Dec 062016
 

Aadhar based financial transactions (Debit card and Credit Card)

As Indian government implements the demonization’s of higher currency value recently, peoples across the nation are facing lot of troubles especially the lower middle class and low class people.  In order to, sort the practical difficulties faced by the middle class citizens all across the nation, the central government of India plans to drive people towards the cashless economy with the aid of latest technology.

Aadhar based financial transactions

Cashless Economy

Cashless economy is the term which can be defined as the trades carried out without the usage of cash or currency papers. Where else, it would be carried out either by exchange or by paying the price in digital form (Transferring the equivalent money) to the respective seller’s bank accounts by the buyers.

Here, the central government of India drives the people of India towards the digital form of transaction in order to avoid the black economy. Also, with the aid of cashless economy the inflation rates will be in under control.

Current Situation

As the central government of India, announced about no service charges for digital mode of transactions many merchants have stopped levying charges for digital transactions, however, few merchants still charges 2% of taxes for transactions.

Governments plans to increase the usage of Aadhar cards in the digital payments, UIDAI is about to increase the capacity of bio-metric authentication platform in India from the existing level of 10 crore per day limits to 40 crore. By doing so, it will be helpful for people who owns 12 digit Aadhar card numbers would be able to perform digital transactions without hassles. Also government plans to help merchants though the CSC centers to avail bio-metric authentication handsets, and plans to introduce android based smart phones along with mobile manufactures in India for performing Aadhar based finance transactions.

How Government plans to implement Cashless Economy?

As per the recent statement released by the finance ministry of the India, over 600 million debit cards are in operational in India, similarly around 25 million credit cards are in operational among the Indian. However, cashless transaction are highly used by the high class people in more when compared with the middle class people who always prefer to cash based economy.

  • Now, the current Prime Minster of India Mr. Modi forces young educated adults to teach illiterate people about how to perform the cashless trades.
  • During this crunch period after the banning the higher value currency notes, the central government has removed the service charges which are charged on the usage of card based transactions.
  • India railways has announced that, for booking train tickets via online banking or card payment will not charged any service charges.  By doing so, more number of people who booking tickets in online would be able to enjoy the charges free ticket booking.

With such offers introduced by central government, people opts online mode of transaction as it won’t charges any extra fee also it saves lot of their precious time in standing queues before ATM’s and in front of booking centers.

Aadhar Based Financial Transaction

In last few years, Indian government forces all Indian citizens to get Aadhar cards for each. Being an identity proof, Aadhar card is the collective of information gathered over the each individual along with their bio metric data.

S.No Facts about Aadhar Card In India Detailed Information
1 When did the Aadhar card introduced 28th January 2009
2 Estimated Budget for this Aadhar Card Over 7000 Crore Up to now
3 Official Website for Aadhar Card uidai.gov.in
4 Number of People received Aadhar card Around 1.08 Billion
5 Total Population In India Around 1.25 Billion
6 Percentage of Youths received Aadhar card In India About 99% Youths has 12 digit Aadhar card.

 

With around 80% of people owning Aadhar cards with them, the government of Indian planning to implement the Aadhar card based financial transactions which will very similar to the card transactions. By implementing this Aadhar card based finance transactions, government believes that cashless economy will be achieved among the low class peoples too.

How Aadhar based Finance Transaction planned by Government?

  • In India, near about each and every citizens owns mobile phones, particularly smart phones are in usage at high numbers. This new Aadhar number based finance transaction planned to carry with the aid of mobile numbers.
  • The most highlighting point of the Aadhar number based financial transaction are made without any card and with no pin numbers, just by giving the twelve numbers of Aadhar numbers amount will be transferred.
  • In order to make it promptly, government plans to multi-pronged strategy with the mobile manufactures who produces mobiles in India, banks and merchants all across the nation.

By implementing this all new Aadhar number based transaction, government moves towards the digital payment all over the nation. As per the new multi-pronged strategy mobile phones are manufactured in India and to sale in India must have the default payment option of Aadhar based payment gateway.

The director general of UIDAI Mr. Ajay Pandey, recently expressed his view over the introduction of Aadhar based finance transaction as it would helps people to perform trading without the need to cards and pin numbers, the android based Smartphone users  may enjoy the facility of performing transaction with the fingerprint authentications.

Steps taken by the government

The central government of India has placed a special committee under the direct control of prime minister in order to drive the perfect methodology to follow for implementing the digital payment for the upcoming years. And the committee has the CEO of NITI Aayog, Mr. Amitabh Kant as its one of the members.

Also, government working with the IT departments in order to release the common mobile applications which can perform the digital payment system using the Aadhar numbers by bypassing the credit and debits cards which are existing currently.

Conclusion:

If the implementation of Aadhar based finance transaction ends successful means, it will be a fruitful thing for low class people and merchants to avoid charges for digital payments and there will be easier to perform the digital payments.

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