Feb 162017

Andhra Bank to allow cashless transactions based on Aadhar Number

We had been hearing about Aadhar becoming mandatory for availing services like Train Ticketing, etc. In a first in the financial sector, Andhra bank has offered to link Aadhar number to its customers’ accounts. After linking the accounts, the user is eligible to be a recipient of various benefits under different government schemes. These benefits shall be directly credited into the accounts of the customers whose accounts have been linked to their Aadhar numbers. Only customers with accounts linked are eligible for the benefits.

Declaration from User

To facilitate linking of Aadhar and bank accounts, multiple channels have been initiated.Whatever channels the user prefers, their linking of accounts shall be completed only upon the successful verification of their Aadhar Credentials.

For seeding (linking of Aadhar number) the customer has to give his/her consent which is mandatory and understand the following provisions necessary for the process:

  • One will have to declare that he/she is submitting his/her Aadhar Number and will also have to provide the consent for seeding the UID number of Aadhar, that has been issued by UIDAI for the aforesaid account.
  • Consent must also be there for mapping the UID number with NPCI, where the DBT will be presented. A declaration clause must also be regarding numerous transfers into the same account.
  • The third part of the declaration must be to keep SMS alert on for the mobile number that has been stated in the Aadhar number and also to use the details that has been mentioned in the Aadhar.

Upon agreeing to the above terms and conditions, and successful verification of the Aadhar Credentials, the User is eligible for Direct Benefit Transfers (DBTs) under the various government schemes.

Usage of Credentials

The following channels are available for linking the User’s account to their Aadhar Credentials:

  1. Internet banking (Only for Retail Internet banking Customers):
  • For Andhra Bank users having online banking activated, log in the internet banking with your account and find the option to register with Aadhar number.
  • The next step is to link your aadhar number with your bank.
  • If one needs to know the status of their request to link/de-link their accounts and Aadhar numbers, one simply needs to click on the “Inquiry” tab.
  1. Andhra Bank ATMs:
  • Upon swiping the card on an Andhra Bank ATM machine, Andhra Bank ATM card holders can see an option called services. Upon selection of “services”, Aadhar registration option is available.
  • Upon selecting the option for Aadhar Seeding, the machine will prompt for entering the Aadhar Number twice. Upon completion of transaction, user will receive a system generated slip confirming their request for seeding their Aadhar number.
  1. Using SMS:
  • This facility is available only to customers who are registered for mobile alerts.
  • Customer has to send a sms requesting the seeding of their Aadhar numbers to their accounts according to the prescribed format given below.
  • To get the Aadhar card registered, Type your account number and Aadhar number. A confirmation message will be delivered in your Inbox, after successful addition.

Declaration of Aadhar

Prime Minister Mr. Narendra Modi’s vision to digitize India and his steps to reduce/remove corruption are very realistic.

AADHAR registration has become mandatory for all Indian citizens as all services shall be requiring AADHAR linking. Banks shall make registration of AADHAR mandatory for all its customers as it shall enable tracking effective. Railway tickets shall be available only if a person has an AADHAR number. AADHAR shall be required for any capital purchases. Even cooking gas and electric supply shall be available only upon verification of AADHAR.

Digital India – 1 step ahead

All these steps are an effort to digitize India and reduce fraudulent practices that cause misappropriation of resources.

With Andhra Bank, a leading PSU, taking the initiative and making AADHAR seeding mandatory to receive benefits from the government, the credibility of AADHAR has increased. Andhra Bank is a reputed institute and a pioneer in the banking field in India. On the 17th of January, 2017, Andhra Bank CMD, Mr. Suresh N. Patel issued a press release stating the seeding of Aadhar to the customer accounts.

Government Disclosure

“I would like to announce one more initiative under digitization which we are starting form today, it is AB e-Vyapar,” he said, adding that the initiative only needs Aadhar number and not even a card or any sort of PIN.

With institutes such as Andhra Bank endorsing digitization, it shall not be long before the whole of India embraces digitization. We can only hope that steps and methods such as these are able to improve the conditions of the citizens and the entire country effectively and as soon as possible. Prime Minister’s “Achche Din” seems a likely truth after the initiation of his various policies. Demonetization was a great leap and digitization is going to be the next milestone to achieve.

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