Unique ID project – A draft

approach

Unique Identification Authority of India

(UIDAI)

09th September, 2009

Mumbai 1
 Agenda
• Overview of draft approach
– What will UIDAI do?
– Challenge of Identity
– Inclusive benefits
– Features of draft approach
– Risks
– Goals

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 UIDAI will issue numbers, not cards
UID
Unique number
Random number

Name
Parents
Gender
DoB Basic demographic data
PoB and biometrics
Address

UID = 1568 3647 4958 6218

No duplicates due to biometrics

Standardized identity attributes

Flexibility to partners on Know Central UID

Your Resident (KYR)+ database

Profiling attributes IDENTITY – Unique

Transaction records markers of an individual
3
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UIDAI will authenticate IDs online
Authentication - ‘Are you
who you claim to be?’

UID = 1568 3647 4958 6218

1:1 check, no ID fraud

Only YES/NO response, no details – no invasion of privacy
Person can see self-details, no one else can
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Verifying ID is a common challenge
Issue rations Multiple service providers,
same resident!

Cooking gas
insurance
RSBY

ID document ≠ ID
NREGA jobs

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 ID is the only focus of UIDAI
Issue rations
UID is just an instrument

Guarantee to identity

Cooking gas
insurance
RSBY

No guarantee to rights

No guarantee to
entitlements
NREGA jobs

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 Who gets UID number?
UID number
Only identity

No residency status

All, even infants All
residents
Removes ‘cloak of anonymity’

Voluntary

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 Inclusive potential of UID

• Power of identity
• Enhances access to services
• Enables direct benefits to poor
• Marginalised Groups –
Reaching Out
• Eases mobility
 Other benefits of UID system
• Enhance flagship schemes

• Reduce fraud

• Strengthen security

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 Building on the best thinking
Combine databases Plan. Multiple agencies, ‘Greenfield data’
of multiple agencies Comm.

UIDAI
NPR Census approach for completion
Census approach
Demand driven
Partnership model - registrars
Integrated eco-system
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 UID ecosystem – A symbiotic network
UIDAI will partner with multiple registrars

States

Oil UIDAI
Ministry
CIDR Banks

Health
Build business case Insurance / Help registrars get
for registrars RSBY operationally ready
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 UID ecosystem – A symbiotic network
Food &
Panchayat Education
Supplies
Ration Continuous
shops monitoring and
States feedback
Registrar
UIDAI
Oil
Ministry
Banks
LPG CIDR
agencies
Enrolling Branches
agency
Oil Cos. RSBY

Sub-registrar
Field
agencies
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 UID issuing will be demand-
demand-led
NREGA
PAN

Passport
PDS

RSBY

DL

Game changer: ‘Enroll once, identity for life’

KYR for life, ‘self cleaning’ system Expanding ‘circle of trust’

Demand rights, entitlements All India mobility

Access services easily Voluntary

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 UID issuing will be demand-
demand-led
NREGA
PAN

Passport
PDS

RSBY

DL

‘Win-win’ for registrars

X
Leakages KYR cost Inclusive Revenues
reach

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 Uniform enrolment process
Registrar agreements

Uniform standards

Vendor ecosystem

Audit trail

Handling
duplicates, fraud

Update records

Grievance handling

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 Flexibility to registrars
Any ‘client’ for
KYR+ service delivery
Any authentication
device, anywhere
BPL
No device

RSBY

Police
Central UID database
Card

Family

Cell phone
PDS UID Number
Can mandate having UID
Can use UID as primary number
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 Uniformity across system

Enrol.
process

Data fields

Biometrics KYR norms

Standards for universality UID-ready Registrar system

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Multiple authentication methods
Registrar UIDAI -
supported - Offline Online

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 Increasing returns of enrolment
350

300 Parallel enrolments

250 Demand
for UID LPG
200

Value
PDS LIC
150
of UID

100

50 All India annual enrolment

0
estimate (millions)
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10

 Reach critical mass :

– Multiple registrars
UIDs
– Network effect

Central UID database

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 Inclusive coverage
Multiple registrars
 Strategy to enrol entire families and under-
RSBY
served areas
Partner with outreach groups PDS LPG
140

120 Large NREG

100
rural Small
rural
80

60
Large
urban
40

20 Small
urban
0 KYR
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
Annual enrolment estimate across geographic units norms Inclusion
(millions)

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National Rural Employment Guarantee
Act (NREGA) – UID Collaboration
• Immense potential to merge the NREGA and
UID processes to create transparent, effective
and transformational governance
• Philosophies of both are similar -
INCLUSIVENESS
 Financial Inclusion and UID
• Unique Identification number ultimately aims to
permeate different welfare schemes of Government
• Beneficiaries, with UID, will have better access to
services
• Direct payments to beneficiaries is the ideal setting
to reach benefits to those who need to be targetted
• FI will help in this objective of direct payments to
bank accounts of beneficiaries who have UIDs
• Business Correspondent Model and UID
complementary
 Financial Inclusion, NREGA and UID

• UID and NREGA have announced a

collaboration on August 20th
• NREGA jobcards will have UID numbers
• Payments of wages will be based on UID
based Bank Accounts
• Business Correspondents Model with a UID
system in implementation of NREGA can
accelerate Financial Inclusion
 UID adoption can help improve pro-
pro-
poor delivery systems
UID adoption …..… can improve efficiencies

Issue Adopt UID

UID UID adoption

Process
re-
engineer
Improved
transparency
and
efficiency

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 Revenue model can be self-
self-sustaining in
the long run
UIDAI – Policy making and implementation

CIDR – Service delivery, managing database

UIDAI
1.Enrol/ Update 1.Enrol/ Update
CIDR 2.Authenticate
Registrar
2.Avail service
–Basic
–Address
–Biometric

Pricing by CIDR and registrars within UIDAI guidelines

UIDAI will be revenue neutral in the long run

UIDAI will have a compact staff of high quality people

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Managing multiple risks
Adoption

Privacy &
Enrolment
security

UIDAI
Technology Political
CIDR

Scale Sustainability

Ministries
Finance – Revenue/CBDT
on IT PAN cards
Agriculture – FCS on PDS
Home ministry – RGI on
NPR
External Affairs - Passports
Communications and IT –
Telecom and Posts
Petroleum – LPG (Phase 1),
Kerosene (Phase 2)
Consultations
Ministries Other Agencies
Labour & - EPFO, ESIC, RBI and IBA – Banks and
RSBY, Unorganized Workers financial inclusion
Social Security
HRD – SSA etc. SEBI – Capital Markets and
Mutual Funds
Rural Devpt. - NREGA TRAI – Telecom service
operators
Fertilizer – Fertilizer PFRDA – Pensions
subsidy
LIC – All insurance clients
Election Commission – For
adoption
 UID goals can be accelerated with urgency
in implementation
+ ? years
Complete
+ 4 years coverage
600 mill.
UIDs
12-18 months
Faster
enrolment
1st UID
issued
Urgency in
implementation
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 Banks and UID - Collaboration
• Banks are a key partner for the UIDAI
• Banks can be Registrars as well as users of the
authentication service
• UIDAI would publish standards and protocols
in the next 6 months for making Banks “UID-
ready”
• Looking forward for a “win-win” relationship
with the banking sector
Thank you!

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