X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
4 Reasons Why You Must Have Aadhaar - Outside View by PersonalFN
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

4 Reasons Why You Must Have Aadhaar
May 12, 2017

The success or failure of any national level programme can be gauged by 3 parameters:

  • Its reach and effectiveness
  • Positive difference it may bring in one's life
  • Acceptability among masses

If these parameters were applied to test the Aadhaar programme, one of the most important campaigns in India, we must say it's been successfully run over last 7-8 years. And now it's at a crucial juncture: Aadhaar may soon become an indispensable part of our life.

Do you know how may Aadhaar cards have been issued in India? Don't be surprised by its reach.

Until February 28, 2017, Unique Identification Authority of India (UIDAI) issued 112.26 crore Aadhaar. Barring the North-Eastern states, the reach of the Aadhaar campaign has been robust.

Speaking about the Aadhaar programme and its success, The World Bank's chief economist Mr Paul Romer recently said, "The Aadhaar system is the most sophisticated identification programme in the world."

"It's the basis for all kinds of connections that involve things like financial transactions. It could be good for the world if this became widely adopted," he added.

Arguably, there have been some concerns about an individual's privacy that could be breached with Aadhaar.

Speaking about this issue, Mr Romer suggested that, "It should be part of the policy of the government to give individuals some control over the data that the private firms collect and some control over how that data is used."

When Aadhaar is receiving recognition at the highest level, undermining its importance is unwarranted. Rather, the Supreme Court's latest verdict has cleared the way for the Government to launch Aadhaar on a much bigger platform.

Silencing the sceptics, a bench led by Chief Justice J S Khehar passed a judgment, "For giving benefits of welfare schemes, it (Aadhaar) cannot be pressed. They (government and its agencies) cannot be stopped from seeking Aadhaar for non-benefit schemes like opening of bank accounts."

And this is a wake-up call for those who believed until now that it's perfectly okay not to have an Aadhaar number/card/identification.

Soon Aadhaar might be made mandatory for...

  1. Filing income tax returns
  2. Opening a bank account
  3. Getting a new mobile phone connection
  4. Getting a passport

It wouldn't be surprising at all to see Aadhaar replacing PAN in the foreseeable future. Until now, tax evaders were using multiple PAN numbers to dodge their tax liabilities; now it would become increasingly difficult for them.

Similarly, linking Aadhaar with mobile phone connections and passport facility may address some significant national security concerns. Once the Aadhaar is linked to voluntary services, ease of transactions will improve, and the encumbrance of maintaining KYC records will reduce substantially-another positive.

In response to data security issues, Communications And Information Technology Ministry has assured that, "Access to the data repository of UIDAI, called the Central Identities Data Repository (CIDR), is provided only to authorised personnel through authorised secure applications after following well established security procedures and protocols. Security of data is monitored at all the times including in storage. UIDAI has been declared ISO 27001:2013 certified by STQC with respect to Information Security including data repository location which has added another layer of IT and security control assurance. In pursuance of sub-section (1) of Section 70 of the IT Act 2000, UIDAI data repository location has been declared as protected system by National Critical Information Infrastructure Protection Centre (NCIIPC)."

UIDAI has also assured Aadhaar cardholders from time to time about the robustness of the security systems protecting data privacy.

On this backdrop, it seems Aadhaar is going to become an essential support of your identity. It's time you get with the programme!

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "4 Reasons Why You Must Have Aadhaar". Click here!

  

More Views on News

How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

Jun 10, 2017

Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working (Vivek Kaul's Diary)

Aug 21, 2017

Most Indians who cannot find jobs, look at becoming self-employed.

The Key Factor Pushing Gold Up These Days (Outside View)

Aug 21, 2017

PersonalFN explains the chief factor pushing gold prices up of late.

How Unique Are the Companies You Invest In? (The 5 Minute Wrapup)

Aug 21, 2017

One of the hallmarks of successful investing is to look out for companies that have a unique and enduring moat.

You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

Aug 19, 2017

Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

More Views on News

Most Popular

A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

Aug 10, 2017

Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

Aug 8, 2017

'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

Aug 8, 2017

Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

Signs of Life in the India VIX(Daily Profit Hunter)

Aug 12, 2017

The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

Bitcoin Continues Stellar Rise(Chart Of The Day)

Aug 10, 2017

Bitcoin hits an all-time high, is there more upside left?

More

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 21, 2017 (Close)

MARKET STATS