Micro ATM, BC, Aadhaar Authentication System

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29 Νοε 2013 (πριν από 7 χρόνια και 10 μήνες)

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Technology
as enabler for electronic benefit transfer


Case of
Micro ATM, BC, Aadhaar
Authentication System

November 29, 2012

Challenges

1.
Benefit payments are made in non
-
standard methods that
vary at state level, district level, and often block level, with
high co
-
ordination costs.


2.
Stakeholders and concerns:

i.
Government: Ensure that the intended beneficiary is indeed the
actual recipient, Visibility and auditability, citizen dissatisfaction

ii.
Banks : Financial viability, policy uncertainty

iii.
Resident : High opportunity and transaction costs


2

Desirable features of an efficient EBT system
(1/2)

1.
Convenient single window enrollment process


2.
Minimal overhead for Government.


3.
Standard and common process for all Line Ministries and State
Government to send money to a beneficiary’s bank account in a
timely way. This also reduces co
-
ordination costs.


4.
Auditability and transparency of process to ensure that the correct
beneficiary receives the transfers.

3

Desirable features of cash transfer system

for beneficiaries
(2/2)

5.
Beneficiaries should have the choice of multiple convenient
locations to access cash. This may include bank branches,
microATM customer service points, post offices, citizen service
centres, etc.


6.
Beneficiaries should be able to access cash conveniently through a
network of microATMs at the grassroots level, or using ATMs,
mobiles, tellers at branches, postman, etc.


7.
The cash transfer system needs to be deployed at scale with 10 lakh
transaction points to cover 7,00,000 villages

4

Why Aadhaar?

1.
One time Aadhaar enrolment and linkage with scheme

2.
Aadhaar can act as a financial address for transfer of all
EBTs using Aadhaar Payments Bridge

3.
Standard platform approach thus reducing coordination
costs

5.
Interoperable cash withdrawal points using Aadhaar
authentication service offered as a public good

5

Aadhaar Payments Bridge

Aadhaar Payments

Bridge

Existing
Account

State
Governments

Family

Aadhaar

Account

8384 8239 5837

27390239

4390 9203 9593

397802232

1.
The Aadhaar Payments Bridge has already been deployed by the
National Payments Corporation of India.


2.
The Aadhaar Payments Bridge can handle crores of transactions on a
daily basis.

Employers

Government
of India

Oil Marketing
Companies

Sponsor Bank

Or

India Post

Aadhaar +

All G2P payments into one account

7

Aadhaar Payments Bridge (with Account
Mapper
)

Multiple

Schemes

One

Aadhaar

linked

account

Interoperable cash withdrawal points

Bank branches
and Post
Offices
2,5
0,000

ATMs

1,00,000

POS terminals

5,00,000

Aadhaar
-
enabled MicroATMs

Over 10,00,000 by 2014

Banking through Mobile phones, Internet

Any where, any time access

60,00,00,000

MicroATM network at the grassroots level


With MicroATMs, any Aadhaar holder can
:

1.
Withdraw money

2.
Deposit money

3.
Send and receive remittances



Over 10 lakh locations where microATMs can be deployed
:

1.
1,00,000 Bank branches

2.
1,50,000 Post Offices

3.
4,00,000 Fair Price shops

4.
1,50,000 Fertilizer shops

5.
1,00,000 Citizen Service Centres

6.
1,00,000 PACS

7.
25,000 petrol stations

8.
10,00,000
kirana

shops

Advantages of AEPS


Beneficiary can
receive money at doorstep


Inter
-
operable system
thereby ensuring
customer is not tied to one bank’s BC


Network of BCs, bank branches and Post
Office can
leverage
a single
biometric
authentication system

accessible through
microATMs


Efficiency in public expenditure
as no need for
banks to separately capture biometrics and
develop their own de
-
duplication and
Authentication systems




Aadhaar Authentication

1.
Aadhaar Authentication service validates the identity of the
Aadhaar holder using fingerprint, iris and mobile based
authentication methods.


2.
The UIDAI has built an Aadhaar authentication system that
can service millions of authentications on a daily basis.


3.
The Aadhaar system is a
first

worldwide, due to the
challenges of biometric technology at such scale. Online
authentication makes it possible for Government and Banks
to focus on service delivery rather than tinker with biometric
technology.

11

End
-
to
-
end transparency and accountability


Government

Bank

Customer
Service Point

Aadhaar

Pension ID

8384 8239 5837

3883923

4390 9203 9593

8592374

Aadhaar

Account

8384 8239 5837

27390239

4390 9203 9593

397802232

Aadhaar

MicroATM

8384 8239 5837

736509

4390 9203 9593

583902


Aadhaar linkage in the Government and Bank databases
provides end
-
to
-
end visibility of subsidy and benefits
payments from Government to the beneficiaries.

Advantages of APB to Departments


Removes fakes/ duplicates
from the beneficiaries list leading to savings


Eases the entire process for transferring benefits

as the Govt. just needs to know
the Aadhaar numbers of the beneficiaries without seeding bank account details in
every scheme database


Eliminate Errors/Frauds
as the resident is in control of his data at both ends
(Department and Bank). Direct linking ( of Domain ID with Bank Account) without
Aadhaar is a non
-
trivial problem.


Ensures Scalability

as each scheme does not require to populate their database
with bank account details. APB is a platform


Bank account changes do not affect
the transfer systems for various schemes


Resident
-
centric view of payments
under various schemes. This will enable
weeding out those people who may be availing LPG as well as Kerosene subsidy
and benefits of multiple schemes.


Digital audit trail & Transparency


Real time monitoring and efficient funds & program management


Advantage of APB to Beneficiaries


No need to open
multiple accounts
. Just open
one and link it to Aadhaar.



Residents
more comfortable in disclosing
only
the Aadhaar number to Govt. Agencies ( e.g. LPG
Dealers) rather than bank account details



In case of change in bank account, resident
does
not need to convey account details
or change in
bank details to each department that he deals
with



1111 2222 3333

EBTs using Aadhaar


a snapshot

Link Aadhaar

Aadhaar Enabled Bank Accounts
(AEBA)

Aadhaar Enabled Payment System
(AEPS)

Aadhaar Payment Bridge

(APB)

1.
Digitize data

2.
Link Aadhaar

1.
Open / link AEBA

2.
Appoint BCs and roll
out AEPS

1.
Enroll for Aadhaar

2.
Provide Aadhaar to
agencies/bank

Thank You