Monday, October 18, 2021

Impact of Aadhaar on Indian economy


Issued by the UIDAI (Unique Identification Authority of India) the Aadhaar serves as a proof of Identity and address for any Indian citizen/resident living anywhere in India. The unique 12-digit number helps in establishing the identity of each individual living in the country. 

Aadhaar online KYC helps in establishing the identity of the individual. The agencies can verify the identity of the beneficiaries and customers while delivering the benefits/services to them as well as while onboarding new customers. Aadhaar eKYC online services help in preventing the misuse of the services and benefits provided to the individuals. By using Aadhaar as their proof of identity the beneficiaries get the benefits and subsidies directly in an effortless manner.

There are several government schemes and programs for the welfare of the economically backward sections of our country. Using Aadhaar online KYC, transparency, and efficiency are ensured by the government while delivering these schemes and benefits.

How Has Aadhaar Impacted Our Economy?

Both the government and the common man have benefitted a great deal since the introduction of Aadhaar. Aadhaar and Aadhaar online KYC has helped in improving the efficiency of the delivery system in our country.  The government has also been successful in stopping the leakage of cash to a great extent and the money thus saved is now being used continually for the betterment of India.

  • Aadhaar is being used as a digital ID in our country
  • For the implementation of direct transfer of cash
  • Reduced leakage of cash and efficiency gains in government expenditure
  • Ensuring the actual beneficiaries receive the benefits of governmental schemes
  • Payments are made directly to the beneficiaries bank account linked with the Aadhaar
  • This has increased savings

Given below are some important benefits that the government has attained after the implementation of Aadhaar eKYC online.

 Tracking Of Benami Properties

As per the Benami Transactions (Prohibitions) Amendment Act of 2016, people who are purchasing properties have to provide their Aadhaar details in the real estate documents. This has helped the government in tracking down benami properties.

Prevention Of Tax Frauds

The government has made it mandatory to link Aadhaar for filing income tax returns. This has helped in stopping tax evasion by individuals to a great extent. The entire process is now much easier and quicker as well.

Effective Disbursal Of Subsidies

Linking Aadhaar to the different subsidies has helped the authorities in effectively distributing the same. 

  • The amount is transferred directly to the beneficiary’s account
  • This has helped in preventing the misuse of subsidy money by middlemen

Targeted Delivery Of Services

Services and benefits from the government like distribution of food and kerosene at subsidized rates through the Public Distribution System are delivered only after Aadhaar authentication. This is to ensure the services are being delivered to the intended beneficiary. This helps in curbing leakages and preventing fraudulent practices involved otherwise.

Benefits Of Linking Aadhaar To Bank Accounts

There are several benefits attached to linking bank accounts to Aadhaar.

  • Deserving beneficiaries get food products at subsidized prices
  • Subsidies for LPG cylinders
  • The deserving students receive a scholarship from the government

Elimination Of Ghost Accounts And Ghost Individuals

The government has been successful in removing several ghost accounts and individuals that were registered for the illegal access of government subsidies and other benefits. This has helped the government in saving billions that were being leaked otherwise.

Linking the Aadhaar card to both governmental and private services has helped in eliminating duplication of identities to a great extent.  This in turn has resulted in an increase in the savings in the national treasury.  

Introducing Akhshayous Gold Locker Cards keep your safe jewellery in an insured bank locker while you enjoy shopping using 40 day interest free credit. For more details check out our website. Akshayous is a Finahub product.