Aadhar is a 12-digit unique identification number issued by Unique Identification Authority of India (UIDAI) to all Indian citizens who apply for it. In today’s day and age Aadhar Card is one of the most important documents an individual can hold as it is widely recognised by most institutions as sufficient means for identification and verification purposes. Not having an Aadhar card can result in slightly longer processes, situations like getting a new SIM card, opening a bank account, getting a passport and so on. One can also miss out on the schemes of the government like the LPG Subsidy. If that was not enough, the Aadhar Card will now also secure the use of your ATM cards using Aadhar Authentication. Yes, the use and importance of Aadhar card just keeps increasing day by day.
Infact, Aadhar is already playing a role in easing the demonetisation process. To know more, CLICK HERE.
Aadhar Authentication to make use of ATM Cards Safer?
Aadhar Card is now set to be used to add an extra level of security to your transactions according to a recent notification released by RBI.
Notification Released by RBI say with regards to Aadhar Authentication
The Reserve Bank of India issued a notification last month which is addressed to all the small and big financial institutions that operate in India like the:
- Scheduled Commercial Banks including Regional Rural Banks
- All Co-operative Banks
- Card Payment Networks
- ATM Operators
- Payments Banks and Small Finance Banks
The notifications says…
“With the substantial increase in the number of Aadhar card holders in the country, we advise banks to ensure that all new card acceptance infrastructure deployed with effect from January 1, 2017, are enabled for processing payment transactions using Aadhar-based biometric authentication also.”
What does the above notification by RBI mean exactly?
This particular RBI notification, which has been issued is a very crucial one and can be yet another step towards and even safer banking system for the Indian citizens. The directive basically says that since the number of Aadhar card holders in India has increased and there are 1.7 billion Aadhar cards issued already; the RBI has advised the various banks to adopt a new card acceptance scheme from beginning of January 2017.
Based on this, all ATMs and POS (Point of Sales) machines are to use a two-factor authentication to provide the individuals with a safer economic ecosystem. The first authentication is what a consumer has that is the debit or credit card PIN along with the second level of authentication i.e. biometric which could be the inclusion of retinal or fingerprint scanning infrastructure or both, it is not clear as to which will be employed.
The Aadhar authentication will prevent any risks of a data breach which recently caught a few banks off guard and forced them to freeze a number of cards of their customers. This new step of Aadhar authentication will make sure that any such situations are nullified and avoided to a great extent.
Aadhar Authentication also comes at a perfect time when the entire country is making a massive move towards a cashless economy, this move will add another layer of security as more and more users adopt the use of ATM cards.
We hope this article was helpful. Tell us in the comments, what do you think about this soon to be implemented Aadhar Authentication? Is it likely to improve the banking ecosystem?