
From UPSC perspective, the following things are important :
Prelims level: APAAR, One Nation, One Student ID
Mains level: Read the attached storyapaar
Central Idea
- About 25 crore Automated Permanent Academic Account Registry (APAAR) have been created, Union Education Minister informed at a national conference on ‘APAAR: One Nation One Student ID Card.’
What is APAAR?
- What is it? : APAAR serves as a unique identification system for all students across India, commencing from early childhood.
- Lifelong Student ID: Every student is assigned a lifelong 12-digit ID, simplifying the tracking of academic progress from pre-primary education through higher education.
- Gateway to Digilocker: APAAR functions as a gateway to Digilocker, a digital repository where students can securely store crucial documents, including exam results and report cards, for convenient access during future endeavours such as higher education or job applications.
How does APAAR ID function?
- Unique Identification: Each individual receives a unique APAAR ID, linked to the Academic Bank Credit (ABC), a digital repository housing a student’s earned credits throughout their academic journey.
- Seamless Data Transfer: When students change schools, whether within the state or to another state, their data in the ABC is seamlessly transferred to the new school by sharing the APAAR ID, eliminating the need for physical document submission.
- All-Inclusive Repository: APAAR allows students to store certificates and credits from both formal and informal learning experiences, with digital certification from authorized institutions.
Rationale behind APAAR
- Streamlined Education: APAAR’s introduction aims to streamline education processes, reducing the burden on students to carry physical documents.
- NEP 2020 Initiative: This initiative was launched as part of the National Education Policy 2020 by the Ministry of Education.
- Empowering State Governments: APAAR empowers state governments to monitor literacy rates, dropout rates, and educational improvements effectively.
- Combatting Fraud: It seeks to combat fraud and the proliferation of duplicate educational certificates by providing a single, reliable reference for educational institutions, ensuring authenticity through first-party verification.
How to get an APAAR ID?
- Registration Process: To enrol for APAAR, students provide basic details such as name, age, date of birth, gender, and a photograph, all of which are verified using their Aadhar number.
- Aadhar Authentication: The Aadhaar number is used solely for verification purposes to match the name and date of birth, with no sharing of this data during registration.
- Parental Consent for Minors: For minors, parental consent is mandatory for using the student’s Aadhar number for authentication with UIDAI.
- Voluntary Registration: Registration for creating an APAAR ID is voluntary, not mandatory.
Concerns surrounding APAAR
- Data Security Concerns: Parents and students express concerns about sharing their Aadhar details, fearing potential leaks of personal information to external parties.
- Government Assurance: The government assures that shared information will remain confidential and will only be disclosed to entities engaged in educational activities, including UDISE+ (Unified District Information System for Education Plus), scholarships, academic record maintenance, educational institutions, and recruitment agencies.
- Data Control: Students retain the option to cease sharing their information with these entities at any time, with a halt in data processing. However, previously processed data remains unaffected if consent is withdrawn.
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Aadhaar Card Issues
Aadhaar-based pay a bad idea for MGNREGS
Note4Students
From UPSC perspective, the following things are important :
Prelims level: MGNREGS
Mains level: misrepresentation of research findings to support the mandatory implementation of ABPS in MGNREGS
Central Idea:
The Rural Development Ministry mandated Aadhaar-Based Payment Systems (ABPS) in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), despite protests from workers and questionable government claims. The article highlights the complexities of ABPS, the lack of evidence supporting its benefits, and the misrepresentation of research findings that supposedly endorse ABPS. It argues for the continuation of account-based payments in MGNREGS.
Key Highlights:
- ABPS Complexity: ABPS in MGNREGS involves Aadhaar seeding, authentication, and linking to bank accounts, leading to potential glitches causing wage delays and denial of work.
- Government Claims: The government asserted that ABPS would eliminate duplicate job cards, reduce delays, and lower payment rejections, but these claims are questioned.
- Deletion of Job Cards: Officials reportedly deleted job cards under pressure to meet Aadhaar seeding targets, leading to spelling mismatches and exaggerated savings claims.
- LibTech Study: A public research group’s study, cited by the government, found no statistically significant difference in efficiency between ABPS and account-based payments.
- Misrepresentation: The Ministry misrepresented the LibTech study, incorrectly claiming that it endorsed ABPS despite no significant gains.
Key Challenges:
- Technological Glitches: Workers face issues due to errors in Aadhaar seeding, authentication, and bank account linking, causing financial losses and delays.
- Deletion of Job Cards: Job card deletions surged, raising concerns about the accuracy of the process and the pressure to meet Aadhaar seeding targets.
- Misleading Claims: The government’s claims of efficiency gains with ABPS are contradicted by research, indicating a lack of transparency and credibility.
Key Terms and Phrases:
- Aadhaar-Based Payment Systems (ABPS): A payment system using Aadhaar authentication and linking for financial transactions.
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A social security scheme providing rural employment.
- Aadhaar Seeding: Linking Aadhaar numbers with relevant databases, such as job cards and bank accounts.
- Job Card Deletions: Removal of MGNREGS job cards, allegedly driven by the pressure to meet Aadhaar seeding targets.
Key Quotes:
- “Incorrectness in any of the above steps for ABPS means that the worker is denied work, does not receive wages, or is not paid in their preferred account.”
- “In the last two years alone, job cards of over 7 crore workers got deleted.”
- “LibTech’s study is based on a sample of 3.2 crore transactions. The difference was not statistically significant, providing evidence that ABPS is not quicker than account-based payments.”
Key Statements:
- The government’s claims of ABPS benefits lack credibility, with evidence pointing to errors in job card deletions and questionable efficiency gains.
- The misrepresentation of research findings by the Ministry undermines the justification for making ABPS mandatory.
Key Examples and References:
- Research papers in Economic and Political Weekly highlighting errors in job card deletions and the pressure to meet Aadhaar seeding targets.
- The Ministry’s press release misrepresenting the LibTech study’s findings.
Key Facts and Data:
- A 247% increase in job card deletions in FY 2022–23, with over 7 crore workers affected.
- As of January 11, 2024, out of 25.6 crore registered workers, only 16.9 crore are eligible for ABPS.
Critical Analysis:
The article critically examines the complexities and challenges associated with ABPS, questions the government’s claims, and exposes the misrepresentation of research findings to support the mandatory implementation of ABPS in MGNREGS.
Way Forward:
- Advocate for account-based payments in MGNREGS due to the difficulties and glitches associated with ABPS.
- Emphasize the need for transparency, credibility, and evidence-based decision-making in the implementation of payment systems.
- Call for a reevaluation of the decision to make ABPS mandatory, considering the workers’ concerns and the lack of proven benefits.
By addressing these issues, the government can ensure a more efficient and transparent payment system in MGNREGS.
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Aadhaar Card Issues
Concerns of using Aadhaar in Welfare Schemes
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Privacy issues related to Aadhaar
Central Idea
- Moody’s Investor Service released a report titled ‘Decentralised Finance and Digital Assets,’ advocating for decentralized digital identity systems over centralised biometric systems like India’s Aadhaar.
- The report raises concerns about security and privacy vulnerabilities associated with Aadhaar (being managed by Govt of India) and questions its effectiveness.
India’s Response to Moody’s Report
- In response to Moody’s report, the Indian government strongly defended Aadhaar, asserting that it is “the most trusted digital ID in the world.”
- The government highlighted Aadhaar’s integration with the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) database, emphasizing that workers can receive payments without biometric authentication.
Aadhaar: Rationale and Objectives
- Unique Identification: Aadhaar is a unique identification number provided to all Indian residents by the Unique Identification Authority of India (UIDAI). It collects demographic details, biometric fingerprints, and iris scans during enrolment, aiming to create a unique identity for residents.
- Fighting Corruption: Aadhaar’s primary objectives include curbing corruption in accessing welfare programs by eliminating “ghost” and “fake” individuals who fraudulently claim benefits.
Aadhaar’s Role in Welfare Programs
- Ration Distribution: Aadhaar is used to authenticate individuals accessing rations under the Public Distribution System, ensuring that beneficiaries receive their entitled portions.
- Government-to-Citizen Transfers: The government employs Aadhaar for various cash transfer programs, claiming substantial savings by eliminating fraudulent beneficiaries.
Aadhaar in Cash Withdrawals
- Authentication Process: To enable payments through Aadhaar for MGNREGA, three steps are involved: linking Aadhaar to job cards, linking Aadhaar to bank accounts, and linking Aadhaar correctly with the National Payments Corporation of India for payment processing.
- AePS Platform: Aadhaar-enabled Payment System (AePS) allows individuals to withdraw money from Aadhaar-linked bank accounts using biometric authentication.
Concerns Surrounding Aadhaar
- Quantity Fraud: Critics argue that Aadhaar fails to address issues like quantity fraud, where beneficiaries receive less than their entitled share. This type of corruption remains prevalent, with Aadhaar unable to detect or prevent it.
- Authentication Challenges: Rural areas face authentication challenges due to unreliable internet, fading fingerprints, and inadequate phone connectivity for OTPs. Vulnerable groups, such as older women and people with disabilities, face exclusion.
- Lack of Data Transparency: Information regarding authentication attempts and failures is not publicly available, hindering transparency.
- Payment Failures: Errors at any stage of Aadhaar-based payments can lead to payment failures. Mismatches in data between job cards and Aadhaar databases can result in authentication failures.
- Misdirection of Payments: Misdirected payments through Aadhaar are difficult to detect and resolve, creating issues when Aadhaar numbers are linked to the wrong bank accounts.
- Financial Exclusion: Critics argue that Aadhaar-based authentication requirements can lead to financial exclusion for certain groups.
Security Concerns
- AePS Accountability: Banking correspondents using AePS operate without accountability frameworks, leading to potential misuse and unauthorized access to bank accounts.
- Multiple Authentications: Some banking correspondents ask individuals to authenticate multiple times, providing them access to individuals’ bank accounts without consent.
- Fraud and Scams: Several reports highlight instances of money withdrawal and enrollment in government programs without individuals’ knowledge through AePS.
Current Impasse
- Resistance to Mandatory Aadhaar: The government’s efforts to make Aadhaar-based payments mandatory in MGNREGA have faced resistance from workers and field officials.
- Deletion of Job Cards: Reports indicate that the job cards of active rural workers have been deleted on grounds of being “ghosts,” raising concerns about data accuracy.
- Apprehensions: Critics express apprehensions based on their experience with Aadhaar in welfare programs, emphasizing the need for pilots and evidence-based decision-making.
Conclusion
- The debate between centralized biometric systems like Aadhaar and decentralized digital identity solutions remains ongoing, with concerns regarding security, inclusivity, and transparency at the forefront of discussions.
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Aadhaar Card Issues
The concerns of using Aadhaar in welfare
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aadhaar
Mains level: Aadhaar, rationale behind and Concerns with its Use in welfare
What’s the news?
- On September 21, Moody’s Investor Service released a report advocating for decentralized digital identity systems over centralized biometric systems like India’s Aadhaar
Central idea
- India has reacted strongly to the report released by Moody’s Investor Service, which advocates for decentralized digital identity systems over central biometric systems like Aadhaar. The government has refuted the claims made in the report and defended the Aadhaar system as the most trusted digital ID in the world.
What is Aadhaar?
- Aadhaar is a 12-digit unique identification number issued to all Indian residents by the Unique Identification Authority of India (UIDAI).
- It is based on biometric and demographic data, including fingerprints and iris scans, and serves as a standardized and secure means of identity verification.
The Rationale for Aadhaar
- Unique Identification: Aadhaar assigns a unique ID to every Indian resident, ensuring distinct and verifiable identities.
- Corruption Reduction: Aadhaar combats welfare fraud by verifying recipients, reducing ghost and fake beneficiaries.
- Efficient Services: Simplifies access to government services, enhancing efficiency and accuracy.
- Financial Inclusion: Links Aadhaar to bank accounts, promoting banking services in underserved areas.
- Digital Transformation: Enables secure online authentication for e-services, e-commerce, and payments.
- Data Security: Emphasizes data security and privacy measures, including encryption and authentication protocols.
- Integration: Supports government database integration, enhancing governance and policy implementation.
- Welfare Savings: Eliminates duplicates, leading to substantial savings and improved subsidy targeting.
Role in cash withdrawals
- Aadhaar and Job Card Linking: First, a worker’s Aadhaar number must be linked to their job card, which is associated with the employment program, such as MGNREGA.
- Aadhaar and Bank Account Linking: Second, the worker’s Aadhaar must be linked to their bank account. This linkage ensures that the Aadhaar number serves as the unique identifier for transactions related to this account.
- Mapping with NPCI: The Aadhaar number must be correctly linked through the worker’s bank branch with the National Payments Corporation of India (NPCI). The NPCI acts as a clearing house for Aadhaar-based payments.
- Cash Deposits: Once these linkages are established, any cash transferred by the government for benefits or payments gets deposited directly into the individual’s last Aadhaar-linked bank account.
- Cash Withdrawals: Individuals can then withdraw money from their Aadhaar-linked bank account through private banking kiosks or by using private banking correspondents’ point of sale (PoS) machines. These transactions involve biometric authentication to confirm the individual’s identity.
Concerns with Aadhaar’s Use
- Ineffectiveness Against Quantity Fraud: Aadhaar does not address quantity fraud, a prevalent form of corruption in ration distribution, where beneficiaries receive less than their entitled amount. The system focuses on identity verification but lacks mechanisms to prevent this type of fraud.
- Authentication Challenges: In rural areas, authentication can be challenging due to unreliable internet, fading fingerprints, and limited phone connectivity for one-time passwords (OTPs). Multiple trips to ration shops may be necessary, leading to delays and uncertainty.
- Lack of Transparency: The lack of public data on authentication attempts and failures raises transparency and accountability issues. The Comptroller and Auditor General of India (CAG) highlighted the absence of a system to analyze authentication errors.
- Payment Failures: Any error in the Aadhaar-based payment process can result in payment failures. Issues like spelling discrepancies between job cards and Aadhaar databases can lead to authentication failures.
- Coercion and Misdirection: Workers are often coerced into linking their Aadhaar with bank accounts without their consent, leading to wage diversion to unknown accounts. Misdirected payments, such as redirection to Airtel wallets, are challenging to detect and resolve.
- Savings Claims: Claims of government savings through Aadhaar implementation have been questioned by researchers like Jean Drèze, Reetika Khera, Rahul Lahoti, and Anand Venkatnarayanan. They argue that the government’s assertions may be misleading and not supported by data.
- Delays in Wage Payments: Despite government claims of reduced delays in wage payments under MGNREGA due to Aadhaar, recent research using extensive wage transaction data found no statistical evidence of these claims. Insufficient funds were suggested as a primary reason for payment delays
Security Concerns with Aadhaar
- Lack of Accountability: Banking correspondents operating the Aadhaar-enabled Payment System (AePS) often lack a robust accountability framework, raising the risk of misuse or unauthorized access to individuals’ bank accounts.
- Unauthorized Biometric Authentication: Some banking correspondents may ask individuals to undergo multiple biometric authentications, potentially granting them unauthorized access to individuals’ bank accounts.
- Misuse of Aadhaar-Enabled Transactions: Reports and studies have highlighted cases where individuals’ money was withdrawn without consent through AePS, or they were enrolled in government insurance programs against their will.
- Security Breaches: Instances like the ₹10 crore scholarship scam in Jharkhand in 2020 exemplify security breaches and fraudulent activities associated with Aadhaar-based systems.
Way forward
- Data Security and Privacy: Strengthen data security measures to protect Aadhaar information. Ensure strict enforcement of data protection regulations and privacy standards.
- Authentication Reliability: Improve the reliability of biometric authentication, especially in areas with limited connectivity. Develop backup authentication methods.
- Process Streamlining: Simplify the process of linking Aadhaar with bank accounts and other services to reduce errors and misdirected payments. Provide clear information to individuals about the status and usage of their Aadhaar-linked accounts.
- Addressing Corruption: Monitor and evaluate the impact of Aadhaar on reducing corruption in welfare programs. Implement additional measures to tackle specific forms of corruption, such as quantity fraud.
- Independent Research and Evaluation: Support independent research to assess Aadhaar’s effectiveness and impact in various government programs. Use evidence-based findings to make informed policy decisions and improvements.
- Accountability for Misuse: Establish mechanisms for holding individuals or organizations accountable for any misuse of Aadhaar data or fraudulent activities.
Conclusion
- Moody’s report has sparked a debate about the effectiveness and security of Aadhaar. While it has brought some benefits in streamlining welfare programs, it falls short in addressing key issues and poses significant security risks. The government must address these concerns and work towards a more secure and efficient digital identity system, considering decentralized alternatives as suggested by Moody’s.
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Aadhaar Card Issues
Exploring Haryana’s Parivar Pehchan Patra Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Parivar Pehchan Patra
Mains level: Not Much
Central Idea
- The Parivar Pehchan Patra (PPP), introduced in 2020 and rolled out in September 2021 in Haryana, has evoked both attention and criticism.
Parivar Pehchan Patra
- The PPP assigns a unique 8-digit identity number to each family unit residing in Haryana.
- Enrolment in the PPP is obligatory for accessing government services and social security schemes.
- Families can register through Common Service Centers, SARAL Kendras, or registered PPP operators, with verified data collected based on self-declarations and strict procedures.
Key Functions and Linkages
- The PPP streamlines access to various public welfare programs, including subsidized rations, Old Age Samman Allowance, Divyang Pension, educational admissions, government exams, and more.
- It gathers extensive data, encompassing family members’ details, Aadhaar numbers, demographics, educational and occupational information, immovable property ownership, and social status.
Comparing PPP with Aadhaar
- The scheme’s proponents note that PPP leverages Aadhaar’s digital framework but offers a more intricate delivery.
- While Aadhaar focuses on unique identity information, PPP encompasses socio-economic data, validated through specific procedures.
Opposition’s Concerns and Criticisms
- A former CM highlighted data collection errors leading to people being denied subsidies and benefits.
- A legislator raised multiple objections, alleging misuse of data for voter profiling, and criticized the depth of personal information required.
- Concerns were raised about the need for Aadhaar details, caste, PAN card, bank account, and property information. It was asserted that social security doesn’t necessitate caste identification.
- The criticism extended to the potential exploitation of caste-based and socio-economic data for electoral advantages.
Conclusion
- The Parivar Pehchan Patra scheme in Haryana aims to streamline government services and welfare delivery.
- While the initiative offers benefits, concerns about data accuracy, privacy, and potential political manipulation necessitate careful scrutiny and public discourse.
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Aadhaar Card Issues
Integration of NavIC with Aadhaar Enrolment Devices
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NAVIC
Mains level: Not Much
Central Idea
- The Navigation with Indian Constellation (NavIC), India’s indigenous satellite navigation system, is set to be integrated into Aadhaar enrolment devices.
- This strategic move, as revealed by the Department of Space (DoS) showcases the seamless amalgamation of advanced technologies to enhance the functionality and reach of essential services.
What is NAVIC?
- History: Originally conceptualized as the Indian Regional Navigation Satellite System (IRNSS), the project sought to establish an autonomous navigation infrastructure to fulfill both civilian and strategic requirements.
- Reducing Foreign Dependency: The core motivation behind NAVIC was to lessen dependence on foreign navigation systems like GPS and cultivate a self-reliant platform.
- Comprehensive Constellation: The NAVIC constellation encompasses a total of 7** satellites.
- Deployment Chronology: Launches of satellites such as IRNSS-1A, IRNSS-1B, IRNSS-1C, IRNSS-1D, IRNSS-1E, IRNSS-1F, and IRNSS-1I commenced in July 2013, continuing the phased deployment.
Key Features and Technical Excellence
- Standard Position Service (SPS) and Restricted Service (RS): NavIC offers two services – SPS for civilian users and RS for strategic users. These services are available in both L5 (1176.45 MHz) and S band (2498.028 MHz).
- Coverage Area: NavIC covers India and extends up to 1,500 km beyond its borders. Upcoming satellites will include the L1 band compatible with civilian applications.
NavIC and Aadhaar Enrolment Devices
- Field Trials and Technical Expertise: The DoS has successfully conducted field trials and provided technical expertise to finalize the procurement specifications for integrating NavIC into Aadhaar enrolment devices.
- Current Setup: The Aadhaar enrolment kits presently use GPS for location-based services, which gather and authenticate personal information during enrolment.
Utilization in other areas
- Disaster Management: NavIC plays a pivotal role in the National Disaster Management Agency’s alert dissemination system for natural calamities like landslides, earthquakes, floods, and avalanches.
- Ocean Information Broadcast: The Indian National Centre for Ocean Information System employs NavIC to broadcast alerts regarding cyclones, high waves, and tsunamis to fishermen operating in deep-sea regions.
- Standardization Efforts: Various organizations, including the Bureau of Indian Standards (BIS), Telecom Standards Development Society of India (TSDSI), Telecom Engineering Centre (TEC), and international bodies like the International Electrotechnical Committee (IEC), are actively working on setting interoperability standards for NavIC.
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Aadhaar Card Issues
Gaps in Aadhaar-enabled Payment System (AePS) abused by Cybercriminals
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aadhaar-enabled Payment System (AePS)
Mains level: Read the attached story
Central Idea
- Scammers are using silicone thumbs to operate biometric POS devices and ATMs, draining users’ bank accounts.
- Incidents of Aadhaar-linked fingerprint misuse and unauthorized withdrawals have been reported.
What is AePS?
| Details | |
| What is it? | Enables online financial transactions using Aadhaar authentication, eliminating the need for OTPs and other details. |
| Supported transactions | Cash deposit, withdrawal, balance inquiry, and fund transfer can be done with just the bank name, Aadhaar number, and fingerprint. |
| Default activation | AePS may be enabled by default for most bank account holders when Aadhaar is linked to their account. |
| Mandatory linking for benefits and subsidies | Users seeking benefits or subsidies under Aadhaar Act schemes must link their Aadhaar number with their bank account. |
Issues AePS
- Data breaches: These have been reported, although UIDAI denies breaching Aadhaar data.
- Information Leak: Criminals can obtain Aadhaar numbers from photocopies and soft copies, using Aadhaar-enabled payment systems to breach user information.
Securing Aadhaar
- Regulation: UIDAI proposes regulations to prevent sharing of Aadhaar details without redaction.
- New two-factor authentication: This combines finger minutiae and image capture for fingerprint liveness.
- Locking Aadhaar Online: Aadhaar can be locked using the UIDAI website or the myAadhaar app. Locking generates a 16-digit VID code needed for unlocking.
- Zero Liability: Customers’ entitlement to zero liability arises if unauthorized transactions are reported to the bank within three working days.
Way forward
- Immediately lock Aadhaar biometric information if suspicious activity occurs.
- Inform banks and authorities promptly to initiate necessary actions.
- Timely reporting ensures the possibility of returning money transferred fraudulently.
- Regularly check bank accounts for any suspicious activity and inform the banking institution promptly.
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Aadhaar Card Issues
Concerns with linking Aadhaar with Voter IDs
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aadhaar
Mains level: Aadhaar-Voter ID linkage
Central idea: The article discusses the potential issues and concerns related to the Indian government’s proposal to link Aadhaar with Voter IDs.
Total Aadhaar-Voter ID linkages
- Around 60% of India’s electors now have their Aadhaar number linked to their name on the voter rolls.
- It has achieved saturation of over 90% in States like Tripura, which went to the polls recently.
- States like Gujarat and Delhi are lagging where only around 30% of the electorate has provided an Aadhaar number to election officials.
What is the move about?
- The linking is being carried out by filling Form 6B, which is provided by election officials going door-to-door to collect Aadhaar or alternate ID from registered voters.
- The form was the result of the Election Laws (Amendment) Act passed in 2021 to allow the linking of Voter IDs and Aadhaar.
- While the Election Commission (EC) maintains that providing an Aadhaar is optional, Form 6B requires voters to declare that they do not have an Aadhaar to avoid providing the number.
Aadhaar-Voter ID linkage: Why does the government want this?
- Accurate voter’s record: The EC conducts regular exercises to maintain an updated and accurate recordof the voter base.
- Avoid duplicate voters: A part of this exercise is to weed out duplication of voters.
- Identify unique voters: As per the government, linkage of Aadhaar with voter IDs will assist in ensuring that only one Voter ID is issued per citizen of India.
Is the linking of Aadhaar with one’s Voter ID mandatory?
- In December 2021, Parliament passed the Election Laws (Amendment) Act, 2021.
- This was to amend the Representation of the People Act, 1950and Section 23(4) was inserted in the RP Act.
- It states that the electoral registration officerMAY require voters to furnish their Aadhaar numbers to verify Authencity of voters list.
Why there is such proposal for linking?
The preference to use Aadhaar for verification and authentication, both by the state and private sector, stems from few reasons:
- Increase in UID-holders:First, at the end of 2021, 99.7% of the adult Indian population had an Aadhaar card.
- Most versatile document:This coverage exceeds that of any other officially valid document such as driver’s licence, ration cards, PAN cards etc. that are mostly applied for specific purposes.
- Reliable source of authentication:Since Aadhaar allows for biometric authentication, Aadhaar based authentication and verification is considered more reliable, quicker and cost efficient when compared to other IDs.
Issues with mandatory linking: Puttaswamy judgment highlights
- Puttaswamy judgment:The above reasons do not suffice the mandating of Aadhaar except in limited circumstances as per the Puttaswamy judgment.
- Indispensability of the purpose:It needs to be considered whether such mandatory linkage of Aadhaar with Voter ID would pass the test of being “necessary and proportionate” to the purpose of de-duplication which is sought to be achieved.
- Constitutional ambiguity:In Puttaswamy, one of the questions that the Supreme Court explored was whether the mandatory linking of Aadhaar with bank accounts was constitutional or not.
- Against informational autonomy: It is the right to privacy which would allow a person to decide which official document they want to use for verification and authentication.
- Disenfranchisement: Some fear that linking Aadhaar with Voter IDs may exclude certain groups of people, such as those who do not have an Aadhaar card.
Other judicial observations: Lal Babu Hussein (1995) Case
- The Supreme Court had held that the Right to vote cannot be disallowed by insisting only on four proofs of identity.
- The voters are entitled to rely on any other proof of identity and obtain the right to vote.
What are the operational difficulties?
- Aadhaar is not a citizenship proof:The preference to Aadhaar for the purposes of determining voters is puzzling as Aadhaar is only a proof of residence and not a proof of citizenship.
- Excluding non-citizens is not easy:Verifying voter identity against this will only help in tackling duplication but will not remove voters who are not citizens of India from the electoral rolls.
- Estimate of error rates in biometric based authentication:This certainly differs. As per the UIDAI in 2018, Aadhaar based biometric authentication had a 12% error rate.
- Disenfranchisement of existing voters:Errors have led to the disenfranchisement of around 30 lakh voters in AP and Telangana before the Supreme Court stalled the process of linkage.
Key concern: Right to Privacy
- Some civil societies has highlighted that linking of the two databases of electoral rolls and Aadhaar could lead to the linkage of Aadhaar’s “demographic” information with voter ID information.
- This could lead to violation of the right to privacy and surveillance measures by the state.
- This would leave the EC with the option of verifying its information only through door-to-door checks.
- There is a lack of enforceable data protection principlesthat regulate how authentication data will be used.
Way forward
- The govt should expedite the enactment of a data protection legislation that allays concerns of unauthorized processing of personal data held by the government.
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Aadhaar Card Issues
60% of India’s voters linked Aadhaar to voter ID: RTI
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Aadhaar- Voter ID Linkage
Central idea: An RTI query has revealed that around 60% of Indian voters have linked their Aadhaar cards with their voter ID cards.
Benefits of Aadhaar linking
- Voter uniqueness: The move to link Aadhaar and voter ID cards was introduced to prevent electoral fraud and ensure unique identity of each voter.
- Curb bogus votes: It is expected to help prevent multiple voting, impersonation, and bogus voting, which have been a concern in the past.
- Facilitate migrant voting: There have been migrant workers who may have been registered more than once on the electoral rolls in different constituencies or for persons registered multiple times within the same constituency.
Is the linking of Aadhaar with one’s Voter ID mandatory?
- In December 2021, Parliament passed the Election Laws (Amendment) Act, 2021 .
- It states that the electoral registration officer may require voters to furnish their Aadhaar numbers to verify Authencity of voters list.
- This was to amend the Representation of the People Act, 1950 and Section 23(4) was inserted in the RP Act.
Why was such linking proposed?
The preference to use Aadhaar for verification and authentication, both by the state and private sector, stems from few reasons:
- Increase in UID-holders: First, at the end of 2021, 99.7% of the adult Indian population had an Aadhaar card.
- Most versatile document: This coverage exceeds that of any other officially valid document such as driver’s licence, ration cards, PAN cards etc. that are mostly applied for specific purposes.
- Reliable source of authentication: Since Aadhaar allows for biometric authentication, Aadhaar based authentication and verification is considered more reliable, quicker and cost efficient when compared to other IDs.
Issues with mandatory linking: Puttaswamy judgment highlights
- Puttaswamy judgment: The above reasons do not suffice the mandating of Aadhaar except in limited circumstances as per the Puttaswamy judgment.
- The indispensability of the purpose: It needs to be considered whether such mandatory linkage of Aadhaar with Voter ID would pass the test of being “necessary and proportionate” to the purpose of de-duplication which is sought to be achieved.
- Constitutional ambiguity: In Puttaswamy, one of the questions that the Supreme Court explored was whether the mandatory linking of Aadhaar with bank accounts was constitutional or not.
- Against informational autonomy: It is the right to privacy which would allow a person to decide which official document they want to use for verification and authentication.
Other judicial observations: Lal Babu Hussein (1995) Case
- The Supreme Court had held that the Right to vote cannot be disallowed by insisting only on four proofs of identity.
- The voters are entitled to rely on any other proof of identity and obtain the right to vote.
What are the operational difficulties?
- Aadhaar is not a citizenship proof: The preference to Aadhaar for the purposes of determining voters is puzzling as Aadhaar is only a proof of residence and not a proof of citizenship.
- Excluding non-citizens is not easy: Verifying voter identity against this will only help in tackling duplication but will not remove voters who are not citizens of India from the electoral rolls.
- Estimate of error rates in biometric based authentication: This certainly differs. As per the UIDAI in 2018, Aadhaar based biometric authentication had a 12% error rate.
- Disenfranchisement of existing voters: Errors have led to the disenfranchisement of around 30 lakh voters in AP and Telangana before the Supreme Court stalled the process of linkage.
Key concern: Right to Privacy
- Some civil societies has highlighted that linking of the two databases of electoral rolls and Aadhaar could lead to the linkage of Aadhaar’s “demographic” information with voter ID information.
- This could lead to violation of the right to privacy and surveillance measures by the state.
- This would leave the EC with the option of verifying its information only through door-to-door checks.
- There is a lack of enforceable data protection principles that regulate how authentication data will be used.
Way Forward
- Address privacy and security concerns: There should be strict measures in place to ensure the safety of personal information and prevent data breaches.
- Provide alternative authentication: The government should provide alternative methods of identity verification. This will help ensure that no citizen is disenfranchised due to the lack of an Aadhaar card.
- Regular monitoring and evaluation: The government should regularly monitor and evaluate the effectiveness of the linking of Aadhaar and voter ID cards in preventing electoral fraud.
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Aadhaar Card Issues
Concerns around Aadhaar-Voter ID linkage
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aadhaar
Mains level: Data Privacy and Aadhaar
Reports have surfaced online of instances where block level officers have asked individuals to link their Aadhaar with their Voter IDs, failing which their Voter IDs could be cancelled.
What is the news?
- This furore comes in the aftermath of the Election Commission’s (EC) campaign to promote the linkage of Voter ID and Aadhaar that began on August 1.
- In the first ten days since its launch, the campaign saw almost 2.5 crore Aadhaar holders voluntarily submitting their details to the EC.
Aadhaar-Voter ID linkage: Why does the government want this?
- The EC conducts regular exercises to maintain an updated and accurate record of the voter base.
- A part of this exercise is to weed out duplication of voters.
- There have been migrant workers who may have been registered more than once on the electoral rolls in different constituencies or for persons registered multiple times within the same constituency.
- As per the government, linkage of Aadhaar with voter IDs will assist in ensuring that only one Voter ID is issued per citizen of India.
Is the linking of Aadhaar with one’s Voter ID mandatory?
- In December 2021, Parliament passed the Election Laws (Amendment) Act, 2021 .
- This was to amend the Representation of the People Act, 1950 and Section 23(4) was inserted in the RP Act.
- It states that the electoral registration officer may require voters to furnish their Aadhaar numbers to verify Authencity of voters list.
Why is it making headlines now?
- There has been the use of discretionary language throughout the amendments.
- This has been accompanied by assurances that linkage is optional by both the government and the EC.
- Alternative is provided to only who does not have an Aadhaar number.
- To that extent, the limited element of choice that has been incorporated in the amendments seem to be negated or at the very least thrown into confusion.
Why there is such proposal for linking?
The preference to use Aadhaar for verification and authentication, both by the state and private sector, stems from few reasons:
- Increase in UID-holders: First, at the end of 2021, 99.7% of the adult Indian population had an Aadhaar card.
- Most versatile document: This coverage exceeds that of any other officially valid document such as driver’s licence, ration cards, PAN cards etc. that are mostly applied for specific purposes.
- Reliable source of authentication: Since Aadhaar allows for biometric authentication, Aadhaar based authentication and verification is considered more reliable, quicker and cost efficient when compared to other IDs.
Issues with mandatory linking: Puttaswamy judgment highlights
- Puttaswamy judgment: The above reasons do not suffice the mandating of Aadhaar except in limited circumstances as per the Puttaswamy judgment.
- Indispensability of the purpose: It needs to be considered whether such mandatory linkage of Aadhaar with Voter ID would pass the test of being “necessary and proportionate” to the purpose of de-duplication which is sought to be achieved.
- Constitutional ambiguity: In Puttaswamy, one of the questions that the Supreme Court explored was whether the mandatory linking of Aadhaar with bank accounts was constitutional or not.
- Against informational autonomy: It is the right to privacy which would allow a person to decide which official document they want to use for verification and authentication.
Other judicial observations: Lal Babu Hussein (1995) Case
- The Supreme Court had held that the Right to vote cannot be disallowed by insisting only on four proofs of identity.
- The voters are entitled to rely on any other proof of identity and obtain the right to vote.
What are the operational difficulties?
- Aadhaar is not a citizenship proof: The preference to Aadhaar for the purposes of determining voters is puzzling as Aadhaar is only a proof of residence and not a proof of citizenship.
- Excluding non-citizens is not easy: Verifying voter identity against this will only help in tackling duplication but will not remove voters who are not citizens of India from the electoral rolls.
- Estimate of error rates in biometric based authentication: This certainly differs. As per the UIDAI in 2018, Aadhaar based biometric authentication had a 12% error rate.
- Disenfranchisement of existing voters: Errors have led to the disenfranchisement of around 30 lakh voters in AP and Telangana before the Supreme Court stalled the process of linkage.
Key concern: Right to Privacy
- Some civil societies has highlighted that linking of the two databases of electoral rolls and Aadhaar could lead to the linkage of Aadhaar’s “demographic” information with voter ID information.
- This could lead to violation of the right to privacy and surveillance measures by the state.
- This would leave the EC with the option of verifying its information only through door-to-door checks.
- There is a lack of enforceable data protection principles that regulate how authentication data will be used.
What lies ahead?
- Even as the amendments have been made and the EC has launched a campaign for linkage, a writ petition has filed with the Supreme Court challenging the same.
- It challenges the amendments as being violative of the right to privacy.
- The Supreme Court has transferred the writ to the Delhi High Court.
- In the meantime, it is important that the government clarifies through a correction in Form 6B that the linking is not mandatory.
- The govt should expedite the enactment of a data protection legislation that allays concerns of unauthorized processing of personal data held by the government.
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Aadhaar Card Issues
A judicial course that calls for introspection
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 142
Mains level: Paper 2- Implications of Perarivalan case for federalism
Context
The recent decision of the Supreme Court of India in the case of A.G. Perarivalan has stirred up a hornet’s nest.
Use of Article 142 to grant pardon
- The Court has treaded the extraordinary constitutional route under Article 142.
- The Bench decided to exercise the power of grant of pardon, remission et al., exclusively conferred on the President of India and State Governors under Articles 72 and 161.
- Against the separation of power: Against the background of separation of powers viz. Parliament/Legislature, Executive and Judiciary, whether the course adopted by the Bench to do expedient justice is constitutional calls for introspection.
Evaluating the constitutionality of decision
- The power under Article 161 is exercisable in relation to matters to which the executive power of the state extends.
- Discretionary power under Article 161: Article 161 consciously provides a ‘discretion’ to the Governor in taking a final call, even if it was not wide enough to overrule the advice, but it certainly provides latitude to send back any resolution for reconsideration, if, in his opinion, the resolution conflicted with constitutional ends.
- In Sriharan’s case (2016 (7) SCC P.1), one of the references placed for consideration was whether the term ‘consultation’ stipulated in Section 435 Cr.P.C. implies ‘concurrence’.
- It was held that the word ‘consultation’ means ‘concurrence’ of the Central government.
- The Constitution Bench highlighted that there are situations where consideration of remission would have trans-border ramifications and wherever a central agency was involved, the opinion of the Central government must prevail.
- Basing its conclusion on the legal position that the subject matter (Section 302 in the Indian Penal Code) murder, falls within Lists II and III (State and Concurrent lists) of the Seventh Schedule to the Constitution, the learned judges concluded that the State was fully empowered to take a call and recommend remission in this case.
- If it is a simple case of being a Section 302 crime, the reason for finding fault with the Governor’s decision to forward the recommendation to the President may be constitutionally correct.
- But the larger controversy as to whether the Governor in his exercise of power under Article 161 is competent at all, to grant pardon or remission in respect of the offences committed by the convicts under the Arms Act, 1959, the Explosive Substances Act, 1908, the Passports Act, 1967, the Foreigners Act, 1946, etc., besides Section 302, is not certain.
- According to the decision, it is a simple murder attracting Section 302 of the IPC and therefore the Governor’s decision to forward the recommendation to the President is against the letter and spirit of Article 161 — meaning it is against the spirit of federalism envisaged in the Constitution.
- Constitutionality use of Article 142: There are momentous issues that are flagged on the exercise of the power of remission under Article 142, by the Supreme Court in the present factual context.
- The first is whether Article 142 could be invoked by the Court in the circumstances of the case when the Constitution conferred express power on the Governor alone, for grant of pardon, remission, etc., under Article 161.
Way forward
- Deeper judicial examination: Whether what the State government could not achieve directly by invoking Sections 432 and 433 of Cr.P.C, without concurrence of Centre could be allowed to take a contrived route vide Article 161 and achieve its objectives is a pertinent issue.
- This aspect requires deeper judicial examination for the sake of constitutional clarity.
- Timeframe for the Governor: The Constitution does not lay down any timeframe for the Governor to act on the advice of the Council of Ministers.
- In any event, even if the delay was constitutionally inexcusable or was vulnerable to challenge, the final arbiter of the Constitution (Article 245) could not have trumped Article 161 with Article 142, which is constitutionally jarring.
Conclusion
To portray the remission as to what it was not in the State is a sad fallout the lawlords on the pulpit may not have bargained for. And on the constitutional plane, this verdict deserves a relook, even a review, as it stands on wobbly foundations built with creaky credence.
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Aadhaar Card Issues
Questioning the Safety of Aadhaar
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aadhaar and its minuscles
Mains level: Data Privacy and Aadhaar
Two days after issuing an advisory asking people to refrain from sharing photocopies of their Aadhaar Card, the Unique Identification Development Authority of India (UIDAI) opted to withdraw the notification.
UIDAI Advisory
- The withdrawn notice had suggested holders use a masked Aadhaar card instead of the conventional photocopy.
- It added that the document must not be downloaded from a cybercafe or public computer and if done for some reason, must be permanently deleted from the system.
- Private entities like hotels or film halls cannot collect or keep copies of the identification document.
What is Masked Aadhaar?
- ‘Masked Aadhaar’ veils the first eight digits of the twelve-digit ID with ‘XXXX’ characters.
- The notice informed that only entities possessing a ‘User Licence’ are permitted to seek Aadhaar for authentication purposes.
Why in news now?
- In July 2018, Telecom Regulatory of India’s Chairman tweeted his Aadhaar number challenging users to “cause him any harm”.
- In response, users dug up his mobile number, PAN number, photographs, residential address and date of birth.
- UIDAI dismissed assertions of any data leak, arguing that most of the data was publicly available.
- It did however caution users from publicly sharing their Aadhaar numbers.
Security of Aadhaar: What does the law say?
- The Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act, 2016 makes it clear.
- Aadhaar authentication is necessary for availing subsidies, benefits and services that are financed from the Consolidated Fund of India.
- In the absence of Aadhaar, the individual is to be offered an alternate and viable means of identification to ensure she/he is not deprived of the same.
- Separately, Aadhaar has been described as a preferred KYC (Know Your Customer) document but not mandatory for opening bank accounts, acquiring a new SIM or school admissions.
- The requesting entity would have to obtain the consent of the individual before collecting his/her identity.
- The entity must ensure that the information is only used for authentication purposes on the Central Identities Data Repository (CIDR).
What is CIDR?
- This centralised database contains all Aadhaar numbers and holder’s corresponding demographic and biometric information.
- UIDAI responds to authentication queries with a ‘Yes’ or ‘No’.
- In some cases, basic KYC details (as name, address, photograph etc.) accompany the verification answer ‘Yes’.
- The regulator does not receive or collect the holder’s bank, investment or insurance details.
Protection of confidentiality
- The Act makes it clear that confidentiality needs to be maintained and the authenticated information cannot be used for anything other than the specified purpose.
- More importantly, no Aadhaar number (or enclosed personal information) collected from the holder can be published, displayed or posted publicly.
- Identity information or authentication records would only be liable to be produced pursuant to an order of the High Court or Supreme Court, or by someone of the Secretary rank or above in the interest of national security.
Is identity theft via Aadhaar possible?
- As per the National Payment Corporation of India’s (NCPI) data, ₹6.48 crore worth of financial frauds through 8,739 transactions involving 2,391 unique users took place in FY 2021-22.
- Since the inception of the UID project, institutions and organisations have endowed greater focus on linking their databases with Aadhaar numbers.
- This include bank accounts especially in light of the compulsory linkage for direct benefit transfer schemes.
Structural problems with UIDAI
- The Aadhaar Data Vault is where all numbers collected by authentication agencies are centrally stored.
- Comptroller and Auditor General of India’s (CAG) latest report stipulated that UIDAI has not specified any encryption algorithm (as of October 2020) to secure the same.
- There is no mechanism to illustrate that the entities were adhering to appropriate procedures.
- Further, UIDAI’s unstable record with biometric authentication has not helped it with de-duplication efforts, the process that ensures that each Aadhaar Number generated is unique.
- The CAG’s reported stated that apart from the issue of multiple Aadhaars to the same resident, there have been instances of the same biometric data being accorded to multiple residents.
Conclusion
- The CAG concluded it was “not effective enough” in detecting the leakages and plugging them.
- Biometric authentications can be a cause of worry, especially for disabled and senior citizens with both the iris and fingerprints dilapidating.
- Though the UIDAI has assured that no one would be deprived of any benefits due to biometric authentication failures.
- The absence of an efficient technology could serve as poignant premise for frauds to make use of their ‘databases’.
Try this PYQ:
Q.Consider the following statements:
- Aadhaar metadata cannot be stored for more than three months.
- State cannot enter into any contract with private corporations for sharing of Aadhaar data.
- Aadhaar is mandatory for obtaining insurance products.
- Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.
Which of the statements given above is/are correct?
(a) 1 and 4 only
(b) 2 and 4 only
(c) 3 only
(d) 1, 2 and 3 only
Post your answers here.
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Aadhaar Card Issues
PAN, Aadhaar made mandatory for high-value cash deposits & withdrawals
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cap on cash withdrawal
Mains level: Tax evasion
The government has made requirement of a Permanent Account Number (PAN) or Aadhaar number for depositing or withdrawing Rs 20 lakh or more in a financial year or for opening a current account mandatory.
Regulating high-value transactions
- The Central Board of Direct Taxes, in a notification, said furnishing PAN or biometric Aadhaar will be mandatory for such high-value cash deposits or withdrawals from banks in a financial year.
- The same will be applied for opening of a current account or cash credit account with a bank or post office.
- Banks, post offices and co-operative societies would be required to report the transactions of deposits and withdrawals aggregating to Rs 20 lakh or more in a financial year.
- As of now, PAN is required to be furnished for cash deposits of Rs 50,000 or more in a day.
- With these rules, a threshold of Rs 20 lakh has been defined for the full financial year.
How will this help tax department?
- This move will help the government in tracing the movement of cash in the financial system.
- It is expected to help the income tax department monitor deposits/withdrawals where tax would not be getting paid by the individual otherwise on his or her income.
Why PAN-Aadhaar interoperability?
- The PAN-Aadhaar interoperability will help banks to record details for those who don’t have PAN.
- The interchangeable provision in the rules would allow a bank or financial institution to ask for Aadhaar in case an individual states that he or she doesn’t have PAN.
- The Finance Act, 2019, has provided for the interchangeability of PAN with Aadhaar.
- It has been provided that every person who is required to furnish or intimate or quote his PAN under the Income-tax Act.
- Those who, has not been allotted a PAN but possesses the Aadhaar number, may furnish or intimate or quote his Aadhaar in lieu of PAN.
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Aadhaar Card Issues
Election Laws (Amendment) Bill, 2021
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Election Laws (Amendment) Bill, 2021
Mains level: Issue over Mandatory Aadhaar
The Election Laws (Amendment) Bill, 2021 that seeks to link electoral rolls to the Aadhaar number has been listed for introduction in the Lok Sabha.
Key Provisions of the Election Laws (Amendment) Bill 2021
(1) Aadhaar authentication:
- The Bill seeks to empower electoral officers to seek Aadhaar number of people, who want to register as voters, for establishing their identity.
- It also seeks to allow the electoral registration officers to ask for Aadhaar numbers from persons already included in the electoral roll for the purposes of authentication of entries in the electoral roll.
- This would also aim to identify registration of the name of the same person in the electoral roll of more than one constituency or more than once in the same constituency.
(2) Aadhaar linking with Voter ID
- Linking Aadhaar with voter ID will be voluntary.
- The amendment makes it clear that no application shall be denied and no entries in the electoral roll shall be deleted for the inability to produce Aadhaar number.
- Such people will be allowed to furnish other documents as may be prescribed.
(3) Amendments to the RP Act for new voter registration
- Section 23 of the RP Act, 1950 will be amended to allow linking of electoral roll data with the Aadhaar ecosystem to curb the menace of multiple enrolments.
- Amendment to section 14 of the RP Act, 1950 will allow having four qualifying dates for eligible people to register as voters, instead of one that is January 1 at present.
- As of now, people who turn 18 on or before January 1 can register as voters but those turning 18 after January 1 wait for the whole year to get registered.
- The Bill proposes to make the 1st day of January, 1st day of April, 1st day of July, and 1st day of October as the qualifying dates.
(4) Imbibing gender neutrality
- An amendment to section 20 of the RP Act, 1950 and section 60 of the RP Act, 1951 seeks to make the elections gender-neutral for service voters.
- The amendment will also replace the word ‘wife’ with ‘spouse’ to make the statutes gender-neutral.
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Aadhaar Card Issues
Privacy concerns over Haryana’s Parivar Pehchan Patra
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Parivar Pehchan Patra
Mains level: UID and privacy issues
Amid concerns over the Parivar Pehchan Patra scheme, the Haryana govt. says enrolment is voluntary. But residents have little choice as the delivery of even birth and death certificates is linked to it.
Practice question for mains:
Q.What is Parivar Pehchan Patra (PPP) recently rolled out by Haryana Govt.? How it is beneficial compared to the Aadhaar?
What is Parivar Pehchan Patra (PPP)?
- It is an 8-digit Unique Identity Card number meant for each family to enable smooth and automatic delivery of several citizen-centric services.
- The government will establish the scheme-wise eligibility of a particular family using this 8-digit code according to the information available in the PPP of the family.
- The benefits, according to the schemes, shall automatically be transferred to the family using the same code.
- PPP will ensure that not a single beneficiary is left out from the government benefits that they are entitled to.
How is PPP different from the Aadhaar card?
- The PPP, mathematically, is an integral number of Aadhaar.
- While Aadhaar represents an individual as a unit, a PPP represents a family as a unit. Most of our government schemes are structured around the family.
- It is not structured around an individual.
- For example, ration eligibility is there for the family but the family can split it into various members as long as they are above 18 years and say they are separating entitlements for all individuals.
Will it be mandatory for every family of Haryana to get PPP?
- No, it will not be mandatory for every family of the state to obtain a PPP.
- But, PPP is mandatory for families availing benefits under government schemes.
- Also, whenever a family wants to avail any government scheme, it will have to first get a PPP to be eligible.
The logic behind
- Haryana officials said although there is a union government’s Aadhaar card, it contains individual’s details and does not cater to the entire family as a unit.
- In certain circumstances, it may not be possible for a state government to keep track of all the families residing in the state.
- Although the ration card system is there, it is not updated and does not contain adequate family records.
- With the PPP, it will be easier for the state government to maintain a complete database of all the state dwellers.
How would it work?
- To begin with, the government has already linked PPP with three social security schemes – old age Samman allowance, divyang pension, and the widow and destitute women pension scheme.
- For instance, when a family member turns 60, they will automatically get a message through the software and will automatically start getting benefits of the old-age pension if they meet the required criteria.
- Similarly, the teenagers will get messages on turning 18 years old and shall become eligible for various government schemes that will be notified to them through the software.
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Aadhaar Card Issues
Supreme Court dismisses Aadhaar Review Petition
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Money Bill , Art 110
Mains level: Aadhaar-Money Bill Issue
The Supreme Court, in a majority view (4:1), dismissed a series of petitions seeking a review of its 2018 judgment upholding the Lok Sabha Speaker’s certification of Aadhaar law as a Money Bill and its subsequent passage in Parliament.
Try this PYQ:
Consider the following statements:
- Aadhaar card can be used as a proof of citizenship or domicile.
- Once issued, Aadhaar number cannot be deactivated or omitted by the Issuing Authority.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Backgrounder
- The review petitions had highlighted how the Aadhaar Act was passed as a Money Bill by superseding the Rajya Sabha. It was called a “fraud on the Constitution”.
- The review petition had argued that the Aadhaar Act clearly did not fall within the ambit of Article 110 (1) of the Constitution, which restricted Money Bills to certain specific fields only.
What is a Review Petition?
- Article 137 of the Constitution provides that subject to provisions of any law and rule made under Article 145 the Supreme Court of India has the power to review any judgment pronounced (or order made) by it.
- Thus the binding decision of the Supreme Court/High Court can be reviewed in the Review Petition.
Aadhaar Case: Two questions for review
- Two questions had come up for review regarding the five-judge Aadhaar Bench’s judgment in 2018.
- One, whether the Speaker’s decision to declare a proposed law as Money Bill was “final” and cannot be challenged in court.
- The second, whether the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 was correctly certified as a ‘Money Bill’ under Article 110(1) of the Constitution.
What is the majority Judgment?
- On the first question, the majority judgment in 2018 said the Speaker’s decision could be challenged in court only under “certain circumstances”.
- On the second, it concluded that the Aadhaar Act was rightly called a Money Bill.
Back2Basics: Money Bill
- A Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, expenditure from or receipt to the Consolidated Fund of India.
- Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.
- A Money Bill may only be introduced in Lok Sabha, on the recommendation of the President as per Article 110 of the Constitution.
- Then, it is transmitted to the Rajya Sabha for its recommendations. Following this, it may be sent to the Rajya Sabha for its recommendations, which Lok Sabha may reject if it chooses to.
- If such recommendations are not given within 14 days, it will be deemed to be passed by Parliament.
How is a Money Bill different from a financial bill?
- While all Money Bills are Financial Bills, all Financial Bills are not Money Bills.
- For example, the Finance Bill which only contains provisions related to tax proposals would be a Money Bill.
- However, a Bill that contains some provisions related to taxation or expenditure, but also covers other matters would be considered as a Financial Bill.
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Aadhaar Card Issues
What is Parivar Pehchan Patra (PPP)?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PPP
Mains level: Aadhaar and its limitations
Haryana CM Manohar Khattar has distributed ‘Parivar Pehchan Patra’ to the eligible families and announced that welfare schemes of all departments would be linked with the PPP within the next three months.
Practice question for mains:
Q.What is Parivar Pehchan Patra (PPP) recently rolled out by Haryana Govt.? How it is beneficial compared to the Aadhaar?
What is Parivar Pehchan Patra (PPP)?
- It is an 8-digit Unique Identity Card number meant for each family to enable smooth and automatic delivery of several citizen-centric services.
- The government will establish the scheme-wise eligibility of a particular family using this 8-digit code according to the information available in the PPP of the family.
- The benefits, according to the schemes, shall automatically be transferred to the family using the same code.
- PPP will ensure that not a single beneficiary is left out from the government benefits that they are entitled to.
How is PPP different from the Aadhaar card?
- The PPP, mathematically, is an integral number of Aadhaar.
- While Aadhaar represents an individual as a unit, a PPP represents a family as a unit. Most of our government schemes are structured around the family.
- It is not structured around an individual.
- For example, ration eligibility is there for the family but the family can split it into various members as long as they are above 18 years and say they are separating entitlements for all individuals.
Will it be mandatory for every family of Haryana to get PPP?
- No, it will not be mandatory for every family of the state to obtain a PPP.
- But, PPP is mandatory for families availing benefits under government schemes.
- Also, whenever a family wants to avail any government scheme, it will have to first get a PPP to be eligible.
The logic behind
- Haryana officials said although there is a union government’s Aadhaar card, it contains individual’s details and does not cater to the entire family as a unit.
- In certain circumstances, it may not be possible for a state government to keep track of all the families residing in the state.
- Although the ration card system is there, it is not updated and does not contain adequate family records.
- With the PPP, it will be easier for the state government to maintain a complete database of all the state dwellers.
How would it work?
- To begin with, the government has already linked PPP with three social security schemes – old age Samman allowance, divyang pension, and the widow and destitute women pension scheme.
- For instance, when a family member turns 60, they will automatically get a message through the software and will automatically start getting benefits of the old-age pension if they meet the required criteria.
- Similarly, the teenagers will get messages on turning 18 years old and shall become eligible for various government schemes that will be notified to them through the software.
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Aadhaar Card Issues
Aadhaar, no standout performer in welfare delivery
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Aadhaar- how it has fared so far?
Context
Aadhaar-based biometric authentication did not reduce PDS leakages, finds Jharkhand-based empirical study
What was the rationale behind Aadhaar?
- What did the UIDAI’s report say? Aadhaar has curtailed leakages of government subsidies. Through Aadhaar, savings worth ₹90,000 crores have accrued to the government– UIDAI’s2017-18 annual report.
- Plugging the leakages in the schemes: When Aadhaar was conceived a decade ago, the rationale postulated was: India spends nearly three trillion rupees a year across several core welfare programmes such as Public Distribution System (PDS), LPG, Mahatma Gandhi National Rural Employment Guarantee Act etc.
- Huge leakage due to duplications: Roughly 30-40% of this three trillion is lost in leakages.
- Leakages are largely due to ‘ghost’ and ‘duplicate’ beneficiaries using fake identities to avail these benefits; a unique identity biometric scheme can eliminate these leakages and vastly improve efficiency in welfare delivery.
- Improve welfare delivery efficiency: In fact, the former Union Minister, Arun Jaitley, even renamed the Aadhaar Bill to ‘Targeted Delivery of Financial and other Subsidies, Benefits and Services’ Bill, making it amply clear that Aadhaar’s primary, if not sole purpose, was to improve welfare delivery efficiency.
What are the findings of study?
- How was the study carried out?
- Use of RCT and sample of 15 million people: They conducted a scientifically designed study of the PDS system in Jharkhand covering 15 million beneficiaries using the technique of randomised control trials (RCT).
- In the study, one set of beneficiaries went through the Aadhaar-based biometric authentication while the other group used the old system of procuring their ration.
- The results were then compared to see if Aadhaar-based biometric authentication had any impact in reducing leakages.
- What were the findings of the study?
- No measurable benefit: The study concluded that Aadhaar-based biometric authentication had no measurable benefit.
- No reduction in leakages: Aadhaar-based biometric authentication did not reduce leakages due to elimination of ghosts and duplicates, as widely perceived.
- Increase in transaction costs for beneficiary: On the other hand, they found that Aadhaar-based biometric authentication increased transaction costs for beneficiaries.
- 17% extra cost: That is, to claim ration worth ₹40, beneficiaries in the Aadhaar system incurred an additional ₹7 of costs than those in the old system, because of multiple trips to authenticate themselves and the opportunity cost of time spent.
- This is a whopping 17% extra cost burden of the value of the benefit they were entitled to receive.
- Type 1 error of exclusion: To make matters worse, Aadhaar-based biometric authentication also introduced what empirical scientists call Type I error of exclusion.
- Aadhaar authentication falsely rejected genuine PDS beneficiaries who were then denied their ration supplies.
- The study finds that nearly 10% of legitimate beneficiaries were denied their ration either because they did not have their Aadhaar linked to their ration card or due to an exclusion error.
- Summary of the finding: In summary, the study states that there was-
- No direct impact of Aadhaar in reducing leakages.
- 2. It denied ration to 10% of genuine beneficiaries and increased costs by 17% to those that were forced to get their ration using Aadhaar.
- Pain with no gain: They conclude that Aadhaar authentication for PDS in Jharkhand caused “some pain with no gain”.
What premises were wrong about Addhaar?
- No testing of empirical belief: There was a widespread belief among the policy elite that ghosts and duplicates were the scourge of India’s welfare delivery and that Aadhaar would eliminate this.
- But this belief was never empirically tested.
- Based on this belief, an entire story was concocted about improving welfare efficiency by eliminating ghosts and duplicates with Aadhaar and a whole new law was enacted to this effect.
- The pilot project not carried out: Many studies now establish that ghosts and duplicates are not the significant cause of leakages.
- It would have been better to have undertaken a robust pilot project of scale to test the belief about ghosts and duplicates, before embarking on it nationwide.
Conclusion
In a sociologist’s world and in a liberal society, a policy that could run the risk of denying welfare to just a few people, putting their lives at risk, is not worth implementing regardless of how many millions it benefits.
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Aadhaar Bill 2016, Hopes and Concerns
Basics of Aadhaar
Aadhaar is an ambitious project that seeks to provide unique identification numbers to each individual in a country, collecting demographic and biometric information in the process. Currently, UIDAI has issued over 98 crore Aadhaar numbers.
Need for Aadhaar: India must use technology in a transformational way to accelerate social and economic justice. It will help in expansion of opportunities for all at scale and speed.
What is the Aadhaar Bill?
Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016, has been passed by Parliament, to provide for efficient, transparent, and targeted delivery of subsidies, benefits and services.
It will enable the govt. to reset the subsidy regime and deliver state benefits directly to their intended beneficiaries, plugging leakages.
How Aadhar is linked with DBT?
India spends nearly Rs. 4 lakh crore on subsidies, in order to complement the political democracy with socio-economic democracy.
On January 1, 2013, the UPA govt launched the Direct Benefit Transfer scheme under which monetary benefits would be transferred directly to the beneficiaries through an Aadhaar-enabled platform.
The effort to channelize subsidies, benefits and services to through a 12-digit number or to say its biometric alternative can help plug the leakages in the subsidy framework and give a boost to the Jan Dhan Yojna, which remains closely aligned to this scheme.
Follow our story on Direct Benefits Transfer: The Big Reform.
Do read the Economic Survey chapter on JAM Trinity.
What are the concerns on Privacy front?
There are certain provisions in the Bill, that provide avenues for surveillance of citizens. A person’s Aadhaar number can become a standard data point in all business, banking and legal transactions. Our data systems are not secure and watertight. The people who maintain these systems are vulnerable to pressures and inducements.
- The issue of privacy vs. security is a hot subject around the world, evident in the current controversy in Apple Inc.’s refusal to break the encryption on an iPhone as demanded by FBI
- Sceptics argue that no other country, and certainly no democratic country, has ever held its own citizens hostage to such a powerful infrastructure of surveillance
- Govt. accepts right to privacy as a valuable right, but questions it as a fundamental right
- In 1954, a 8-judge bench of SC had ruled that right to privacy cannot be a fundamental right. But, some judgments post-1990 noted that right to privacy can be construed as fundamental right, subject to certain restrictions and circumstances
However, there are other concerns of exclusion, by denying the services to people who didn’t enroll for it or chose not to do it.
Safeguards
According to Nandan Nilekani, the Bill had incorporated several safeguards with regard to privacy as highlighted by the A.P. Shah Committee report, on privacy law.
There are other provisions in this Bill that seem to address the concern:
- The unique numbers will not be considered as proof of citizenship
- The Aadhar system ensures privacy through design, as it uses a federated architecture. In other words, as banking data is wholly inside the banking system, similarly, the biometric data is never shared by UIDAI
- The core bio-metric information cannot be shared with any person even with the consent of the Aadhaar card holder. Even, the general information cannot be unlawfully shared
- Only a Court of the District Judge or above has been given the power to order disclosure of information excluding core biometrics
- “National Security” is the only ground on which a Competent Authority can share this information. Every decision of the Competent Authority has to be reviewed by a Committee comprising of the Cabinet Secretary, the Law Secretary and the Secretary, Information Technology before it is given effect
What was Supreme Court’s stand on Aadhaar?
In 2013, the Supreme Court ruled that Aadhaar could not be made mandatory to receive benefits. No one should be excluded from social welfare scheme, just because of a requirement of Aadhar.
In 2015, It also prohibited the sharing the Aadhaar information with any agency. The case was referred to a larger bench to decide the question whether Aadhaar infringed the right to privacy.
What is Aadhaar Bill versus Money Bill controversy?
According to experts, the Bill was not a money Bill under Article 110 of the Constitution because it did not “contain ONLY provisions” dealing with the matters enumerated in that Article. Various Constitutional experts have argued that the Speaker’s decision to certify it as a money Bill was also plainly wrong.
Do you want to know about Money Bill?
As per Article 110(1), a bill that contains only provisions dealing with the following qualifies as a money bill:
- The imposition, abolition, remission, alteration or regulation of any tax
- Regulation of borrowing or the giving of any guarantee by the govt of India, or undertaking financial obligation by the government
- The custody of the Consolidated Fund of India or the Contingency Fund of India, the payment of moneys into or withdrawal from them
- The appropriation of moneys out of the CFI
- Declaring any expenditure as a charged expenditure on the CFI <can you tell us the difference b/w charged expenditure and non charged expenditure? Also can you tell us one prominent constitution body whose expenditure is not charged? Answer in the comments.>
- The receipt of money on account of the CFI or the public account of India or the ambit of accounts of the Union or of a state <can you tell us the difference b/w consolidated fund of India and public accounts of India? Answer in the comments>
- Any matter incidental to the above issues
A money bill cannot be rejected by the Rajya Sabha, which can only suggest changes, the Lok Sabha is free to reject.
Speaker: Article 110(3) confirms finality on the speaker’s decision on the question of whether a bill is a money bill.
What were the amendments moved by Rajya Sabha?
- It wanted to restrict the use of Aadhaar numbers only for targeting of govt benefits or service and not for any other purpose
- It wanted to replace the term ‘national security’ with ‘public emergency and public safety’, arguing that the term ‘national security’ is very vague
- It wanted an Oversight Committee to review the Competent Authority’s decision, which should also comprise of either the CVC or the CAG
- It wanted to delete a section which says that if under any other law the use of Aadhaar number for establishing the identity of an individual is permitted, the same law is not being over-ruled
Conclusion
There is little doubt that India needs to streamline the way it delivers benefits, and to empower citizens with a basic identification document. But this cannot be done without ensuring the strictest protection of privacy.
Follow our story on Aadhaar Cards: The Identity Revolution.
Published with inputs from Pushpendra
Good article