Aadhaar: The Force leading the foundational Identity to India-First Innovations

July 9, 2022

2 min read

According to Saurabh Garg, CEO of the Unique Identification Authority of India (UIDAI), Aadhaar has provided a vital presence-less foundational identity layer to several of India’s first innovations led by the India Stack, such as e-KYC, design, Digilocker, UPI, Rupay, UPI, and FASTag, on top of which various other layers and use cases get built.

He said India had produced 133 billion Aadhaar IDs while addressing MeitY’s week-long Digital Week (Ministry of Electronics and Information Technology). “There is near-universal adult Aadhaar saturation, and the overall saturation rate is 93%. The balance population is 10.02 crore. In the year 2021-22, India saw about four crore new enrolments and more than 16 crore Aadhaar updates,” Garg said.

According to Suresh Sethi, CEO of Protean of Technologies Ltd., these digital IDs in India were developed even though many people throughout the world are unable to access services because they lack an ID, which makes it difficult for them to participate in social security programs.

According to Sethi, who cited reports from the World Bank and McKinsey Analysis, one billion people worldwide lack an official identity document, and every second woman in low-income countries lacks an ID, which limits their access to essential services and participation in political and economic life.

Aadhaar is vital for Secure Digital Payments

Sethi outlined use cases for a national digital identity, outlining how people interact with institutions and produce shared value by using digital IDs in six different roles. It facilitates registration and authentication between customers and commercial providers of goods and services, secure digital payments, and electronic know-your-customer (e-KYC) for financial services.

According to Sethi, citing a McKinsey report, a digital ID facilitates formalized business registration, high-assurance contracting, and transacting between micro-enterprises and consumers. It also facilitates talent matching, automated background verification, and effective payroll services between workers and employers.

It enables taxpayers to file taxes digitally and aids in their ability to get government benefits that are paid out immediately. Additionally, it promotes civic engagement by facilitating online voting, assisting the government in verifying political donations, and raising school enrollment. Formalized land ownership and easier sales and purchases are some advantages for asset owners.