An Aadhaar card is a unique identification number which is issued to each and every citizen of India. It is a biometric system that stores all the personal details in a database maintained by the government. It provides a unique identity that helps serve various purposes. It can be used for all government programs or services.
The Indian Government found immense success in the implementation and issuance of Aadhaar, every Indian’s Unique Identification Number. Almost 90% of Indian’s have a UID, and the government and total population of India have a UID. The government and various businesses have now started using Aadhaar in innovative and interesting ways.
Advantages of Aadhaar Card:
Here we discuss the myriad advantages of Aadhaar Card, a unique identification system in India. From streamlined government services to improved financial inclusion, Aadhaar offers numerous benefits to citizens.
- Universal address proof: An address proof is required at various places in the country. If you are living away from home, it will become a huge task for you to provide an address proof. You can use your Aadhaar card as an address proof for a variety of tasks.
- Open a bank account, invest in mutual funds or buy an insurance policy: There is no requirement for KYC compliance if you hold an Aadhaar. You can now open a bank account, invest in mutual funds as well as purchase an insurance policy with ease.
- Posting an income tax return verification acknowledgement not required: Aadhaar makes the entire process of tax returns paperless. You can now verify your income tax returns using an Aadhaar OTP and log in to your vault and review past returns using your Aadhaar number.
- Easier EPF withdrawals: You can now link your Aadhaar with the EPF account number. Through it, you can directly approach the EPFO for a withdrawal.
- Receive government benefits directly: You can now obtain all government benefits directly to your bank account. Be it gas subsidy or pension benefits, the process is easy and enables quick receipt.
- Advantage of digital locker: The government has initiated a Digi-locker system for individuals to store their personal documents. The process requires the individual to link their Aadhaar and then store the documents on the government’s secured server.
- Voter card linkage: The Aadhaar card number is linked to voter ids to eliminate bogus voting. This would make it impossible for multiple voter id holders to make use of multiple ids.
- Digital life certificate: The digital life certificate or the Jeevan Praman for pensioners, abolishes the requirement for a pensioner to be physically present in order to receive his/her pension. Pensioner can continue to receive their pension without leaving home.
It is believed that the Aadhaar card will continue to gain prominence over the next few years, additionally the government is trying to link the system with multiple other systems and further enhance its significance.
Importance of Aadhar Card
1. Banking and Insurance
Opening bank accounts, requesting loans, and utilising other financial services have become easier thanks to Aadhar. Know Your Customer (e-KYC) via Aadhar is a quicker and more effective method that requires less paperwork and verification time.
2. Internet and Communications Services
In order to ensure that mobile connections are only granted to legitimate people, linking Aadhar with mobile numbers aids in the verification process. Fraud and improper usage of telecom services are decreased as a result.
3. Services With Subsidies
By ensuring that food grains and other necessities reach the intended recipients without theft, Aadhar identification facilitates the use of subsidized services like the Public Distribution System (PDS).
4. Digital India Initiative
Aadhar is a fundamental component of the Digital India programme, which seeks to guarantee that citizens may access government services online. Access to numerous online services is made possible by Aadhar, which also lessens the requirement for physical documents by facilitating digital identity authentication.
5. Education
The education sector uses Aadhar Card to expedite the distribution of midday meals and scholarships, guaranteeing that benefits go straight to the qualified pupils without the need for middlemen.
6. Healthcare
In the healthcare sector, Aadhar is used for identifying patients and beneficiaries of health schemes like the Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PM-JAY), ensuring that benefits are provided to the right individuals.
7. Employment
In employment schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Aadhar helps in the accurate identification of workers and timely payment of wages.
8. Taxation
Linking Aadhar with PAN (Permanent Account Number) helps in curbing tax evasion by ensuring that one individual holds only one PAN. It also facilitates the e-filing of income tax returns and quick processing of refunds.
Importance of Aadhar Card While Applying Instant Personal Loan
- Identity Verification: Serves as a primary proof of identity, ensuring quick and reliable verification.
- Address Proof: Provides valid address proof, simplifying the loan application process.
- E-KYC Process: Facilitates fast and paperless e-KYC, reducing processing time and hassle.
- Fraud Prevention: Helps prevent identity fraud and ensures the authenticity of the borrower.
- Access to Digital Services: Enables seamless access to digital loan platforms and services.
- Streamlined Approval: Aids in the quick approval and disbursement of personal loans due to efficient verification.
- Compliance: Meets regulatory requirements, making it easier for financial institutions to process loans.
- Unified Document: Eliminates the need for multiple documents by serving as a comprehensive proof of identity and address.
How To Apply Personal Loan Online Via Aadhar Card
To avail personal loans online using Aadhaar Card, follow these steps:
- Install an instant loan app on your phone or visit the loan provider’s website.
- Register with your mobile number and email id.
- Enter the mobile number linked to your Aadhaar card for identity and address verification.
- Provide your 12-digit Aadhaar card number as KYC proof.
- Some platforms may request a scanned copy of your Aadhaar card along with other income-related documents.
- After verifying the submitted documents, the sanctioned loan amount will be credited directly into your bank account.
Conclusion
It is believed that the Aadhaar card will continue to gain prominence over the next few years, additionally the government is trying to link the system with multiple other systems and further enhance its significance.
It is widely anticipated that the Aadhaar card will maintain its significance and possibly grow in prominence over the coming years. The government's efforts to integrate Aadhaar with various systems are set to amplify its importance further. Benefits of Aadhaar card include streamlined government services, improved financial inclusion, efficient identification verification, enhanced security measures, and simplified access to loans and other financial products.
Frequently Asked Questions
1. Is there any misuse of Aadhar card?
Yes, there have been instances of misuse such as identity theft, unauthorized access to personal data, and fraudulent transactions. It is crucial to safeguard your Aadhar details.
2. What is the risk if I lost my Aadhar card?
If you lose your Aadhar card, there is a risk of misuse if it falls into the wrong hands. It's important to report the loss, and you can retrieve a duplicate Aadhar online to prevent potential fraud.
3. What is the primary use of the Aadhar card?
The Aadhar card serves as a universal proof of identity and address, used for various verification purposes across India.
4. Does Aadhaar expire?
No, Aadhaar does not expire. Once issued, your Aadhaar number is valid for life.
5. How can I know if someone is using my Aadhar card?
Check your Aadhar authentication history on the UIDAI website by entering your Aadhar number and OTP. Review the transactions for any unauthorized activity and report suspicious usage to UIDAI immediately.
