Aadhaar Authentication Overview :

Aadhaar authentication is the process where Aadhaar number and other details like demographic/biometrics/OTP(One Time Password) is submitted to UIDAI’s Central Identities Data Repository (CIDR) for verification. The CIDR verifies whether the data submitted matches the data available in CIDR and responds with a “YES/NO”. No personal identity information is returned as part of the response.

The aim of Authentication is to enable residents to prove their identity and for service providers to confirm that the residents are ‘who they say they are’ in order to supply services and give access to benefits.(see below fig 1.0 for more information)

Fig 1.0 Aadhaar Authentication Process Flow

Benefits of Aadhaar Authentication :

• Adding new beneficiaries – Aadhaar authentication can be used as proof of identity and proof of address to extend basic social welfare programs . It could be used  for identity proof  by residents in banking & telecom sectors.

• Confirming beneficiary –Various programs where beneficiaries need to be confirmed before delivery of the service can use Aadhaar authentication. This will ensure that the targeted beneficiary is not denied entitlement.

• Attendance management – Can be used in programs (SSA,NREGA) where financial outlay is linked to beneficiary attendance can use Aadhaar authentication for attendance tracking.

• Financial transactions –One of the biggest benefits of Aadhaar-based authentication is expected to be in financial inclusion segment. Micro-ATM devices using Aadhaar authentication have the potential of changing financial landscape of the country.

• Access control –Aadhaar authentication could be used to control access/entry to restricted areas.

Possible Services through Aadhaar Authentication :

• Aadhaar Enabled Payments (including microATM)

• Gas Cylinder distribution / Refund of subsidy benefits, directly to the account holder

• KYC – Bank Account opening

• KYC – Telephone / Mobile connection

• KYC – RTO License Issuing / Land registrations / Affidavits / Police Verifications / BORDER security

• Payments thru Social Schemes ( like MG-NREGA, Pension schemes , scholarship schemes etc)

• KYC – Insurance verifications

• KYC – Employee Verifications by Employers