Report on Aadhaar Card: From Exclusion

to Inclusion

EXECUTIVE SUMMARY
In the last twenty years, India has undergone a transformation
of its economic and regulatory structures. Policy reforms in this
period have led to the increasing maturity of our markets, as
well as healthy regulation. The emphasis on de-licensing,
entrepreneurship, the use of technology and decentralisation of
governance to the state and local level have in particular,
shifted India from a restrictive, limited access society to a more
empowered, open access economy, where people are able to
access resources and services more easily and effectively.
But despite these efforts, access to finance has remained
scarce in rural India for the poorest residents in the country.
Today, the proportion of rural residents who lack access to bank
accounts remains at 40%, and this rises to over three-fifths of
the population in the east and north-east parts of India.
This exclusion is debilitating. Economic opportunity is after all,
intertwined with financial access. Such financial access is
especially valuable for the poorit offers a cushion to a group
whose incomes are often volatile and small. It gives them
opportunities to build savings, insure themselves against
income shocks and make investments. Such savings and
insurance protect the poor against potentially ruinous events
illness, loss of employment, droughts, and crop failures.
However due to the lack of access to financial services, many of
the Indian poor face difficulties in accumulating savings.
The Unique Identification number (UID), which identifies
individuals uniquely on the basis of their demographic
information and biometrics will give individuals the means to
clearly establish their identity to public and private agencies
across the country. It will also create an opportunity to address
the existing limitations in financial inclusion. The UID can help
poor residents easily establish their identity to banks. As a
result, banks will be able to scale up their branch-less banking
deployments and reach out to a wider population at lower cost.

Inclusion of the vulnerable groups being the summum

bonum and metaphorically speaking, the heart and soul
of Aadhaar project, needs to be examined both from the
Report
on Aadhaar Card: From Exclusion
point of its capacity and its limitation
in effectively
to Inclusion

delivering to the marginalised, an enabler that would facilitate

them to break the vicious circle of poverty and deprivation.
Basic objectives of this project were to analyse the level of
awareness of Aadhaar related facilities and services among the
people in rural as well as urban areas, to check the execution of
the services in those areas, to find out the problems faced by
public while availing Aadhaar Card and spread as much
information to the public through pamphlets and social
networking sites as possible. The method of questionnaire
based survey was adopted for data collection. Some literature
review was also done from the UIDAI (Unique Identification
Authority of India) and other useful sources.
A survey has been conducted to check the level of awareness
and the execution of various schemes of Aadhaar Card among
the masses. A number of questions covering the required raw
data for the project were asked. Based upon that, a full length
analysis from gender and age distribution, knowledge of
various facilities and the execution of services is done with
proper conclusions and inferences. Some suggestions have
been also given in the last to improve the distribution of
Aadhaar related facilities and services to the citizens.

Report on Aadhaar Card: From Exclusion

to Inclusion

INTRODUCTION
The Government of India (GoI) has embarked upon an
ambitious initiative to
provide a Unique Identification, Aadhaar, to every resident of
India and has
constituted the Unique Identification Authority of India (UIDAI)
for this purpose. The timing of this initiative coincides with the
increased focus of the GoI on social inclusion and development
through massive investments in various social sector programs
and transformation in public services delivery through eGovernance programs. The scale of the Aadhaar initiative is
unprecedented and its implementation will involve active
participation of Central, State, and Local Governments, as well
as public and private sector agencies across the country.
Aadhaar has been envisioned as a means for residents to easily
and effectively
establish their identity, to any agency, anywhere in the country,
without having to repeatedly produce identity documentation to
agencies. Aadhaar would thus ensure that residents across
India including the poorest and the most marginalized can
access the benefits and services that are meant for them.
Aadhaar would thus be critical to the government in achieving
its goals of social justice and inclusion over the next decade .
The projects focuses on the awareness of current facilities
provided with Aadhaar card and the execution of the same, the
problems faced by the people while availing Aadhaar card and
the general view and obligation of the public towards the

introduction of this marvellous scheme and the advancement of

the same. It will help us to study the effects of Aadhaar Card
and its services on the citizens and suggest some measures to
improve the distribution of the same.

Report on Aadhaar Card: From Exclusion

to Inclusion

LITERATURE REVIEW
A cost-benefit analysis of Aadhaar
ABSTRACT
This study estimates the costs and benefits of Aadhaar. We find
that
substantial benefits would accrue to the government by
integrating Aadhaar
with schemes such as pds, mnregas, fertilisers and LPG
subsidies, as well
as housing, education and health programmes. Even after
taking all costs
into account and making modest assumptions about leakages,
it has been
found that the Aadhaar project would yield an internal rate of
return in real
terms of 52.85 percent to the government.

ESTIMATION OF COST
The cost of Aadhaar project has been divided into two
categories: First the cost of establishing Aadhaar and second,
the cost of integrating Aadhaar with various government
schemes.
Capital and operating expenditure for developing and
maintaining Aadhaar are obtained from the budget estimates of
Aadhaar. The costs available in the budget are for a period of 7
years, i.e., from 2010-11 to 2016-17.
Integration costs vary from one scheme to another. They take
the form of capital and operations expenses incurred for
developing and maintaining the infrastructure for
authentication using Aadhaar. For programmes that involve
payments through banks, the cost of providing incentives to the
banking channels are taken into account. The cost of biometric
device is assumed at the rate of bulk purchase, and it is
assumed that the cost of replacement every 3 years will fall.

ESTIMATION OF BENEFITS
Aadhaar is potentially useful for reducing leakages in a large
number of government programmes such as PDS and MENREGS
schemes. These schemes have been exhaustively analyzed to
precisely determine the percentage of leakage in these
schemes and make assumptions of satisfactory accuracy in
others .Feasibility and benefits of integrating Aadhaar into the
following schemes is also discussed:
1. Fertilizer subsidies
2. LPG subsidies
3. Education
4. Indra aawas Yojna
5 .Janani Suraksha Yojna

Assessment of the awareness level of people regarding

Aadhaar Card as public well being

Aadhaar Card is unique for a person with finger print and retina
scan. It can used to identify person anywhere in the country.
The user logins to the account using his Aadhaar card number
and the password provided him at the time of registration and
giving vote.
e- Voting model has been integrated with AADHAAR CARD or
Unique Identification (UID) card data base using cloud. By
integrating e-Voting model with cloud infrastructure and
AADHAAR CARD record, percentage of polling would raise and
can supply authentic electoral voting mechanism to satisfy the
need of the voters.
In India, voting system is being done by electronic voting by
means of ballot; the personal identification has been made by
way of Aadhaar card. Unique Identification Numbers issued by
UIDAI carry many wonderful advantages. Firstly they do create
a trustworthy social identity of a citizen, whom everybody can
trust. This kind of identity is very helpful while making
applications for bank loans, phone connections, passports,
visas and admissions at educational institutions. These identity
cards are voluntary but they are being recommended by UID
Authority of India. Many people do not have the Aadhaar Card
because of their knowledge related to the usability of the
Aadhaar Card is poor.
There is really need to intimate the actual usability of the
Aadhaar Card by the government and also how it is useful to
people for the identity and some government process.
The major drawback of Aadhaar card is that the barcode
system is used and any person can get Aadhaar number and
can issue document from government offices.
Based on the all information we suggest that the government
considers only one card for the identity card of the person as
Aadhaar card which is also helpful to provide the different
government activities like to take subsidy and also take
advantages of the different government schemes.

UID Aadhaar Card:

The UID Aadhaar is one of the prestigious projects in India
where a unique identification number is issued to every citizen

can be identified anywhere in the country. The distinctiveness

with registration through Aadhaar number and face recognition
will help to eliminate the bogus voters and will offer strong
security for the secret information about vote. Aadhaar card
has taken its part in the country to solve numerous issues.
Unique identification numbers issued by UIDAI carry various
wonderful benefits and advantages. This type of unique identity
is very helpful while applying for bank loans, phone
connections, passports, visas etc. This research paper assesses
the awareness level of people about the Aadhaar card and
various schemes launched with it and it also encourages the
people to issue the Aadhaar card for the support of different
Government activities initiated for the wellbeing of the general
public. According to the data shown in this paper, a majority of
respondents belonged to the age group of 30-40 years of which
nearly 62% were male participants. Nearly 9/10th of the people
are aware of the UID but only half of them have made their
Aadhaar cards. Majority of people say that they have waiting
and card delivery related problems. Aadhaar card is used by
the Govt. for different subsidy related food, LPG, Health and
Education etc. But there is really a requirement to aware the
people about it and to resolve many of the problems that
people face while issuing the Aadhaar card. The Aadhaar card is
not only an identity card but it is used by the Government as a
wellbeing tool to provide the subsidies. So this project should
be administered properly so that it can create awareness
among the masses and they can avail all the benefits and
incentives provided with it for the general wellbeing.