Latest news with #PradhanMantriJanDhanYojana
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Business Standard
10 hours ago
- Business
- Business Standard
Microfinance in vicious cycle of debt, high rates, warns RBI deputy guv
India's microfinance sector is facing a "vicious cycle" of borrower over-indebtedness, high interest rates, and coercive recovery practices, Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao has warned. Speaking at an event in Mumbai on 5 June, Rao underscored the urgent need for structural reforms in lending practices to ensure responsible and sustainable credit models. 'The [microfinance] sector continues to suffer from a vicious cycle of over-indebtedness, high interest rates and harsh recovery practices,' said Rao, according to the full speech published on the RBI's website on Monday. He noted that even lenders with access to low-cost funds are charging 'significantly higher margins than the industry norm,' which in many cases 'appear excessive.' Although interest rates on microfinance loans have moderated slightly in recent quarters, 'pockets of high interest rates and elevated margins continue to persist,' Rao said, adding that these practices have intensified stress in the sector, particularly in the current financial year. Concerns over mounting stress Commercial banks have already flagged concerns about growing distress in the microfinance ecosystem, driven by borrower indebtedness, falling rural incomes, and election-related disruptions. Rao called for a shift in mindset among lenders, urging them to stop treating microfinance as a 'high-yielding business' and instead prioritise credit discipline and borrower welfare. 'There is a critical need to curb over-leverage and strictly avoid coercive recovery practices,' he said. He added that while many institutions have sound business models, flaws in organisational structures and incentive mechanisms can lead to 'perverse outcomes' for borrowers. 'This calls for an introspection around the models,' he said. Financial inclusion and historical milestones Rao's remarks were part of a broader speech on financial inclusion, where he highlighted the vital role of access to financial services in reducing poverty, fostering social equity, and promoting economic development. Reflecting on India's progress in this area, he cited key milestones including bank nationalisation in 1969, the introduction of Priority Sector Lending, and the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY). As of 21 May 2025, over 550 million Jan Dhan accounts have been opened, with 56 per cent belonging to women, and cumulative deposits crossing ₹2.5 trillion. Responsible lending and borrower awareness Rao emphasised that increasing access to credit must go hand in hand with responsible lending and financial education. Without adequate awareness, financial inclusion could instead result in poor decision-making, mis-selling, and further debt accumulation. 'To facilitate informed decision-making by the customers and enhance transparency by the lenders, the RBI has mandated that all REs provide a standardised disclosure of key terms and conditions in the form of Key Fact Statement (KFS) to all retail and MSME borrowers,' he noted. Rao's candid comments reflect the central bank's deepening concern over unhealthy practices in India's microfinance space. As the country advances its financial inclusion agenda, the RBI is pushing for a parallel focus on ethical, transparent, and sustainable lending — especially for economically vulnerable populations.
India.com
13 hours ago
- Business
- India.com
11 Years Of Modi Government: 11 Key Achievements That Changed India
photoDetails english 2913420 Updated:Jun 09, 2025, 05:46 PM IST 4th largest economy 1 / 11 India has become the world's fourth-largest economy under the Prime Minister Modi Government. Ram Mandir 2 / 11 The Ram Mandir in Ayodhya is one of the key achievements of the Modi govt, This temple is a significant and historic Hindu temple currently under construction, with the main sanctum consecrated and opened to the public in January 2024. Article 370 3 / 11 In August 2019, Prime Minister Shri Narendra Modi Ji took a visionary decision to abrogate Article 370, which allowed J&K to have its own constitution, flag, and control over most internal affairs, except defence, foreign affairs, and communications. Triple Talaq 4 / 11 Triple Talaq was an instant divorce practice where a Muslim man could divorce his wife by uttering "talaq" three times. India's Supreme Court declared it unconstitutional in 2017, deeming it arbitrary and discriminatory. Jan Dhan 5 / 11 The Modi government launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on August 28, 2014, as a national mission for financial inclusion. GST 6 / 11 The Modi government implemented GST in 2017, unifying India's fragmented indirect tax system into "One Nation, One Tax." It simplified compliance, reduced cascading taxes, and boosted transparency and revenue collection, though some complexities in the rate structure persist. Railways 7 / 11 In the railway sector, many developments took place including the introduction of Vande Bharat to the renovation of many of the old railway stations in a modern way. Airport 8 / 11 Under the Modi government, India observed a significant boost in airport development under the UDAN scheme, which was launched on 21st October 2016 with an aim to boost air travel affordable for the common citizen. New Parliament 9 / 11 India's new Parliament was inaugurated in 2023 to boost the seating capacity for both Lok Sabha and Rajya Sabha. Highways 10 / 11 The Modi government significantly boosted highway development, expanding the national highway network since 2014. 11 / 11 Under Modi government, defence exports have surged to a record high of Rs 23,622 crore in the Financial Year (FY) 2024-25.
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.
Business Standard
15-05-2025
- Business
- Business Standard
BLS E-Services rallies as Q4 PAT jumps 59% YoY to Rs 17 crore
BLS E-Services zoomed 14.30% to Rs 178.50 after the company's consolidated net profit rallied 58.66% to Rs 17.31 crore in Q4 FY25, compared with Rs 10.91 crore in Q4 FY24. Revenue from operations was at Rs 239.21 crore in the fourth quarter of FY25, skyrocketed 224.83% year on year. Profit before tax added 61.78% to Rs 23.33 crore in Q4 FY25, compared with Rs 14.42 crore in Q4 FY24. EBITDA stood at Rs 25.4 crore in Q4 FY25, up 59.3% YoY. EBITDA margin declined 10.4% in Q4 FY25 as against 20.3% in Q4 FY24. On a full year basis, the companys net profit rallied 75.4% to Rs 58.8 crore on 72.3% rise in revenue from operations to Rs 519.4 crore in FY25 over FY24. Shikhar Aggarwal, Chairman, BLSE- Services, said: We are delighted to report a remarkable performance in FY25, as weachieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 500 crore milestone in total income during the year, whichwas reported at Rs 545 crore, a notable YoY growth of 76%. The successful completion and consolidation of Aadifidelis Solutions Pvt Ltd (ASPL) is another milestone we achieved, whichalso aided to our topline growth. EBITDA and PAT too witnessed a robust growth of 72.5% and75.4% respectively, in FY25. As we move forward, our strategic focus is on enhancing digital infrastructure to improveaccessibility and penetrates new market segments. We foresee a significant opportunitywiththe government increasingly outsourcing G2C services to third parties, amidst the growingneed for scalability, cost-efficiency and last-mile connectivity. The Indian Government is focussed on expanding financial inclusion through schemes like Pradhan Mantri JanDhanYojana, Direct Benefit Transfer and others. Meanwhile, the company recommended final dividend at the rate of 10% on face value i.e. 1.00 per equity share of face value of Rs 10 each on 9,08,56,485 equity shares of the company, for the financial year 2024-25, subject to the approval of the members in ensuing annual general meeting of the company. BLS E-Services, a subsidiary of BLS International, stands as a leading technology-enabled digital service provider in India, offering a diverse range of services that encompass Business Correspondent (BC / Rural Banking Outlets) services, Assisted E-services, and E-Governance Services. These offerings are all geared towards grass-rootsempowerment, revolutionizing how essential services are accessed.
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.
