Skip to main content

Soon, Aadhaar Will Work Even Without a Bank A|C

Making A Monetary Difference The upcoming payments bank by IndiaPost will make it possible to send and receive money only on the basis of the Aadhaar number
Your 12-digit Aadhaar number could soon become your single-point payment address.
With the upcoming payments bank by IndiaPost, over 112 crore Indians will be able to send and receive money only on the basis of the Aadhaar number; it won't not matter whether it is linked to a bank account or not.
IndiaPost CEO AP Singh told ET that currently, Aadhaar is not a payment address in itself, but the payments bank, which plans to start operations from September 2017, will change that. The bank, which hopes to cover at least 650 districts of the country in the initial stage, aims to “simplify and universalise“ payments systems.
“We will bring out a solution to make Aadhaar a payment address, which will work with or without a bank account.That means that people who already have an Aadhaar should be able to receive payment from any source,“ Singh, who was part of the founding team of Aadhaar as the deputy director general of the Unique Identification Authority of India (UIDAI), said.
According to Singh, UIDAI had earlier successfully run a pilot with five banks including the State Bank of India to test the model. But the plans could not be taken ahead, he said, adding that given the state of broadband in the country and people's lack of comfort with mobile applications, an Aadhaar-based payment method will make giving and receiving money easier.
Currently, about 40 crore bank accounts in the country are linked with Aadhaar, and every month about two crore people are linking their accounts with the unique number.
Singh had told ET earlier in an interview that the banks approach would be “bottoms-up“ and it will target around 500 million people who have feature phones and around 350 million who are without any phone. “Our USP could be the door-to-door banking with the help of our postmen, which nobody else is doing,“ he said.
IndiaPost's rival Paytm is yet to start its payments bank, but Airtel Payment Bank, launched in November last year, is luring customers with attractive interest rates and its wide reach through its telecom network.
The Economic Times New Delhi,21st February 2017

Comments

Popular posts from this blog

April GST collections at new high despite rate rationalisation in December

Goods and services tax (GST) collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per  cent higher over the previous year.  Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection  was reported.  Of the total collected, the CGST (central GST) contributed Rs 21,163 crore, the SGST (state GST) Rs 28,801 crore, the IGST (integrated GST) Rs 54,733 crore  (including Rs 23,289 crore on import) and cess Rs 9,168 crore (including Rs 1,053 crore on import). After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore  and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion.  “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-wa

SC order on RBI circular: More options for banks to tackle defaulting firms

Lenders also have the option of restructuring the loans Lenders to companies which are under stress could now have three options to deal with them if they  default on loans: take a haircut as part of a one-time settlement, restructure the loans for a longer tenure as they did when corporate debt restructuring  schemes were allowed, or go to the Insolvency and Bankruptcy Code (IBC) for redress.  These changes in the options available to lenders come, according to PE funds and bank lawyers who are involved in the IBC process, in the wake of the  Supreme Court on Tuesday setting aside the 12 February RBI circular, which allowed a 180-day window to banks to resolve a company default. But they can still find a resolution. According to a Reserve Bank of India circular, a loan becomes a non-performing asset when banks cannot find a way of  recovering their money in 90 days. In short, banks still have a window to resolve the default. Lenders can take a haircut as part of a one -time settle

Defaults are Costly: Bankruptcy Law Gives Lenders More Teeth

Lenders can bargain strongly on asset recovery, defaulting borrowers can lose control of co With the Bankruptcy Act in place, banks can breathe easy, at least in the medium term, as corporate borrowers will now intensify their efforts to avoid loan defaults and the likely loss of management control of business, said Moody's Investors Service. This will empower lenders to bargain strongly in matters of asset recovery, while borrowers can gain with lower borrowing costs after three-four quarters. “The (defaulting) borrowers will lose control of the company as soon as the process is initiated,“ Srikanth Vadlamani, vicepresident, Financial Institutions Group, Moody's Investors Service, told ET from Singapore.“This, in itself, should act as a key incentive for them not to default in the first place.“ A few weeks ago, the government passed the Bankruptcy Bill, introducing a time-bound settlement process against loan default. With the Bankruptcy Act, the resolution process-f