Sep 062016

Banks may soon urge customers to link Aadhar to account via ATM

Banks are going to urge their customers to link their Aadhar card with their existing bank accounts. In order to support government initiatives to launch Aadhar in successive mode and to make things easier to unite all details of common man, bank decided to merge Aadhar details of their every customer.

As per that decision, banks are about to launch new facilities for their customer, who can easily merge their Aadhar numbers, with their accounts via home bank ATM machines.

Reason behind this government and bank initiative

Aadhar is now became one of the essentials to receive subsidies from government. Government of India focusing and promoting Aadhar details to be linked with bank accounts in order to make payment and transaction more transparent.

Aadhar Card Individual Identification Number
Aadhar Card Issued by  Unique Identification Authority of India (UIDAI)
Is there any cost of applying Aadhar Card? No, it’s completely free.
Any Valid Period for Aadhar? No, it’s valid for life long
Aadhar linked bank account will be named as AEBA (Aadhar Enabled Bank Account)
Aadhar based Payment Bridge (APB) was successfully implemented by NPCI (National Payments Corporation of India)

There are many government pension and other types of schemes that needs government to transfer money to the account of the people on a monthly or yearly basis. For this transaction the government has to use the account number, IFSC code and other bank branch details of the beneficiary, which is subjected to change. Also it involves high maintenance of records which is quite difficult. So the best option here, for all such transactions would be to link the banks accounts of the customers with their Aadhar card number so that all government payments can be done to the beneficiaries by using just the 12 digit Aadhar card number.

With this linking payments can be made by the government to the citizens without any problem of changed or faulty banks or other details. With the seeding of the Aadhar number the direct transfer of cash on schemes like Jan DhanYojana, cooking gas subsidy, and others will becomes simpler.

What the banks will do to support the initiative?

The government has asked the banks to make available a self-help option in the ATMs using which people could seed their Aadhar Card number with their bank accounts. Banks have also been asked to make this option available in the mobile banking applications.

The main reason behind using ATMs as tool for this initiative, stated by the Unique Identification Authority of India (UIDAI), is that there are more than 1.5 lakh ATMs in the country and all these ATM get high footfalls each day. So in order to make people easily link their card number and account, this could be the best tool.

Even if 10 seeding request is received from each ATM in the country in a single day then in a month the UIDAI would receive around 4.5 crore request, which would make a great difference.

Banks have also been requested to ask the customers to seed their number when they visit the bank branch.

The State government has been asked to conduct ‘Aadhar Divas’ by inviting the citizens of the State to a particular venue to link their Aadhar number with their bank accounts.

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