Banking on Aadhaar using India Post Payments bank’s Aadhaar-pay model, without even a bank account, is an incredible decision
India Post Payments bank is a continuous endeavor to make this a basic model once it starts operations in the next few months. India Post CEO AP Singh said that this can change the financial transaction of the country, including the rural areas where post offices play a vital role in Financial inclusion and in the supervision of the Direct Benefit transfers(DBT), which is still around Rs50,000 crore in a year.
Just like MGNREGA payments, which a worker collects in the nearest post office through his Aadhaar number, this will be beneficial to remote areas where it has been a bottleneck for banks in handling transactions. There will be various immediate options with for him apart from just taking cash. He/She can open an account by undergoing the e-KYC process with the help of Aadhaar card authentication or they can take a pre-paid card to use any ATM for withdrawing cash or make payments.
India Post is also planning to train postmen with biometric authentication and payment machines for a hassle free service. It is targeting about 650 districts in the country with the help of people having feature phones and even those who have not, through its network. This shows that the door-to-door banking model is undoubtedly going to be implemented. The only problem is the low mobile and broadband connectivity in rural areas. If this is improved that everything will certainly go smoothly.
35% people in India could avail internet facility, and out of the 65,475, Gram Panchayats with optic fiber laid under the BharatNet project, inconsistent with a report in The Indian express, less than 25% have active internet. So, even though the Government, as declared in the Budget, attains the goal of taking broadband connectivity to 1.5 lakh Panchayats by the end of 2017-18—it will be of help if there is a working internet available in these Panchayats.