The Aadhaar Card – A Step In The Right Direction

By BankBazaar | July 9, 2019

Has the advent of the Aadhaar Card brought in a lot of positive changes? Find out the many benefits introduced since its inception.

The Aadhaar Card - A Step In The Right Direction

[LATEST NEWS ON AADHAAR]

Parliament passed an amendment bill on Monday, 9th July, 2019, allowing for the voluntary use of Aadhaar as ID proof for anyone wanting to open a bank account or get a mobile phone connection.

The Aadhaar and Other Laws (Amendment) Bill, 2019,  was introduced in the Lok Sabha on 24th June, passed in the Lok Sabha on 4th July, and finally in the Rajya Sabha yesterday.

In addition to allowing Aadhaar to be used as proof of identity, the bill also has a provision where any private entity that violates the provisions on Aadhaar data will have a penalty of Rs. 1 crore, as well as a jail term.

The amendment provides for the voluntary use of Aadhar for KYC authentication under the Telegraph Act, 1885, and the Prevention of Money Laundering Act, 2002.

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“One for all, all for One” – the Latin phrase best captures the idea behind the Aadhaar Card. This 12-digit number is being increasingly tied with subsidies, banking services and e-verification processes to streamline and speed-up government services. Ever since Aadhaar Cards became a mandatory proof of identity, they’ve introduced a host of benefits.

The Aadhaar Card, dubbed as the largest national identification number project globally, has enabled the government to leverage the power of the digital era.

For those of you who are unsure of the perks that accompany an Aadhaar Card, we have compiled a list of all the benefits you can accrue.

LPG Subsidy:

The government has linked the Aadhaar Card with subsidies bringing them within the framework of digitalisation. This eliminates the need for extensive paperwork and saves time. As a result, you can now partake the widely popular LPG subsidy, PAHAL (DBTL), and have it deposited directly into your bank account. To sign up for the scheme, you will have to fill your Aadhaar Card and bank account details in a form and hand it over to your LPG distributor. Post this, your subsidy will be automatically remitted to your bank account. Though an Aadhaar Card is not mandatory to get the subsidy, using the card is a one-time job that eliminates delays and refilling of forms.

New Bank Account:

The biggest challenge when opening a new bank account is to find someone who can offer a referral. If you move cities, getting a proof of residence becomes a task. But you can wish these worries away if you have an Aadhaar Card. All you need is a letter from the Unique Identification Authority of India (UIDAI), the issuing authority for Aadhaar, stating the same address as the one in your Aadhaar Card and you can get an account in the blink of an eye.

Passport, Pronto:

You have most probably fretted and fumed over the long time taken to procure a passport. Aadhaar helps you sail through the process at full throttle. With an Aadhaar Card, you can obtain a passport in all of 10 days. Police verification, which is time-consuming and precedes handing over of the passport, is kept for later. Now your passport will be home before you finish packing for that Paris holiday.

Additional Reading: All You Need To Know About Passport Renewal In India

Pension Tension:

It is mandatory in some states for pensioners to register their Aadhaar Card with the pension department. This move was designed to put an end to phoney claims on the department. By the same token, the Department of Electronics and IT has introduced an Aadhaar linked Digital Life Certificate or “Jeevan Praman for Pensioner” program. The aim of the program is to digitalise the details of pensioners. This allows the old chaps to sit back at home and have the money directly credited to their bank accounts.

Provident Fund:

The pension-Aadhaar link rule also applies to Provident Funds. Only those applicants who have linked their Aadhaar Card with the Employee Provident Fund Organization (EPFO) will be able to draw their PF account.

DigiLockers:

An Aadhaar Card is mandatory to open a Digital Locker. A Digital Locker is useful when applying for something like a PAN Card.  When you open a digital locker you also get some free online storage space which can be used to store important government documents.

Additional Reading: Everything You Need to Know About PF

Pradhan Mantri Jan Dhan Yojana:

The purpose of the Prime Minister’s People Money Scheme is to make financial services – like banking, insurance and pension – easily available across the length and breadth of the country. An Aadhaar Card is the only document you will need to sign up for this scheme. Some benefits include a free zero balance bank account and life insurance cover. Doesn’t it sound like a win-win offer? Moreover, this scheme is a Guinness world record holder for driving the maximum number of bank account openings in a week.

Here’s how to Link Aadhaar with Pradhan Mantri Jan Dhan Yojana Bank Account.

SEBI:

With an Aadhaar Card, everybody can play the bear-bull game on the stock market. The Securities and Exchange board of India (SEBI) accepts the Aadhaar Card as a valid proof of identity and address. Time to open that Demat account and start trading!

Additional Reading: 4 Thoughts If You’re Looking To Invest In The Stock Market Today

Voter Card Vs.  Aadhaar Card?

In a bid to clamp down on fraudulent voting, the Government kick-started an initiative to tie the Aadhaar Card to the Voter’s ID in 2015. This process will link one Voter ID number to one Aadhaar number. It aims to stop people with multiple voting IDs from rigging the voting process. As another line of security, the rule asks the voter to be physically present when presenting the two cards for linking.

This move is still on the cards as the Supreme Court has pleaded that the linking of the two cards should be a voluntary one.

Here’s How to Apply for Aadhaar Card!

Now that we have demystified the Aadhaar Card for you, you can use your unique number to fast track your loan or insurance application. You can also compare a host of loan and investment offerings on the BankBazaar website.

All caught up on the Aadhaar card? Great! Now experience the convenience of banking by using your Aadhaar card as ID proof!

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2 thoughts on “The Aadhaar Card – A Step In The Right Direction

    1. AvatarTeam BankBazaar

      Hi Ramlal Sherawat, To know more about your Personal Loan eligibility, please click here. Cheers, Team BankBazaar

      Reply

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