Your Aadhaar card could soon become a universal payment ID. In a few
weeks, the government will unveil a feature for payments through the
Bharat Interface for Money (BHIM) app by simply entering the 12-digit
Aadhaar number.
Transactions where Aadhaar is listed as a
payment ID on the BHIM app will not require any biometric authentication
or prior registration with the bank or Unified Payment Interface (UPI).
This will make it more mainstream since almost one-third of India
already has Aadhaar numbers, which have been linked to their bank
accounts.
UIDAI is currently working with banks and the National
Payments Corporation of India (NPCI) and expects to roll out the
feature in the "next few weeks."
Ajay Bhushan Pandey, chief
executive of Unique Identification Authority of India (UIDAI), told ET
that almost 38 crore people have already linked their bank accounts with
Aadhaar and can receive payment directly from the UPI app without
having to register first.
Though BHIM allows sending money to a mobile
number, it requires the receiver to be registered with the UPI in order
to accept payment. In turn, the long process of generating a UPI PIN by
entering debit card details may discourage the poor and the illiterate.
"Through Aadhaar, any person - large service providers or independent
ones such as plumbers or carpenters, irrespective of whether they are on
BHIM or not - can get payments for their services directly into their
bank accounts if it is linked to Aadhaar," said Pandey. He added that
almost two crore people are linking with accounts with Aadhaar every
month and total figure for such accounts should go up to 50-60 crore -
half the country - in the next two to three months.
Currently,
there are five payment options on the BHIM app - namely mobile number,
bank account or IFSC code, among others. Aadhaar number will be the
sixth such option. "There are some teething troubles but we are working
on strengthening security," said Pandey.
Making Aadhaar a
payment address is only part of the plan. It will also be possible to
key in the Aadhaar number at a point-of-sale device and authenticate
using biometrics.
Pandey said this feature will be more useful
for those making payments rather than receiving, such as shoppers. "A
pilot is underway at fair price shops in Andhra Pradesh, where
shopkeepers are accepting payments from PDS beneficiaries. The results
are very encouraging," Pandey had told ET earlier.
The process
involving biometrics is complicated and could see failure due to weak
fingerprints, biometric reader device malfunctions or even internet
connectivity issues. On the other hand, integration with BHIM makes it a
relatively hassle-free method.
BHIM app for UPI, launched by Prime Minister Narendra Modi last month, works on both feature as well as smartphones.
UPI is a system that brings multiple banks on to a single mobile
application, merging several banking features, seamless fund routing and
merchant payments, according to the NPCI website. The app was developed
by NPCI and launched in August. However, before the common app BHIM was
launched, there were only 70,000 transactions per day. The number has
since increased to 1,90,000 by the first week of January.
