Ad Here  
February
March
April
May
June
July
 
 
Banking on Risk LVB- A supermarket of financial services Just 660 days! Target over-ambitious... Mega merger is on Greet Lakshmi the banking robot Smart banking in smart cities Drop in SLR- sparing lendable resources Another route for achieving financial inclusion Bank deposits account for 46.3 per cent of household savings Who is the real beneficiary? What is the priority – mergers or NPA reduction? Anytime banking to anywhere banking Why any time money? A development bank for BRICS The paradox: clamour for the Goliath and David Insatiable appetite for credit Fund healthcare clinics in villages... Grows Bigger Needed a Banking Atlas Growing gainfully Banking overhauling or reorganisation? United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Stage set for Indian ‘avatar’ of foreign banks Small is ‘more’ beautiful Too big to fail and too small to sail Indian customers are tech savvy Cautious and considerate Small finance payment banks... Banking in Telangana The collaboration suite of cyber criminals Holy or unholy? Financial inclusion vs unclaimed deposits Nothing much can happen…. Targets continue to be ad hoc How okay are new banks? Good, bad and ugly Reaching the Unreached… Ferrying digital banking to Lakshadweep Reaching out: is it slowing down? New capitals of Migrant banks New bank licences, at last... A new development bank rising in the east… Monetary policy continues to adopt dis-inflationary path Why priority status? Managing NPAs... Capital base of regional rural banks raised Payment banks have arrived From lazy banking to easy banking Perhaps small is more beautiful than big! Big bank merger, bigger expectations Bottomlines shrink, bad loans rise... Cut in repo rate – lower than expected Two banks: their jubilees and performances Merger mania haunts banks Governance in Reverse Gear? Small finance banks offer high interest rates It’s a war on black money, support it. Aadhaar, niraadhaar and banking Ernakulam excels... How ‘secure’ are the secured loans? Growing volume of stressed assets… Thirty more cities seek to become SMART Rationalised Emerging crisis Cradle of banks to a smart city... All that glitters is not gold... Hesitancy in announcing year-end results Drastic decline in asset quality Lacklustre credit expansion A bank for women, by women Well-lived... One down in private sector
 
Aadhaar, niraadhaar and banking
Aadhaar is a 12 digit number issued to all citizens in India by the Unique Identification Authority of India. UIDAI claims 93 per cent of adult residents possesses this unique identity, aka Aadhaar.

Aadhaar has now swept the nation off its feet.  Paul Romer, chief economist of the World Bank, hails it “as the most sophisticated ID programme in the world and it could be good for the world if this became widely adopted."

Mandatory for bank accounts...

Recently the Government of India announced that linking of Aadhaar should be mandatory for all non-small bank accounts, failing which, access to the bank account will be disabled after 31 December 2017. On 27 March 2017, the Supreme Court affirmed that Aadhaar couldn’t be made mandatory for availing benefits under welfare schemes. Hence, as of today, the linking of Aadhaar number to open bank accounts is made not compulsory.

Giving a unique number to all citizens free of cost is a novel experiment. All the more so for a populous country like India with steep poverty rates. The PAN card could have done the same job. But while it is compulsory for the tax-payers, non-tax citizens are out of its purview. No single card, other than Aadhaar reaches the entire population. 

 

Easy to get...

Aadhaar is easy to get. In fact, the Income Tax Department demands more financial details for issuing PAN cards than what is collected for issuing Aadhaar! Though a few tax-payers do grumble while furnishing such elaborate information, it is the tax-evaders who are vociferous in opposing the linkage of Aadhaar number with bank accounts. Aadhaar will also make the decennial census easy.

 

Fake Aadhaar cards

A large number of people still do not have an Aadhaar number. The poorer among them may not have bank accounts also.  However, they are enumerated in the decennial census and the voter list.  The existence of fake Aadhaar cards cannot be ruled out. But the higher cause for worry is the unimaginable distortions in Aadhaar cards made by some crooks. In some cases, even a few foreigners possess Aadhaar cards!

In all of the data about the performance of banks, there are no details available regarding the total number of customers. What is available is the number of accounts- deposit accounts or borrowing accounts.  The multiplicity of bank accounts held by individuals like saving deposit accounts and fixed deposit accounts, housing loans or vehicle loan, is an Indian characteristic. Hence, the number of accounts does not represent the number of persons having bank accounts.

Aadhaar card can be used to generate the actual number of bank customers, linking it with PAN card. Based on the data of TDS on fixed deposit, the number of customers in a branch can be derived. Aadhaar can be used to identify the account holder if he has deposited in banks. One limitation of this process, however, is that it cannot reach the non-PAN card holders and the small depositors.

It’s an idea whose time has come. 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com