UID to be used for disbursal of funds | delhi | Hindustan Times
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UID to be used for disbursal of funds

delhi Updated: Feb 29, 2012 23:20 IST
Prasad Nichenametla
Prasad Nichenametla
Hindustan Times
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Having put an end to the UID controversy, the UPA government is set to deliver the benefits under the world's largest biometric identity system.

From the next financial year, the government plans to deliver scholarships to lakhs of students and pensions to 2.5 crore pensioners under central schemes - to their accounts, on time - enabled by the Aadhar numbers.

The move comes after questions were raised on the utility of the UID and in the backdrop of concerns of duplication - efforts and resources - over UID and the home ministry's NPR collecting the same set of biometric data.

On Tuesday, Unique Identification Authority of India chairman Nandan Nilekani, rural development minister Jairam Ramesh worked out an architecture using Aadhar number for quick disbursal of old age, widow and disability pensions.

State level agencies will disburse the pensions varying from Rs 200 to Rs 500 with a budget of over Rs 4000 crore - mostly for BPL families.

The problem so far with such disbursals has been that they pass through several bodies - from New Delhi to village level beneficiary - and get delayed by months. In many cases, the poor do not even receive the entitled money. Aadhar-bank accounts and micro-ATM structure, officials state, will eliminate such corruption.

The plan was discussed with social justice minister Mukul Wasnik and officials of minority affairs ministry, who agreed to develop a similar structure to disburse scholarships under their ambit such as pre and post-matric for SC, ST, OBC, minority scholarships and Rajiv Gandhi fellowships for M Phil, Phd students.

"We would develop the system in two weeks and after consent of finance ministry, start implementing from 2012-13," Ramesh said.

Last week, a task force under Nilekani submitted a report on Aadhar enabled payment infrastructure to finance minister Pranab Mukherjee.

The panel suggested that all government payments over Rs 1,000 be made or received electronically and recommended direct deposit of salaries of schoolteachers, anganwadi, ASHA workers and other, who often do not receive salaries on time, to their bank accounts. It proposed a network of 10,00,000 interoperable micro ATMs for people to access their accounts.