Risks of Aadhaar - Moneylife

Risks of Aadhaar-linked banking - Moneylife
http://www.moneylife.in/article/risks-of-aadhaar-linked-banki...
Signup Login Free Helplines
PERSONAL FINANCE
INVESTING
COMPANIES & SECTORS
ECONOMY & NATION
Feedback
LIFE
Connect with Us
Moneylife Life UID/Aadhaar How Aadhaar linkage can destroy banks
How Aadhaar linkage can destroy

banks
91 comments
+ COMMENT
DR ANUPAM SARAPH | 11/09/2014 01:09 PM |
Even if Aadhaar numbers were proof of identity, which it is not, its use to
make money transfers make financial transfers un-auditable, propagate
money laundering and financial fraud. There is no justification for
introducing an unverified and un-audited number to allow payments and
settlements
The Reserve Bank of India (RBI) is empowered by the Payment and Settlement Systems
Act, 2007 to regulate various payment systems in the country. About 59 organisations are
authorised by the RBI under this Act for setting up and operating payment systems in
India. In its vision document 2012-15 the RBI states its mission is to ensure payment and
settlement systems in the country are safe, efficient, interoperable, authorised, accessible,
inclusive and compliant with international standards. In compliance with international
1 of 7
10/02/2016, 12:11
standards, therefore, all key systems should be secure (that is, have access controls, be
equipped with adequate safeguards to prevent external intrusions, and provide audit
trails), reliable, scalable and
able to handle volume under stress conditions.
101
A payment can be effected through electronic funds transfers and includes point of sale
transfers,
ATM transactions,Ourdirect
deposits or withdrawal
of funds, transfers initiated
by
Overview
Approach
My Moneylife account
FAQs
telephone, internet and, card
payment.
Founders
Stock
Screener
Subscriber Billing Info
Feedback
More in Moneylife
Moneylife Magazine
Write for us
How to subscribe?
Contact Us
Moneylife
Dailyuse
News
& Views
Partner banking
with Moneylife
Serviceyour accountSite
When you
your
banks online
to transfer Customer
money from
tomap
a
Moneylife Foundation
Privacy Policy
Mail us
recipient
youSavers
use a system called
ElectronicCall
Funds
Moneylife Smart
Terms ofNational
Use
us Transfer or NEFT. NEFT is
Advertise
with us
RBIs
own
electronic money transfer system. Your money is transferred to the recipient's
VIDEOS
PK's Romp through India's Financial

account in the hourly schedules to settle the payables and receivables
from
eachFinancial
bank that
Safe And
Smart
Sector
Feedback
Career with Moneylife

Join Moneylife Foundation
Moneylife on Facebook
Moneylife on Twitter
Moneylife on LinkedIn
Get Free Newsletter
For
Students
result from all the NEFT transactions in the hour. In case, yourAdvice
transfer
fails,
your money
+6855 views
is back in your account. If you make larger transfers, say Rs2 lakh and above, then you
will
have toTOP
use STORIES
RBIs Real Time Gross Settlement or RTGS system toStudents
make theSpe...
transfer.
TODAY'S
In this case the gross amount is moved from your account to the recipient account
directly. In case the transaction fails your money is reversed back to you.
PACL Scam: The Australian connection

Moneylife Digital Team
You need to be logged into your bank account to initiate an NEFT or RTGS transfer. Only
a valid bank account can receive funds making electronic transfers the bank. The transfers
leave a permanent audit trail that inhibits money laundering.
The other
side of
intolerance
NPCIs electronic
money
transfer
system
LATEST
COMMENT
Sakuntala Narasimhan
Thanks for the

The National Payments Corp of India or NPCI, a section 25 company, also runs its own
information. Please keep
payment system. The Aadhaar-Enabled Payment System or AEPS, as it is called,
me updated with further
facilitates the deposit of money to and withdrawal of money from Aadhaar-Enabled Bank
news about the PACL.
Accounts (AEBA). AEBA accounts are bank accounts where an Thanks....
Aadhaar number is
mapped to the bank account. This is done by a process called as seeding an Aadhaar
Arjun
number to a bank account with designated banks.
Comment*:
Post your Comment
MORE
How Safe Is Your Identity
Under Aadhar?
Sucheta Dalal
Alert me when new comment is posted on this article
No Aadhaar during Bihar

elections
Please read our Moderation Policy and Terms of Use before posting
Moneylife Digital Team
POST COMMENT
Comment
91 Comments
Prabhakar V Hegde 1 year ago
After receiving the Aadhaar number from the customer, the bank uploads such numbers
Has this been brought to the attention of the PMO? It need to be done now. This
into a NPCI mappergovernment
or a repository
Aadhaar
numbers
for
purpose of routing
has an of
open
mind, I aam
sure heused
will do
thethe
needfull.
transactions to the destination banks. The NPCI mapper contains Aadhaar number along
Reply Link Report abuse
with an Institution Identification
Number or IIN, a unique 6-digit number issued by NPCI
to the participating bank. If you or anyone else change the bank account associated with
your Aadhaar number only the current banks IIN will be associated with the Aadhaar
number.
PACL Scam: The Australian
Now you are all set to make deposits, withdraw money and even make money transfers
2 of 7
10/02/2016, 12:11
Feedback
sites to know more about fake Aadhaar cards and how these are 'officially' given:
Financial Inclusion?
You can go with fake documents or say you have none to your enrolment agency
and just getCorrespondent

a card made. Here is
sting thataccess
shows how
this isbanking
done in Delhi
Banks can appoint a Business
toa provide
to basic
services
(http://www.cobrapost.com/index.php/news-....
using a micro-ATM. These
include
the
ability
to
take
deposits,
dispense
cash
for
You may also like to read the following tip of the iceberg:
http://daily.bhaskar.com/news/RAJ-JPR-sh...
withdrawals, process #funds
transfers, or answer balance inquiries. The Banking
# http://timesofindia.indiatimes.com/City/...
Correspondent is the #last-mile
to replace the village money lender. The Banking
http://uidai.gov.in/parliament-questions... also how money transfers are enabling
money parking,
tax from
evasion:
While
Correspondent only collects
moneylaundering
or handsand
it out
hismoneylife.in/article/how-aa
own account with a parent
the RBI is raising the same concern it is suggesting a solution that will only
bank. The Banking Correspondent
may
issue
a
receipt
for
the
transaction.
There
is
no
amplify fraud See: bit.ly/1AWKDYL!
passbook for AEBA. There are only receipts of transactions. The parent bank has nothing
Reply
Link individual
Report abuse accounts. It only settles payable and receivable
to do with payments to
or from
to the Banking Correspondent.
Now, Good Samaritans can help

victims without the worry of
harassment
Big data help banks but benefits
should be passed on to customers
as well
Don't break law, bend it for
helping citizens, says Dr RC
Sinha
Sudhir Jatar 1 year ago

I shall ask questions, which everyone would understand:
# Why does any one at all need to substitute IFSC numbers issued by RBI with IIN
numbers issued by NPCI (a private company) & account numbers with UID
numbers?
# The above indicates lack of confidence in RBI; why this lack of confidence?
# What is the way ISACA would audit transactions on ABPS and what would they
certify?
Enter your email id here
1,00,000 Readers
Sandeep 1 year ago in reply to Sudhir Jatar

IIN is code for a Bank like SBI and IFSC is a code given to specify branch of Bank
like local branch of SBI. Batch files are sent at bank level and not at single branch
level. Also NPCI is under the wings of RBI only. ISaCA is international audit
agency so just google it, there is tons of info about it.
Sudhir Jatar 1 year ago in reply to Sudhir Jatar

I viewed on Times Now that a Khalistani was in possession of TWO Aadhaar cards
with two different bank accounts!!
No further
comments!would be allowed the option to either open a new
The UIDAI explains that
The resident
bank account or link an existing bank account to Aadhaar at the time of enrolment. Also,
the person can always approach the bank concerned for linking the existing bank account
to Aadhaar. Such accounts are not subject to the requirements of the Anti-Money
M S Prabhakar 1 year ago in reply to Sudhir Jatar
Laundering Rules. The
banks have been pushed to open AEBA accounts repeatedly by the
Ha, ha,
I just saw the reportdated
http://www.youtube.com/watch?v=NXDDOSRMh...
RBI. Through its circular
noha!
17015/14/2012/FI
06 February 2014 the UIDAI
enabled the process of opening new bank accounts through micro ATMs or linkage of
Aadhaar is truly becoming the joke of our nation. I have a solution. If the
existing bank accounts
with Aadhaar.
government
can't understand the technicalities of Aadhaar's pitfalls (neither could
Rupay Cards
they understand schemes of Saradha, Sahara and Lehman Bros.) and leave it to
some minions to defend, it would be wise of them to consider adding a disclaimer:
"Aadhaar Enabled Payment Systems (AEPS) are subject to biometric risks. Please
The Rupay card, a pre-paid
debit card, was launched as the Dhan Aadhaar card in
read your palm (especially, fate line) or consult a palmist before enrolment."
December 2011. It has been co-branded with different financial institutions with differing
Reply and
Linkfees
Report
abuse of these cards are branded as pre-paid cash
operational requirements
. Some
cards and do not require a bank account. Since all Rupay cards would require the ABPS it
is no surprise that all Sandeep
banks were
pushed to enable biometrics and Aadhaar to enable the
1 year ago in reply to M S Prabhakar
Rupay. When there was some resistance to burden all account holders with this new
You should appreciate the point that with Aadhaar in place, future of this guy is
infrastructure pin-based
Rupay
been
sealed
for lifehave
and you
canintroduced.
track this person's criminal history by CCTNS once
those two Aadhaar card are verified in the system. That's where UID is different
From the limited information

onhad
thetwo
specifics
the
Pradhan
Jan
Dhan
from paperavailable
IDs. He also
passports
which
cannotMantri
be verified
anywhere.
Yojana launched on 28 August 2014 promises an Aadhaar Enabled Bank Account (AEBA),
a Rupay Debit Card and
the Accident Insurance cover most banks were offering with the
Rupay Debit card.
It is therefore surprising to learn that that 2.5 crore accounts have been opened without
3 of 7
10/02/2016, 12:11
misled completely.
Feedback
his biometric indicators?

No further comments.(for those who believe Cursory seeing is believing!)
The risks of Aadhar-enbaled

Payment
System (AEPS)
Reply Link Report
abuse
The AEPS is based on the following premises.
Sudhir Jatar 1 year ago in reply to Bal krishna Gupta
1. An existing accountThat
number
and IFSC
code
is precisely
the point.
I am happy that you have grasped the essence.
that uniquely identifies a branch of any bank
Link Report abuse
are not sufficient to doReply
a legitimate
transaction.
2. An account not linked
with
an Aadhaar
sohan
modak
1 year ago
number lacks the KYCI don't
or may
be a fake
think any one is against a national Id card. The problem is that Aadhar is
account.
based on bad software, enrollment methodologies, execution and lack of audit. As
simplean
asAadhaar
that. Nonauditability
3. An account linked with
number = fraud potential. PERIOD.
is genuine and cannotReply
be aLink
fake one.
Report abuse
4. Auditability of Aadhaar number to Aadhaar number bank transfer is identical to an
account number to account number transfer.
Bal krishna Gupta 1 year ago in reply to sohan modak
5. The costs of ABPS are less than the costs of NEFT or RTGS.
MONEYLIFE MAGAZINE
Current | Download | Back Issue

SUBSCRIBE
Are Voter cards, Bank accounts, passports audited?
so theRTGS
CAs will
become
over
and over rich!
The RBI should close Ifdown
and
NEFT
if busy
assumption
1 is true. It is completely
unclear why a third party number should be associated with a genuine account
for identifying the account or the branch.
If assumption 2 holdsSandeep
and accounts
not linked with Aadhaar are fake ones, or lack KYC,
1 year ago in reply to sohan modak
the RBI should be closed down for having enabled such accounts and money transfers
Constructive criticism is always good for any system/society. So any changes that
within and between them
in India.
is surprising
thatsoftware,
the Government
of India does
you would
like toItpropose
for Aadhaar
enrollment methodologies,
execution
and
audit
that
can
make
it
better?
not trust these accounts when it comes to transferring any benefits when its
Income Tax department has used them all along to assess income and even make
refund payments.
Let us examine assumption
3. When
the
Aadhaar number is merely a 12-digit
Bal krishna
Gupta
1 year ago in reply to Sandeep
number assigned to demographic and biometric data submitted by private
Their role is only to criticise a system which will reduce misdirected subsidies by
parties; it cannot be
a proof
at least
80%. of identity, address or even existence. There has
been no verification or audit of the Aadhaar database and therefore it is very conceivable
Link Report abuse
that, as was the case ofReply
Satyam,
huge number of non-existent persons is assigned an
Aadhaar number. There is no basis to regard any bank accounts linked to an Aadhaar
number as belonging Sudhir
to genuine
even
Jataror1 year
ago existing individuals.
Mr. Sandeep,
Mr.
Ananthram to
andchange
Bal Krishna
Gupta perhapsinyou
to make a
Let us examine assumption
4. It is
impossible
the beneficiary
anneed
account
disclosure of your affiliations as you are trolling the website and making baseless
number to account number
transfer.
It isofhowever
possible
to re-associate
statements
in defence
Aadhaar that
is not even
the subject of an
the account
article. You
have even
got personal,
which
shows
that youto
do create
not have different
adequate reasoning to
associated with an Aadhaar
number.
In fact
it is
possible
put across.
accounts and is link
the
same
Aadhaar
different
times.
It isthem
strangeto
that
you
are willing
to ignorenumber
the ruin ofat
a banking
system
if the
Students Special: ...
assumptions behind the Aaadhaar Based Payment System are as highlighted by
If you have the demographic

and biometric details of various real persons, as you would, if
the author.
are advised
to reread
the article
the 5 specific
assumptions
in
you were an Aadhaar You
enrolment
agency,
it would
notparticularly
be impossible
to create
an account
justifying Aadhaar Based Payment Systems reproduced here in case you have an
linked with their Aadhaar
numbers without their knowledge. If you were a financial
open mind:
institution enrolling people it would not be impossible to open multiple accounts in
"The risks of Aadhar-enbaled Payment System (AEPS)
different branches and
link
theissame
number
with them at different times.
The
AEPS
based Aadhaar
on the following
premises.
Safe And Smart Financial

Advice For Students
1. An existing account number and IFSC code that uniquely identifies a branch of
any bank
are not sufficient
to do
a legitimate
Why would one do that?
Different
accounts
can
parktransaction.
money at different times
2. An account not linked with an Aadhaar number lacks the KYC or may be a fake
or even become conduits
for laundering money. Considering that the RBI
account.
suspended the requirements
of anti-money
laundering
rules
tocannot
Aadhaar
3. An account linked
with an Aadhaar
number is genuine
and
be a fake one.
4. Auditability
of Aadhaar
to Aadhaar
number
bank transfer
is identical to
based bank accounts
and enabled
thenumber
opening
of such
accounts
in the
an account number to account number transfer.
absence of a branch
or an
infrastructure
makes
this
very plausible.
5. The
costsaudit
of ABPS
are less than the costs
of NEFT
or RTGS.
Such accounts can also become conduits to claim undeserved benefits from
The RBI should close down the time-tested RTGS and NEFT if assumption 1 is
Government that would
be traced
once
released.
This
is abe
recipe
forwith a
true. It isnever
completely
unclear why
a third
party number
should
associated
embezzling government treasury with no complaints, no audit trail and no
4 of 7
10/02/2016, 12:11
international
exposure
I do
understand
the basics
of
Uniqueness
transferstransfer.
within
and
between
them
in maintains
India.
It is surprising
Government
number to account number
Since
the
NPCI
noneed
log of
ofthat
thethe
previous
identifier(i.e.UID/NPR)
for aaccounts
country when
as populous
as to
India
where fake/ghost
of India does not trust these
it comes
transferring
any benefits
account numbers associated
with
an Aadhaar
numberare
it makes the
such
transfers
completely
/duplicate
and middlemen
beneficiary
govt.
when
its Income
Tax department
has used looting
them all along
tosystem.
assess income and
unauditable.
even make refund payments. In fact, these systems are put in place so that there is
Feedback
How not to become a

victim of cyberfraud.
By Dr Anupam
Saraph
Markets in Turmoil:
What should you do?
by Mr Debashis Basu
How can citizens

participate in the
Make in India effort?
How Safe Is Your

Building
Every
development
country(USA,
Canada, UK, Australia, NZ etc.) you
transparency
and tooriented
curb corruption
in IT Department.
name
it have some
sorttransactions
of uniqueness on
identifier
channelize
the government
Let us examine the 5th
assumption
that
ABPStocost
less than
other
benefits
to common
citizens.3. When the Aadhaar number is merely a 12-digit
Let us examine
assumption
payment systems. In making
such
a
claim
the
NPCI
does
not
do
an
actual
end-to-end
cost
number assigned to demographic and biometric data submitted by private parties;
simplebequestion
tocosts
you/author
is "A or
single
can point
to how
many
people
it
cannot
a proof
identity,
evenUID
existence.
There
hasare
been
no
comparison with any My
alternatives.
Theof
ofaddress
ABPS
that
NPCI
ignores
the
in
a government
database
you combine
the and
demographics"?
verification
or audit
of the ifAadhaar
database
therefore it is very conceivable
cost of the Aadhaar
infrastructure
and maintenance.
It
ignores the costs of
that, as was the case of Satyam, huge number of non-existent persons is assigned
fraud and leakage.Also
ItAadhaar
ignores
the cost
of
the
infrastructure
ofaccounts
micro
ATMs
would you/author
please
share
the
AEPS
premises
quoted
above
an
number.
There
is no
basis
tosource
regardofany
bank
linked
to an or
are
they just
by author?
Aadhaar
number
asup
belonging
to genuine
or even
individuals.
By proper
and having banks switch
to made
enabling
their
accounts
forexisting
Aadhaar.
These
costs
audit, we mean audit carried out in terms of the guidelines issues by the various
would ultimately be
passed
toauthorities
the customer.
regulatory
other
e.g. Association of CAs for financial audits.
Reply
Linkor
on
Report
abuse
Let us examine
assumption
4. identity,
It is impossible
to change
beneficiary
an
Even if Aadhaar numbers
were
proof of
which
it isthe
not,
its useinto
account number to account number transfer. It is however possible to re-associate
Anand 1 year
ago
in reply
to Sudhir
Jatar
make financial transfers,
is
the
best
way
to
make
financial
transfers
an account associated with an Aadhaar number. In fact it is possible to create
unauditable, propagate
financial
is notimes.
different
accountslaundering
and link them toand
the same
Aadhaarfraud.
number There
at different
Dear Mrmoney
Jatar
rational justification for introducing an unverified and unaudited number to allow
If
you have
demographic
various
real persons,
as you
I think
yourthe
arguments
as areand
the biometric
argumentsdetails
in thisofpiece
is making
some basic
payments and settlements.
would,
if youFor
were
an Aadhaar enrolment agency, it would not be impossible to
logical flaws
Example:
create
an account linked with their Aadhaar numbers without their knowledge.
.......................
This
actually
and
reported
in lacks
casesthe
in Mumbai
and be
Chennai.
2. Anhas
account
nothappened
linked with
anwidely
Aadhaar
number
KYC or may
a fake
If
you were a financial institution enrolling people it would not be impossible to
account.
accounts
in several
differentdisruptive
branches and
link the same
Aadhaar
There is no doubt thatopen
themultiple
future may
hold
business
models
for number
with
at different
Fromthem
this you
jump to times.
The way ahead
payments and settlements many of which may be enabled by technology. While

Why
that?
Different
accounts
canwith
park
money
at
different
times
or
encouraging innovation,
itwould
is theone
role
of the
regulator
ensure
that
theseare
dofake
notones,
bring
If assumption
2 do
holds
and
accounts
nottolinked
Aadhaar
or lack
even
become
conduits
for
laundering
money.
Considering
thataccounts
the RBI and
has money
KYC,
the
RBI
should
be
closed
down
for
having
enabled
such
ruin to the nations financial
system.
suspended
the requirements of anti-money laundering rules to Aadhaar based
transfers within and between them in India.

bank accounts and enabled the opening of such accounts in the absence of a
...............................
In an NYU paper titled
Theor
Precautionary
Principle:
Fragility
BlackSuch
Swans
fromcan
branch
an audit infrastructure,
makes
this veryand
plausible.
accounts
also
become
conduits
to claim
undeserved
benefits
from
that would
Basically,
you
are jumping
from
Some
which is
logical
fallacy.
Existence
of
Policy Actions, Nassim
Taleb
argues
that
taking
risks=isAll,
necessary
forGovernment
the
functioning
and
never
beAccounts
traced once
released.
Thishave
is a recipe
Benami
proves
that KYC
failed.for embezzling government treasury
advancement of society.
all risks
aretrail
notand
equal.
Taking into account the
withHowever,
no complaints,
no audit
no punishment.
What's your say?

Can Governor Dr Rajan's
challenge make the RBI staff to
bring in efficiency in work
culture at the 81-year old
central bank?
Yes
No
Can't Say
Enter Code :
change code
VOTE
structure of randomness
in aChartered
given system
can have
a dramatic
onAudit,
which
kinds
of
Second,
Accountants
are not
competenteffect
to do IT
What
you are
Clearly Aadhaar
to Aadhaar
number
bank transfer
is not wants
identical
to an a
and I number
have reasons
to suspect,
Chartered
Accountants
to corner
actions are, or are not,suggesting
justified.
account number to account number transfer. Since the NPCI maintains no log of
piece of cake that is not theirs. And I suspect......
the previous account numbers associated with an Aadhaar number it makes such
transfers
completely
un-auditable.
With the help of probability
asserts that
when
impacts
are not
localized
and
Before, Itheory,
am
in noTaleb
way
whatsoever
related
to Aadhar
Scheme
but instead
I know
quite a few things
about ITpropagating
Audit.
non spreading, interdependence
increases
impacts resulting in irreversible
Let us examine the 5th assumption that transactions on ABPS cost less than other
and widespread damage
and
the probability
ofsuch
devastation,
ultimately
to
thepeople.
point
payment
systems.
In making
claim
NPCI
does
not
actual of
Even
if System
Audit
is required,
itacan
andthe
should
be
done
bydoITan
end-to-end
cost
comparison
with
any
alternatives.
The
costs
of
ABPS
that NPCI
Chartered Accountants
cant IBA,
even do
financial
audit
properly
:)
certainty. The interdependence
of the NPCI,
RBI,
UIDAI
and
the various
government
ignores are the cost of the Aadhaar infrastructure and maintenance. It ignores the
departments are engineered
for what
Taleb characterizes
asofruin.
costs of fraud
and leakage.
It ignores the cost
the infrastructure of micro ATMs
and having banks switch to enabling their accounts for Aadhaar. These costs
ultimately
be passed
to theaccounts,
customer. the RBI has enabled fraud
By enabling ABPS andwould
Aadhaar
linkages
withonbank
propagation across the

entire1 year
banking
industry
that will result in widespread and
Anand
ago innumbers
reply to Anand
Even if Aadhaar
were proof of identity, which it is not, its use to make
irreversible damage. It
is evident
thatisthe
failed
protect
the nations
banking
financial
transfers,
theRBI
best has
way to
maketo
financial
transfers
unauditable,
Before
should
readlaundering
as Before you
little
mixThere
in para
propagate
money
and Ask...a
financial
fraud.
is as
nowell.
rational justification
system from an increased
probability
of devastation.
What you said

Is the govts decision to
withdraw LPG subsidy for
taxpayer with income of over
Rs10 lakh fair?
Yes
No
Can't Say
28.8%
68.3%
for introducing an unverified and unaudited number to allow payments and

Apologies.
settlements.
In the interest of financial prudence the RBI governor, the IBA and the various banks
The
main
points
It will
be useful
tostand
hearthough.
if youimmediately
have any arguments
to justify
these assumptions
and
must invoke the precautionary
principle
and
suspend
all linkage
of Aadhaar
the consequences of the failure of the banking system that follow rather than the
to any financial instrument.
The
RBI
governor
ought
to
declare
a
financial
Reply
Link have
Report
abuse
hot
air you
been
emitting and making personal remarks, which expose your
emergency and freeze
all Aadhaar linked bank accounts and reverse these
ignorance.
transactions.
Thanks for casting your votes!

View Previous Polls
The PMO must revisit the UPA projects that have been allowed to be carried
forward. Given the multiple institutions involved, it would be fitting to set up an inquiry
commission that will include voices that have raised caution in the interest of the nation
and have a mandate to minimize the damage to the country and suggest the way ahead. In
the meanwhile, it would only be prudent to suspend all linkages to the Aadhaar number.
The Supreme Court of India has several pending public interest litigations (PILs) on
Aadhaar linkages and it would prudent to have a special court to issue a stay on all
Aadhaar linkages till the cases are heard and at the same time hear the PILs expeditiously
given the extent of financial ruin that Aadhaar can bring to India.
5 of 7
10/02/2016, 12:11
Feedback
of arguments and have to resort to replicating the arguments of the author of the
prudent banker lose sleep,

may not have any prudent bankers left anymore. It is
originalwe
article!
evident that our policy makers have neither the time nor inclination to apply themselves
It appears you have not either had the time to peruse or the ability to comprehend
to the implications ofthe
their
actions nor to seek counsel to protect the nation and its assets.
arguments that have been put up all this while. All contrarian arguments are
therefore
air mess
and why
not financial
- they needinclusion
to be understood
Embroiling the unbanked
intohot
this
is no
- it is first!
a debt warrant.
Firstly there are no 'Riskless' systems in existence. All that can be done is to try
and reduce the risks in any system to an acceptable level. Additionally the risks
Some important Dates
have to be balanced against the returns.
In the case of Govt benefits disbursal the risks of NOT having a system (which is
Date
Particulars current state wherein leakage is costing the country billions)far outweighs the risk
of having a system like Aadhar which off course can be improved upon based on
actual learning on the ground.
Dec-08
Incorporation of
National the
Payments
of India
Secondly
cost ofCorporation
each day of
delay(NPCI)
in implementation is also horrendous and
thus the argument is for not delaying any further.
28-Jan-09
Planning Commission of India Notifies the UIDAI with mandate to create a UID.
Apr-09
Certificate of Commencement of Business issued to National Payments Corporation
14-Dec-09
NPCI takes over ATM switching service to banks in India through National Financial
Thirdly the argument that Dr Saraph's article is more researched and well founded
to the extent that Aadhar needs to be scrapped essentially derides the competency
of institutions like RBI besides off course the PM and all policy making bodies.
of India (NPCI)The underlying charge that all these institutions beside being incompetent are also
bent upon harming the national interests is also simply ridiculous.
Switch from Institute of Development and Research in Banking Technology (IDRBT)

Apr-2010
UIDAI whitepaper: From Exclusion to Inclusion with Micropayments
13-Dec-11
credentials
are inand
public
http://in.linkedin.com/in/baalkee
The Standing My
Committee
on Finance
urgeddomain.
the government
to reconsider and
Bal krishna Gupta 1 year ago in reply to Sudhir Jatar
I am an IITK graduate and have served a leading PSU Bank for 36 years. I have no
direct/indirect; oblique/hidden link with anybody interest in the business of
ramifications. Aadhar at any micro/macro level.
review the UID scheme and also the proposals contained in the Bill in all its
27-Jan-11
AsRBI/2010-11/389
there are 100sDBOD.AML.No.
of millions of 77
non
Aadhar Bank accounts
RBI Notification
/14.01.001/2010-11
making also and will remain
and would be used for financial transactions of bigger magnitude, NEFT and
anti-money laundering
rulesnot
applicable
bank accounts
openeddown.
with Aadhaar.
RTGS need
be andfor
should
not be closed
2. The transfers thru AAdhar based accounts will be only for Subsidies or by the
28-Sep-11
marginal
labourersRBI/2011.
who maintain
at banks at relaxing
their place of work as well
RBI Notification
12/207DBOD.AML
BC. No.accounts
36/14.01.001/2011-12
as at native places, for frauds to take place staff at both places should also collude
with them that too for petty gains as the amounts transferred would be only a few
thousand rupees.
anti-money laundering rules for bank accounts opened with Aadhaar.

Dec-2011
Dhan Aadhaar Yojana launched
17-May-12
phones
or ATM Debit
cards.
RBI Notification
RBI/2011-12/566
DBOD.
No. BL. BC. 105/22.01.009/2011-12 on
3. Even now people have facility of transferring money anywhere through mobile
financial inclusion
and banking
4. How
money correspondents.
laundering would increase overnight is not understood.
12-Mar-13
5. As
the scheme
runs
theSeries)
experience
gained
problems faced can be tackled
RBI Circular RBI
/ 2012-13
/ 436 A.P.
(DIR
Circular
No. 89and
on revised
and due precautions can be built viz maximum annual limit per Adhar Card or
Aadhar Linked bank Account.
guidelines for money transfer schemes.

1-Jul-13
RBI Master Circular

RBI/2013-14/1
Master
No.1transactions.
/2013-14 on money
6. Money
launderers
dontCircular
do chindi
Theytransfer
follow hawala/angadiya or
courier routes to do their "business"
service scheme.
7. Please stop beating around the bush and come to the brass tacks.
1-Jul-13
RBI Notification RBI/ 2013-14/31 UBD.BPD. (PCB).MC.No.16 /12.05.001/2013-14
8. Nilikeni
the board
much later.
What
axe he was
to grind in tUIDAI I
specifying obligations
of thecame
bankstounder
the prevention
of money
laundering
act of
dont know or answer as I dont know the gentlemamn oither than the news about
him in the public domain. 9.As far as finding fault is concerned, their are
shortcomings in the Voter machines too, Voter cards and rations cards are also
issued
in wrong names.
But opening
such cases
not the
reasons
that VCs or ration card
UIDAI Notification
17015/14/2012/FI
enabling
new are
accounts
through
micro
system should be ignored.
2002.
6-Feb-14
ATMs
Why is the "Dr", "Professor" silent and not answering the criticism?
28-Aug-14
Pradhan Mantri Jan Dhan Yojana launched

(Dr Anupam Saraph is a Professor, Future Designer, former governance and IT advisor to
Bal krishna
Guptaand
1 yearthe
ago in
reply to Bal
krishna Gupta Forum)
Goa Chief Minister Manohar
Parrikar
World
Economic
The naysayers wanted disclosures and after disclosures they have started new sets
of comments.
Bura jo dekhan main chala....
6 of 7
10/02/2016, 12:11
Feedback
to defend Aadhar as is done by Anantharaman. Oh, Modi, who was against

Aadhar, is now convinced otherwise and how can he make a mistake ? This is the
kind of argument that produces no-brainers. Of course, Geeks have a vested
interest in defending Aadhar that has been a huge baked (oops, cooked) bread and
butter for them. Their trishuls (computers) cannot make mistakes nor can their
programming be faulty, viz based on incomplete parameters! Wake up call is again
due, come what Modi and his cohorts think. Nilekani's fraud is being owned by
Modi?
Page
7 of 7
10/02/2016, 12:11

Risks of Aadhaar - Moneylife

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Risks of Aadhaar - Moneylife

Transféré par

Droits d'auteur :

Formats disponibles

Risks of Aadhaar-linked banking - Moneylife

Signup Login Free Helplines

COMPANIES & SECTORS

ECONOMY & NATION

Moneylife Life UID/Aadhaar How Aadhaar linkage can destroy banks

How Aadhaar linkage can destroy

DR ANUPAM SARAPH | 11/09/2014 01:09 PM |

Risks of Aadhaar-linked banking - Moneylife

PK's Romp through India's Financial

Signup Login Free Helplines

Career with Moneylife

PACL Scam: The Australian connection

Thanks for the

Post your Comment

Alert me when new comment is posted on this article

No Aadhaar during Bihar

Prabhakar V Hegde 1 year ago

PACL Scam: The Australian

Risks of Aadhaar-linked banking - Moneylife

Signup Login Free Helplines

and just getCorrespondent

Now, Good Samaritans can help

Sudhir Jatar 1 year ago

Enter your email id here

Reply Link Report abuse

Sandeep 1 year ago in reply to Sudhir Jatar

Sudhir Jatar 1 year ago in reply to Sudhir Jatar

From the limited information

Risks of Aadhaar-linked banking - Moneylife

Signup Login Free Helplines

his biometric indicators?

The risks of Aadhar-enbaled

Current | Download | Back Issue

Are Voter cards, Bank accounts, passports audited?

Students Special: ...

assumptions behind the Aaadhaar Based Payment System are as highlighted by

If you have the demographic

Safe And Smart Financial

Risks of Aadhaar-linked banking - Moneylife

Signup Login Free Helplines

How not to become a

How can citizens

How Safe Is Your

The way ahead

payments and settlements many of which may be enabled by technology. While

transfers within and between them in India.

What's your say?

propagation across the

What you said

for introducing an unverified and unaudited number to allow payments and

Thanks for casting your votes!

Reply Link Report abuse

Risks of Aadhaar-linked banking - Moneylife

Signup Login Free Helplines

prudent banker lose sleep,

Certificate of Commencement of Business issued to National Payments Corporation

Switch from Institute of Development and Research in Banking Technology (IDRBT)

UIDAI whitepaper: From Exclusion to Inclusion with Micropayments

Bal krishna Gupta 1 year ago in reply to Sudhir Jatar

anti-money laundering rules for bank accounts opened with Aadhaar.

Dhan Aadhaar Yojana launched

guidelines for money transfer schemes.

RBI Master Circular