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First Post
2 days ago
- Business
- First Post
Women, rural India and the Modi decade: Who benefited most?
From LPG access to housing and financial inclusion, PM Modi's decade saw transformative welfare schemes targeting women and rural India. Flagship programs like Ujjwala, Jan Dhan, and Awas Yojana empowered millions, while new data shows over 170 million people lifted out of poverty. read more Over the last 11 years, Prime Minister Narendra Modi-led government has introduced a series of flagship schemes to empower rural India and women. From clean cooking fuel to housing and bank accounts for the unbanked, these social welfare programmes have not only addressed immediate needs but also contributed to lifting millions out of poverty. Here are six key takeaways from the decade-long impact of the Modi government on rural India and women: STORY CONTINUES BELOW THIS AD Clean cooking fuel: Ujjwala Yojana transforms rural kitchens Launched in 2016, the Pradhan Mantri Ujjwala Yojana (PMUY) was a major initiative to replace hazardous solid fuels like firewood and cow dung with clean LPG connections. By May 2024, over 10.3 crore LPG connections had been distributed to below-poverty-line women across the country. The International Energy Agency notes that nearly 681 million people in India still relied on solid fuels for cooking at the program's inception, underscoring the health and environmental stakes. By enabling access to clean energy, PMUY has reduced household air pollution and the burden of disease on rural women while also freeing up time for education and income-generating activities. A roof over every head: Pradhan Mantri Awas Yojana The Pradhan Mantri Awas Yojana (PMAY-U) launched in 2015 to provide 'housing for all' in urban India. As of late 2023, the government had sanctioned over 1.18 crore houses, with more than 88 lakh already delivered to beneficiaries. To meet the backlog, the government approved PMAY-U 2.0, targeting the construction of an additional 1 crore houses and extending the program deadline to December 2024. This ambitious push not only improved living conditions but also created jobs in construction and allied sectors further supporting economic upliftment in urban poor and rural migrant populations. Financial inclusion at scale: Jan Dhan Yojana's massive reach The Pradhan Mantri Jan Dhan Yojana (PMJDY) has emerged as a cornerstone of India's financial inclusion strategy. From just 14.7 crore bank accounts in 2015, the number soared to over 53 crore by August 2024. *According to the latest information, an estimated 36.14 crore RuPay cards have been issued, enabling digital and cashless transactions. *Average deposits in PMJDY accounts grew over 4 times from 2015 to 2024. *The number of zero-balance accounts halved from 8.52 crore to 4.26 crore. *Nearly 100% village coverage with banking access within a 5 km radius. *Jan Dhan laid the foundation for direct benefit transfers (DBTs) and accelerated financial empowerment especially for women and marginalised communities. Millions lifted out of poverty According to the World Bank's Spring 2025 Poverty and Equity Brief, India's extreme poverty has plummeted to 5.3% in 2022–23, down from 27.1% in 2011–12. That translates to over 269 million people moving out of poverty, with 172 million of them crossing the international $2.15/day poverty line. Economic growth, expanded access to electricity, sanitation, housing and targeted welfare programs all contributed to this decline, making it one of the most major poverty reduction achievements globally in recent decades. STORY CONTINUES BELOW THIS AD Financial inclusion as a catalyst for grassroots growth By extending access to affordable financial services, India has taken decisive steps toward bridging its credit and development gap. Financial inclusion empowers people, especially in rural areas with access to savings, credit, insurance and pensions. This not only encourages entrepreneurship among women and small businesses but also strengthens inclusive economic growth by spreading the benefits to the lowest-income groups. Empowerment beyond welfare: A shift in economic agency The decade under PM Modi has not only seen the distribution of benefits but a strategic pivot towards empowering people as economic actors. Women who once collected firewood now use clean fuel and send their children to school. Families that once lacked formal housing now own a pucca home. People once outside the banking net now participate in the digital economy. As India prepares for the next phase of its development, the last 11 years under the Modi government offer a mixed but undeniably transformational picture, especially for women and rural populations. While challenges remain, the scale and impact of targeted welfare schemes, financial inclusion and poverty reduction have reshaped the socio-economic landscape for millions.
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Business Standard
21-05-2025
- Business
- Business Standard
Pradhan Mantri Suraksha Bima Yojana - A decade of insurance inclusion
Pradhan Mantri Suraksha Bima Yojana (PMSBY) marks a significant milestone in India's journey toward universal social security. Launched in May 2015 and designed as an affordable and accessible personal accident insurance scheme, PMSBY targeted economically vulnerable citizens, particularly those in rural and unorganised sectors. With a nominal annual premium of ₹20, the scheme offers ₹2 lakh insurance coverage for accidental death or full disability, and ₹1 lakh for partial disability. Over the past decade, PMSBY has evolved from a government initiative to a symbol of inclusive insurance outreach. PMSBY was conceived as part of the government's broader strategy to strengthen the social security framework in India. It followed the successful rollout of the Pradhan Mantri Jan Dhan Yojana (PMJDY), which brought millions of underbanked Indians into the formal banking system. The linkage between Jan Dhan accounts and PMSBY facilitated seamless enrolment through auto-debit, making it especially easy for low-income individuals to subscribe with ease. Together, these schemes have become pillars of India's insurance inclusion strategy, ensuring that the economically weaker sections are not left vulnerable in times of need. In the last ten years, the scheme has crossed 44 crore enrolments and has settled over 135,000 claims, disbursing more than ₹2,700 crore in FY 2024–25 alone. These figures highlight the scale and impact of the initiative in embedding insurance awareness across the nation. The National Insurance Company (NIC) has played a key role in implementing this scheme. Covering over 170.4 million individuals across states which is nearly 38 per cent of the total enrolment, NIC has worked with commitment and compassion to ensure the scheme reaches its intended beneficiaries. Over the decade, NIC has honoured nearly 55,000 claims, i.e. 40 per cent of the total claims, amounting to ₹1,000 crore, reinforcing its dedication to serving the underprivileged with empathy and efficiency. Through PMSBY, financial institutions have had the opportunity to directly engage with the lives of those often left out of mainstream insurance services. These interactions have not only deepened their resolve to support the mission of insurance inclusion but have also provided meaningful insight into the hardships and resilience of India's poor. The true measure of PMSBY's success lies in the stories of its beneficiaries, the stories of resilience in face of loss. Mrs. Meena Singh, a homemaker from Jehanabad, Bihar, lost her husband in a tragic road accident. Though devastated, the family received ₹2 lakh under PMSBY, which helped her continue her children's education. Her late husband had enrolled in PMSBY through his bank, with just ₹20 being auto-debited annually. Similarly, in Karnataka, Rani Kumari, a teenager injured in a bike accident, received timely medical treatment funded by the claim settlement of her deceased brother's policy. The ₹2 lakh payout provided critical financial relief for her family. Further East, in Guwahati, Ms. Riya Das, a young widow, received ₹2 lakh within seven days of submitting documents after her husband's accidental drowning. These touching stories, though only a few among thousands, reflect how PMSBY has brought dignity and hope to families during times of intense grief and financial distress. For many, it has been the only form of insurance they could afford — turning ₹20 into life-saving support. However, the journey of PMSBY has not been without its share of challenges. Initially, the scheme faced issues related to geographical remoteness, low awareness in rural areas, administrative hurdles in claim processing and difficulty in collecting valid documents to name a few. However, persistent efforts, digital outreach, and supportive government frameworks have addressed many of these concerns. The launch of the Jan Suraksha Portal has improved transparency and ease of enrolment and claims, especially for rural populations. Integration with banking and digital platforms has further streamlined operations and minimised delays. As India looks ahead to Viksit Bharat @2047, aiming for inclusive development, schemes like PMSBY are foundational to achieving 'Insurance for All.' To deepen its impact further, future measures could include Enhancing the coverage from ₹2 lakh to ₹5 lakh to reflect expanded benefits while remaining affordable, launching awareness campaigns at the block and panchayat levels, strengthening grievance redressal mechanisms and digital claim tracking. These steps will ensure the scheme remains sustainable and responsive to evolving needs, especially amid rising accident-related risks and medical costs. Over the past decade, Pradhan Mantri Suraksha Bima Yojana has not only promoted insurance literacy but also saved families from financial ruin in the aftermath of tragedies. The collaborative effort of the government, banks, insurers, and the resilience of the beneficiaries themselves has made PMSBY a model for social insurance schemes worldwide. As we move towards a more secure and equitable India, the journey of PMSBY stands as a testament to the power of simple, well-designed policies in transforming lives. From ₹20 premiums to ₹2 lakh payouts, the scheme continues to demonstrate that even the smallest contributions can build a future of security, trust, and dignity for all.
Economist
21-05-2025
- Business
- Economist
Women's financial resilience: the key to advancing climate action
Scientists recently confirmed that 2024 was not only the warmest year on record globally but also the first year to exceed 1.5°C of warming above pre-industrial levels. We're already seeing global warming's devastating consequences across the world, including more extreme heat, increased droughts and rising food insecurity, ultimately pushing millions into poverty and sickness. Currently, more than 90% of climate finance is focused on mitigating climate impacts, with only a drop in the ocean of total climate finance being spent on building resilience to the changes that are already threatening the health and livelihoods of millions of people. Our most vulnerable communities are left unprepared for current—and future—climate shocks. And it's not only money on the table that's missing from these lives. The topic of resilience is missing from climate conversations—most notably for me when I attended the World Economic Forum in Davos earlier this year or more recently the Spring Meetings in Washington DC. Yet we can't build climate resilience without first ensuring financial resilience—especially for women. That includes ensuring access to basic financial services such as digital payments, savings, credit, and insurance. Today, 753m women in the most climate-vulnerable countries lack even the most basic financial services such as access to formal savings accounts and insurance products that protect their assets and livelihoods from climate impacts. Women's World Banking has calculated that today, 880m women don't have access to digital payments, meaning they have no way of receiving emergency relief payments from governments or support organisations in the aftermath of a climate disaster. The millions of women around the globe bearing the brunt of climate impacts cannot wait. Research shows that women are 14 times more likely than men to die in climate-related disasters, and climate change is predicted to push 158m more women and girls into poverty by 2050. But what if there were a way to advance climate action while also lifting millions of women out of poverty? Why financial services and climate resilience go hand in hand Financial services play a critical role in helping women adapt to, mitigate and endure the effects of climate change. Let me introduce you to Rekha Devi, who owns a small embroidery and carpet-making business in Shahjahanpur, India. In 2023 the government's financial-inclusion programme, Pradhan Mantri Jan Dhan Yojana (PMJDY), provided Rekha with a lifeline when monsoon floods devastated her area. A few years earlier, Rekha had been encouraged to open a bank account at Bank of Baroda and, despite her irregular earnings, she had managed to save US$6 five times a year. Her small but constant savings, alongside two rounds of government relief payments deposited directly into her bank account, provided much-needed financial security when the monsoon displaced Rekha and her children. In addition, an important product enhancement, created in partnership with Women's World Banking and Bank of Baroda, also let Rekha's regular savings habit unlock an emergency loan of US$115. The credit allowed the family to return home, and for Rekha to make essential home and business repairs. Rekha's story showcases how access to the most basic financial services, combined with savings habits and government support, not only ensure survival but can empower low-income women to navigate the climate crisis and build their resilience. Women's climate resilience doesn't have to depend on development assistance Despite the clear benefits of investing in women's financial resilience and the many effective, scalable financial solutions that already exist, only a miniscule part of climate finance is directed to women and girls. As development assistance budgets in the United States and Europe decline, the need for self-sustainability becomes even more urgent. That's where financial service providers—in partnership with governments—come in. By providing access to basic financial services (including through national financial-inclusion schemes like India's PMJDY) to the broadest number of clients, we can ensure that women are able to prepare for and respond to climate shocks. And we can do that while greatly reducing dependence on international development assistance. Women's World Banking is dedicated to reaching the nearly one billion women who are underserved by the formal financial sector and works closely with financial-services providers across the global south to develop products and services that not only meet women's needs but are financially viable for the provider as well. A word about insurance The case for providing savings and credit is clear and, while insurance represents the 'third leg of the stool' in building financial resilience, only 1% of the world's population currently has climate-related insurance. SwissRe estimates that relative to GDP, the insurance loss burden from catastrophes has more than doubled over the last 30 years, and it could double again in the next decade. Property and casualty insurance undeniably assist individuals and families in recovering from natural disasters, while access to health insurance helps people deal with climate-related illnesses such as respiratory diseases caused by air pollution. Insurance provides an essential part of the foundation upon which communities and individuals can recover from climate-induced catastrophes. Research shows that insurance is at the centre of a virtuous circle. Insurance premiums are largely unaffordable for most people until GDP per capita reaches a certain level, but increased levels of insurance result directly in higher GDP growth—leaving us with a financial 'Catch 22' situation. For every 1% increase in insurance penetration, there is a 0.5% rise in GDP growth, underscoring the crucial role insurance plays in advancing economic development and the Sustainable Development Goals. Here is where development assistance and philanthropic capital can play a hugely catalytic role: by subsidising premiums to expand the number of people who are insured, while also spreading much-needed awareness about how insurance works and its benefits. We only have five more years to make progress on the SDGs and other climate commitments, but we cannot stumble at the finishing line just because it seems ever more difficult to reach. Instead, we need to prepare for a sprint. There is no economic growth and sustainable development without women's financial inclusion—just like there is no way to address the climate crisis without improving women's resilience.
Time of India
24-04-2025
- Business
- Time of India
UIDAI CEO Bhuvnesh Kumar on securing the digital identity of over billion Indians
As of January 2025, over 100 crore face-authentication transactions were recorded in India—proof of how deeply Aadhaar has become embedded in the country's digital and financial ecosystem. Behind this scale and sophistication is the Unique Identification Authority of India ( UIDAI ), which continues to evolve the Aadhaar platform to meet emerging technological, legal, and societal challenges. In this wide-ranging interview, Bhuvnesh Kumar, Chief Executive Officer of Unique Identification Authority of India - UIDAI , speaks to Anoop Verma , Editor-News, ETGovernment, about how Aadhaar is being continually fortified through artificial intelligence, biometric liveness detection , and blockchain-based verifications. From empowering women through financial independence to ensuring last-mile delivery in remote areas via fingerprint-enabled doorstep banking, Kumar offers a comprehensive look into how UIDAI is building a secure, inclusive, and future-ready identity infrastructure for over a billion Indians. Edited excerpts: Aadhaar has been instrumental in financial inclusion. How has it impacted India's unbanked population and Direct Benefit Transfers (DBT)? Aadhaar has played a transformative role in advancing financial inclusion in India. Over 50 crore bank accounts were opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), a milestone made possible through Aadhaar-based eKYC. This method of electronic Know Your Customer verification is fast, non-repudiable, and highly cost-effective, significantly accelerating the onboarding of new customers for banking services. As a result, India has achieved near-universal financial inclusion in terms of bank account proliferation. When Aadhaar was conceptualized in 2009, only about 17% of India's population had bank accounts. By 2024, approximately 95% of the population—virtually 100% of adults—possessed an Aadhaar number, and bank account ownership had surged to 77%. Aadhaar authentication has also helped eliminate around 100 million fake or ghost beneficiaries, enabling the government to deposit subsidies and benefits directly into the accounts of verified individuals. This direct benefit transfer mechanism has led to cumulative savings of ₹3,72,546 crore by March 2025. Once linked to a bank account, Aadhaar becomes a financial address for the holder, allowing precise and efficient delivery of welfare schemes to the rightful beneficiaries. How does UIDAI ensure that people in rural areas, who may have limited access to technology, can still use Aadhaar effectively? UIDAI has implemented several measures to bridge the digital divide in rural India, ensuring Aadhaar's accessibility even in areas with limited technological infrastructure. The Aadhaar-enabled Payment System (AePS) has proven particularly effective, allowing individuals to access their Aadhaar-linked bank accounts using just their fingerprints. Through door-step banking services provided by "bank mitras," residents can carry out transactions from the comfort of their homes, overcoming barriers such as lack of smartphones or internet access. Fingerprint-based Aadhaar authentication is also widely used for accessing a variety of government services, especially in-kind benefits like the Public Distribution System (PDS), which has emerged as one of the largest platforms for Aadhaar-based identity verification. Moreover, UIDAI has introduced offline verification options, including QR code-based Aadhaar services, which enable identity verification even in areas with poor or no internet connectivity, thereby ensuring inclusivity in remote regions. What are the challenges in Aadhaar enrollment for vulnerable populations such as the elderly, disabled, and homeless individuals, and how is UIDAI addressing them? UIDAI has instituted multiple provisions to address enrolment challenges faced by vulnerable populations, ensuring that no eligible individual is left out due to physical or biometric limitations. Under its Biometric Exception Enrolment Guidelines issued on August 1, 2014, UIDAI allows enrollment for individuals who cannot provide biometric data such as fingerprints or iris scans due to reasons like injury, old age, leprosy, or other conditions. If only one biometric—either fingerprint or iris—is available, it is used for enrolment; if neither can be captured, enrolment still proceeds based on demographic details, with specific notations in the system and a supervisor's validation. Photographs highlighting the biometric exception are also required, ensuring documentation is thorough. Additionally, UIDAI has issued advisories to all registrars and enrolment agencies, urging them to train operators on handling exceptional cases with care and empathy. For those unable to visit enrolment centres, UIDAI offers home enrolment services on a chargeable basis, particularly for senior citizens, bedridden individuals, and persons with disabilities. Applicants must submit supporting documentation, including a medical certificate or disability ID, to the nearest UIDAI Regional Office. UIDAI also conducts regular enrolment camps to reach and serve vulnerable populations across the country. There have been concerns about Aadhaar-related exclusions in welfare schemes. How does UIDAI work with the government to ensure benefits reach the intended beneficiaries? UIDAI is committed to ensuring that Aadhaar does not become a barrier to accessing welfare benefits. For schemes governed under Section 7 of the Aadhaar Act, 2016, Aadhaar authentication is not mandatory for availing benefits. In cases where Aadhaar authentication is not feasible, beneficiaries are allowed to establish their identity through alternate means. While UIDAI provides the technological backbone for identity verification, it is the responsibility of the implementing agencies to formulate clear policy guidelines allowing such alternatives, thereby ensuring that no eligible beneficiary is denied service due to Aadhaar-related challenges. How does Aadhaar empower women, particularly in terms of financial independence and access to government schemes? Aadhaar has significantly contributed to empowering women by facilitating a shift from family-based to individual-based bank accounts. Aadhaar-based eKYC has made it possible for women to open their own bank accounts quickly and securely, which is now a prerequisite for receiving Direct Benefit Transfers (DBTs). As government welfare benefits are now transferred directly to the individual's account, women beneficiaries are ensured direct and independent access to financial resources. This direct ownership of funds has enhanced their ability to make financial decisions, thereby fostering greater economic independence and contributing to their empowerment. What technological advancements are being integrated into Aadhaar to enhance security and authentication? To enhance security within the authentication ecosystem, biometric spoof detection techniques based on artificial intelligence and machine learning models are being integrated into fingerprint devices by respective vendors. Additionally, biometric matching and liveness detection models for both face and fingerprint modalities are regularly trained using the latest datasets. UIDAI is also progressing toward implementing liveness detection for iris-based devices, further strengthening the overall biometric security infrastructure. UIDAI is actively deploying AI and ML technologies to detect and prevent identity fraud across multiple fronts. One live project involves an AI-ML model that analyzes biometric enrolment and update patterns to identify fraudulent activities, such as flipped or partial IRIS submissions and mixed biometrics. The system flags anomalies and potential fraud cases. AI also extracts URLs from QR codes to validate credentials against whitelisted sources like official birth certificate issuers. A face-matching system integrated with liveness detection helps prevent spoofing through photos or videos. The SEDA system further enhances security by performing 1:N face deduplication and cross-matching with Bureau of Immigration records to prevent fraudulent enrolments by foreigners. Additionally, an AI-based age prediction model is in canary mode to detect age-related fraud. In the short term, projects in the pipeline include AI-driven photo matching from submitted documents to reduce dependency on human operators, and OCR-based data extraction to automate document verification. Long-term plans involve developing an indigenous Automated Biometric Identification System (ABIS) for large-scale deduplication using AI, along with state-wise Bharat DeDupe initiatives to eliminate database duplicates. Liveness detection for face, fingerprint, and iris is also being planned to prevent biometric spoofing. These efforts aim to significantly enhance the reliability and security of Aadhaar's identity verification system. Are there plans to incorporate blockchain technology to further secure Aadhaar data? UIDAI currently operates a centralized identity platform based on the Central Identities Data Repository (CIDR) for enrolment validation, authentication, and biometric verification. However, it is also exploring blockchain-based solutions for offline Aadhaar verification. Blockchain, with its decentralized trust model, allows for verifiable credentials where authentication can occur without direct connectivity to CIDR. This approach can enhance data immutability, auditability, and enable secure offline verification through cryptographic proofs. While this could reduce dependency on real-time queries and increase trust, challenges such as scalability, governance, and compliance need to be addressed to align with UIDAI's operational structure. Given the increasing cyber threats, what new security protocols are being developed to protect Aadhaar users? UIDAI has adopted a security and privacy-by-design approach in building the Aadhaar ecosystem. Key security measures include consent-based access to Aadhaar Number Holder (ANH) data, available only to the ANH and authorized Requesting Entities (REs). Data is encrypted both at rest and in transit, ensuring protection throughout its lifecycle. Users can generate a Virtual ID (VID) instead of sharing their Aadhaar number, and they also have the ability to lock and unlock their biometrics to prevent misuse. UIDAI has developed an AI/ML-powered authentication system to detect fraud and continuously reviews and audits the security of CIDR to safeguard its systems. To future-proof against evolving threats, enhancements to encryption protocols are underway to mitigate post-quantum risks, alongside the rollout of a scaled-up fraud management system. How does UIDAI ensure the reliability of biometric authentication, especially for individuals facing fingerprint or iris recognition failures? To address authentication challenges related to fingerprint and iris recognition failures, UIDAI is increasingly promoting the use of face authentication, which has shown higher success rates and greater resilience to functional issues. Face authentication is particularly effective in cases where fingerprint quality is poor or iris scanning faces technical hurdles. As of January 2025, face-based authentication has crossed the 100-crore transaction mark, with an average of 45 to 50 lakh daily transactions, indicating its growing adoption and reliability across the Aadhaar ecosystem. How does UIDAI ensure compliance with legal frameworks, especially after the Supreme Court's rulings on Aadhaar? The Supreme Court's 2018 ruling in the Justice K.S. Puttaswamy (Retd.) vs. Union of India case was a landmark decision that defined the legal boundaries for Aadhaar's operation, particularly in relation to privacy and data security. In response, UIDAI undertook several measures to align its operations with the Court's directives. The ruling emphasized that Aadhaar usage for non-government services like mobile phone connections and bank accounts must be voluntary. It also mandated strict safeguards for data security and privacy, prohibiting data sharing without individual consent. To comply, UIDAI amended the Aadhaar Act through the Aadhaar and Other Laws (Amendment) Act, 2019. Key provisions included redefining the Aadhaar number to incorporate Virtual ID (VID), allowing voluntary use of physical or electronic Aadhaar for authentication or offline verification, and mandating parental consent for child enrolments. Only entities adhering to prescribed privacy and security standards can now use Aadhaar authentication, and offline verifications are also subject to stringent restrictions on data sharing. Further safeguards include the requirement for judicial orders (from a High Court judge) for accessing identity information under Section 33(1) of the Aadhaar Act, and increased penalties for non-compliance. A new Chapter VIA introduced civil penalties and a framework for adjudication and appeals, while amendments to Section 47 empowered Aadhaar holders to file complaints against privacy violations. UIDAI is also adapting to newer legal developments. Following the enactment of the Digital Personal Data Protection Act, 2023, and the upcoming rules under it, UIDAI is assessing and updating its technological and legal systems to ensure full compliance with the new data protection regime. What steps has UIDAI taken to ensure Aadhaar data is used responsibly by government and private entities? UIDAI has implemented a robust set of measures to ensure responsible use of Aadhaar data by both government and private entities. The Aadhaar Act, 2016 serves as the legal foundation, clearly stipulating that data can only be used for authorized purposes with the explicit consent of the Aadhaar holder. The Act also enforces penalties for any misuse. To protect user privacy, the authentication process is designed to share only the minimum required information, and users are informed of the purpose during authentication. Advanced encryption techniques secure biometric and demographic data both during storage and transmission. To further enhance privacy, UIDAI introduced Virtual ID (VID), which allows users to authenticate without revealing their actual Aadhaar number. The Limited KYC mechanism ensures only essential data is shared with service providers. Tokenization is another layer of security, replacing Aadhaar numbers with unique tokens for each transaction. UIDAI conducts regular audits of all entities using Aadhaar data to ensure compliance with its stringent privacy and security norms. Non-compliant organizations may face suspension or revocation of their access rights. In addition, the Aadhaar Data Vault policy mandates that Aadhaar numbers be stored in encrypted form within a highly secure environment. UIDAI operates within a broader legal framework that includes the Information Technology Act, 2000, and the Aadhaar (Sharing of Information) Regulations, 2016, which govern the conditions for information sharing and the responsibilities of data handlers. Together, these measures ensure a high standard of accountability in the use of Aadhaar data. How does UIDAI regulate Aadhaar-based authentication services to prevent unauthorized use? UIDAI maintains a comprehensive regulatory framework to prevent unauthorized use of Aadhaar authentication services. The Aadhaar Act, 2016 provides the legal foundation, mandating that authentication can only occur with the explicit consent of the Aadhaar holder. Unauthorized use or data sharing is a punishable offense. To ensure compliance, UIDAI operates a three-tiered audit mechanism, conducting regular audits of entities using Aadhaar data. Entities found in violation of UIDAI's standards may face penalties, suspension, or de-boarding from Aadhaar facilities. Further, UIDAI requires all requesting entities designated as Authentication User Agencies (AUA), e-KYC User Agencies (KUA), and Authentication Service Agencies (ASA) to sign formal agreements. Sub-entities (Sub-AUA/Sub-KUA) are also required to enter joint undertakings. These agreements include strict policy guidelines governing Aadhaar use, and any failure to comply can lead to financial disincentives, penalties, or removal from UIDAI's ecosystem. With the rise of digital identities globally, how does UIDAI benchmark Aadhaar's technological infrastructure against similar systems worldwide? Following the successful implementation of Aadhaar, numerous developed and developing countries have recognized digital identity as a foundational digital public infrastructure (DPI) for effective governance. To stay aligned with global advancements, UIDAI actively monitors evolving technologies such as verifiable credentials, selective disclosure mechanisms, and digital identity wallets. However, any adoption of these enhancements is done in a carefully calibrated manner to ensure adherence to UIDAI's core principles of simplicity, inclusivity, and security, without compromising the integrity of its identity framework.
Zawya
07-04-2025
- Business
- Zawya
India's business correspondence sector to cross $1.7bln by FY2025: Report
New Delhi: India's Business Correspondent (BC) sector will cross Rs 147 billion by financial year 2025 (FY25), charting an impressive 19 per cent compound annual growth rate (CAGR), said a report by BLS E-Services. As per the report by digital service provider, growth is being driven by the expansion of the Pradhan Mantri Jan Dhan Yojana (PMJDY), deeper penetration of Basic Savings Bank Deposit Accounts (BSBDAs), and the increasing popularity of Direct Benefit Transfer (DBT) schemes that channel subsidies and welfare funds directly to beneficiaries. Business Correspondents are bank-appointed representatives who deliver essential banking services in underserved and remote areas. Functioning on a commission-based model, BCs operate as the extended arm of formal banking institutions, enabling last-mile delivery of financial services. They earn either a fixed fee or a percentage of the transaction value, depending on the type of service provided. According to the report, the industry grew from Rs 47 billion in FY2018 to Rs 102 billion in the financial year 2023 (FY23). The report added that as rural households adopt formal financial services, transaction volumes have spiked, particularly in areas where physical bank branches remain scarce. "With over 1.35 million BC agents operating across India as per PMJDY report, these banking intermediaries are enabling millions of people--especially in rural regions--to access financial services. From cash deposits, withdrawals, and remittances to bill payments, Aadhaar-enabled services, and microfinance lending, BCs have become an essential bridge between formal banking institutions and the underserved population," said Shikhar Aggarwal, Chairman, BLS E-Services. The report further added that the rise in BSBDAs under PMJDY has also contributed significantly to the sector's momentum. As per the report, the number is expected to exceed 550 million by FY2025 from 380 million accounts in 2020. Most of these accounts are held by rural customers, and the majority of transactions--such as benefit disbursals under DBT, cash withdrawals, and remittances--are executed through BCs using Aadhaar authentication. According to Lokanath Panda, COO, BLS E-Services, "The Business Correspondent (BC) industry is projected to grow at a 19 per cent CAGR from FY22 to FY25P, expanding from Rs 102.9 billion to Rs 147.4 billion. Key growth drivers include the expanding rural outreach of BCs, rising BSBDA accounts and deposits, increased transaction volumes, and the growing adoption of government DBT schemes." The report added that the technological integration has further strengthened the BC model. Platforms such as UPI, Aadhaar-enabled Payment Systems (AePS), RuPay, and IMPS, along with mobile banking applications, have made financial transactions more secure and accessible, even in the country's most remote corners. According to NPCI data, over 520 million AePS transactions are already being processed every month, with Business Correspondents playing a pivotal role in this volume. © Muscat Media Group Provided by SyndiGate Media Inc. (
