Design Credits: Vishnu Madhav
We resent paperwork. Admit it, we all do! Haven’t we all cursed the painful task of collating documents when applying for a Credit Card, a loan or a Government Identification card? The lengthy list of documents, which need to be submitted each time to procure a financial or governmental service, is enough to put anyone off.
But good news is just round the corner. Rapid advancements in technology coupled with a widespread adoption of mobile devices has given the idea of paperless transactions a much needed boost. When in full force, a completely digital or paperless transaction is likely to benefit the financial industry the most. To this end, the Aadhaar Card will play a critical role in bringing the plan to fruition in India.
Electronic clearing services such as, NEFT, RTGS and IMPS, are a good example of how monetary transactions can take place in a paperless fashion. These methods have made money transfer services available at your fingertips in just 24-hours, without having the need to exchange paper money. Moreover, you don’t need to generate paper receipts as proof of transaction. A digital copy is mailed to you as soon as the transaction happens. You don’t even have to worry about keeping a record. Just login to your net banking account and all your transaction details will be made available to you.
What do we mean by paperless transaction?
To state an example, let’s assume you are looking for a Home Loan. You fill and submit a loan application online and this is followed by a visit from a banking representative, who will collect or verify your documents. This process not only slows down the loan approval process, but also requires you to go through the tedious process of putting all the paperwork together.
Now, assume you have an Aadhaar Card, which you link to the bank’s website.
First – The bank will be able to automatically fill the application form by drawing details from your Aadhaar Card.
Second – The loan giving bank will be able to verify your documents online without you having to worry you about it.
You can bid goodbye to tons of paperwork if you link your Aadhaar Card to all the services you use. By doing this you can achieve two great purposes– get your work done faster and save a few trees in the process!
What about security of information?
Having your information linked to your Aadhaar Card doesn’t mean that it will be readily available to anyone who has your Aadhaar number. A point to note is that paperless transactions are giving way to digital signatures. It could be an encrypted code or a key, specific to each individual, used to authenticate documents or identity of a person, online. Biometric authentication methods, such as fingerprint or IRIS scan, are also gaining popularity for online verification purposes. The Insurance Regulatory and Development Authority (IRDA) accepts only biometric procedure for the verification of online documents.
Additional reading: Digital Signature Certificates Explained
Digital Wallets and Lockers
As we move towards a paperless economy, an offshoot of it will be cashless transactions. Plastic money, in the form of Credit and Debit Cards, has more or less taken over paper money. But, plastic money too could face its demise in the light of paperless transactions. Technologies like near-field communication (NFC), digital transfer of money and biometric verification have made it possible to transfer credit from one device to another. If embraced across all facets of the economy, it could eliminate the need for paper transactions altogether. However, across the board acceptance of cashless transactions is still a little way off in the future and the full potential of the idea is yet to be seen.
So, the next time you apply for a Loan or a Credit Card, and if your bank accepts it, give paperless transactions a try.
Additional Reading: The Aadhaar Card – A Step In The Right Direction
In the meantime, check out some amazing offerings on loans and Credits Cards. Who knows, you might soon be treated to a top speed application process by using your Aadhaar Card to help speed things along.