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Benefits of Aadhaar Card, Most Important Uses - AllOnMoney

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    Aadhaar program was launched in 2009 with a main objective to give universal identity to every resident Indian.

  • However in the initial stages of enrolment people faced lot of difficulties such as technical snags, incorrect data displayed etc.
    Any individual in India can enroll for the Aadhaar Card. Factors like the age and gender of the person are not important over here. However, they need to be residents of India and also fulfill some other criteria laid down by the UIDAI. Every person can enroll only once and this can be done at free of cost. The Aadhaar Numbers are unique and they stay valid for as long as the person is alive.

    and also the importance of Aadhaar card was unclear. But many of the issues were resolved and people can now get the card with much ease as its acceptance as a mandatory document for various initiatives has been officially made.
    In 1999 after the Kargil war, the Kargil Review Committee, headed by security analyst K. Subrahmanyam, was formed to study the state of national security. It submitted its report to the then Prime Minister, Atal Bihari Vajpayee on 7 January 2000. Among its various recommendations, was the proposal that citizens in villages in border region be issued identity cards on a priority basis, later such ID cards should be issued to all people living in border states.

    In addition to this it will help in reducing the corruption since every individual carries only one unique number.

    Benefits of Aadhaar Card

    Listed below are the most important benefits of Aadhaar card and why it is must for every Indian moving forward…

    1. Aadhaar based Direct Benefit Transfer (LPG Subsidy): The 12 digit individual identification number on Aadhar card is used to get LPG subsidy amount directly in the bank account. This DBTL scheme is named as PAHAL.
    2. To get this benefit you need to visit your area’s distributor and get Aadhar number linked to the 17 digit LPG consumer number.
      With the passage of time, importance of Aadhar card has greatly increased as compared to what it was meant for at the time of its inception. With the new government’s willingness to continue the previous government’s ambitious Aadhaar project, the value of Aadhaar has drastically increased. In future, Aadhar card not only will be useful but also mandatory to avail benefits of various government schemes and services. Let us remind you about few very important uses of Aadhar card in our basic living life.

      Although now you can get direct benefit transfer by linking bank account to the LPG number. Read more about PAHAL scheme.
    3. Jan Dhan Yojana: The guiness world record holder scheme Pradhan Mantri Jan Dhan Yojana (PMJDY) accepts Aadhaar card/number as the only document sufficient to open the bank account. Although you open PMJDY account after producing other documents as well.
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      The benefits offered are RuPay card, free zero balance savings account, life and accident insurance and many others. Read more on how to open PMJDY account with no valid documents.
    4. Passport in 10 days: This benefit of Aadhaar card will relieve you the most! If you have an Aadhaar card, you can get passport in just 10 days. Under this format, police verification will be done at a later date as opposed to the previous rule requiring police verification which used to be time consuming.
      Under the original policy for liquified petroleum gas subsidies, the customers bought gas cylinders from retailers at subsidised prices, and the government compensated companies for their losses. Under the current Direct Benefit Transfer of LPG (DBTL), introduced in 2013, customers had to buy at the full price, and the subsidy would be then directly credited to their Aadhaar-linked bank accounts. This scheme, however, did not take off, as in September 2013, a Supreme Court order put a halt on it. Subsequently, GOI constituted a committee to review the "Direct Benefits Transfer for LPG Scheme" to study the shortcomings in the scheme and recommend changes. The DBTL scheme was modified later as PAHAL by the new government in November 2014. Under PAHAL, subsidies could be credited to one's bank account even if the one did not have an Aadhaar number. Official data show that cooking gas consumption during the January-June period grew at a slower 7.82%, nearly four percentage points less than 11.4% growth in the same period last year.

      Also under the new government’s rule, if you need a passport, Aadhaar number is compulsory.
    5. Digital Locker: Government of India has launched digital locker (DigiLocker) system for everyone for storing all personal document on the government’s server. And sign-up process for DigiLocker requires person to link his/her 12 digit Aadhaar card number.
      The UIDAI is mandated to assign a 12-digit unique identification (UID) number (termed as Aadhaar) to all the residents of India. The implementation of UID scheme entails generation and assignment of UID to residents; defining mechanisms and processes for interlinking UID with partner databases; operation and management of all stages of UID life cycle; framing policies and procedures for updation mechanism and defining usage and applicability of UID for delivery of various services among others. The number is linked to the resident's basic demographic and biometric information such as photograph, ten fingerprints and two iris scans, which are stored in a centralised database.

      Check out benefits of DigiLocker.
    6. Voter Card Linking: Starting 9th March 2015, Aadhaar card UIDAI number would be linked to the voter ID’s. This action is taken to eliminate bogus voters. Once
      an Aadhaar number is linked, it would become impossible for an multiple voter ID card holder to make it’s illegal use, as registration requires voter card holder to
      be physically present and produce Aadhaar card to the polling booth officer for linking.
      During the budget presentation on 29 February 2016, Finance Minister Arun Jaitley announced that a bill will be introduced within a week to provide legislative support to the Aadhaar. On 3 March 2016, the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 was introduced in the Parliament as a money bill by Jaitley. The decision to introduce it as a money bill was criticised by the opposition parties. Ghulam Nabi Azad, an INC leader, wrote in a letter to the Jaitley that the ruling party, BJP was attempting to bypass the Rajya Sabha, as they did not have the majority in the upper house. A money bill is only required to pass in the lower house Lok Sabha. Tathagata Satpathy of Biju Janata Dal (BJD) raised concerns that the project could be used for mass surveillance or ethnic cleansing in the future.

    7. Monthly Pension: All the pensioners from select states will now have to register their Aadhaar card number to their respective department in order to receive
      monthly pension. This move was initiated as there have been fraudulent incidents as beneficiaries requesting pension were found to be fake.
      The PAHAL scheme has covered 118.9 million of the 145.4 million active LPG consumers till March, as stated by the Petroleum Minister in the Parliament. Thereby, the DBT has become a "game changer" for India, claimed the Chief Economic Adviser to the Finance Ministry, Government of India, Arvind Subramanian, for in case of LPG subsidy, DBT had resulted in a 24% reduction in the sale of subsidized LPG, as "ghost beneficiaries" had been excluded. The savings to the government were to the tune of ₹127 billion (US$1.9 billion) in 2014-15. The success of the modified scheme helped fuel marketing companies save almost ₹80 billion (US$1.2 billion) from November 2014 to June 2015, said oil company officials. The DBT for the public distribution system (PDS) will be rolled out in September 2015.

    8. Provident Fund: Similar to pension, provident fund money will be given to the account holder who’ve registered their Aadhaar number with employee provident
      fund organization (EPFO).
    9. Opening new bank account: Aadhaar letter provided by UIDAI is now acceptable by banks as a valid proof to open bank account. In fact, it can serve as an address proof as well provided address on Aadhaar card and address proof perfectly matches.
      Aadhaar is Digital ID Proof - Aadhaar card will be identity proof of every individual in future. Since the details of Aadhar card holder are kept at secure online servers, the bio-metrically verified identity of an individual can be used to confirm the identity of its holder.

      i.e. no need to produce bunch of documents to the banks for opening the account. Check out benefits of linking Aadhaar number and bank account.

    10. “Jeevan Praman for Pensioners”, this system will end the process where pensioner had to be physically present at Pension Disbursing Agency to avail pension.
      Instead all the details of pensioner will be accessed digitally by the agency.
      On 26 November 2012, Prime Minister Manmohan Singh launched an Aadhaar-linked direct benefit transfer scheme. The project aimed to eliminate leakages in the system by directly transferring the money to the bank account of the recipient. The project was to be introduced in 51 districts on 1 January 2013 and then slowly expanded to cover all of India.

    11. SEBI: It is now accepted as a proof of address by Securities and Exchange board of India for investing in stock market. Till now, it was used by SEBI as identity proof.

    Considering the increasing acceptance of Aadhaar card it is must for everyone to get it issued.

    On 18 June 2015, in a high-level review meeting on the progress of the UID project and DBT scheme, Prime Minister Narendra Modi asked the officials to accelerate the delivery of benefits and expand the applications of the Aadhaar (UID) platform. He also asked them to examine the possibility of incentivizing the states, through a one-time sharing of a portion of the savings. It was reported that the government was saving up to 14-15% in the direct benefit transfers of subsidies on LPG to the beneficiaries through Aadhaar.

    It is believed that the card will further be given more importance as more and more government schemes are being launched requiring it as a mandatory document.

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    • 1. www.allonmoney.com/information/benefits-of-aadhar-card/
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    • 2. en.m.wikipedia.org/wiki/Aadhaar
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    • 3. www.mapsofindia.com/my-india/government/aadhaar-card-uses-objectives-and-benefits
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    • 4. www.myaadhaarcard.in/benefits-of-aadhaar/benefits-of-aadhaar/
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