aadhaar, direct benefit transfers and their...

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Aadhaar, Direct Benefit Transfers and their impact

11th March 2013

UIDAI www.uidai.gov.in

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http://www.uidai.gov.in/



Structure of the presentation

• Overall mandate of the Aadhaar Project • Aadhaar and it’s potential

• Direct Benefit Transfer and Aadhaar

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Overall mandate of the Aadhaar project

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Context • Providing a formal identity proof to millions of

residents • This identity proof would be a gateway to

access services • Need to streamline government expenditure –

cut wastage and leakage • Need for a transparent and accountable

system of public expenditure • Social inclusion project with a developmental

focus

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UIDAI issues Aadhaar numbers…

UID = 1568 3647 6218

UID Unique number Random number

Basic demographic data and biometrics stored

Standardized identity attributes No duplicates(1:N check) Minimal demographic data collected

Name

Parents

Gender

DoB

PoB

Address


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… and authenticate IDs online, real-time

UID = 1568 3647 4958

Central UID database

1:1 check, no ID fraud

Only YES/NO response, no details – no invasion of privacy

Person can see self-details, no one else can

Authentication - ‘Are you who you claim to be?’

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Where are we today…

• Started issuing in Sept 2010 • 28 crore Aadhaars issued so

far • More than 30 crore residents

enrolled • Target – 60 crore by 2014

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Enrolment centre, Andhra Pradesh

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Enrolment Centre, Jharkhand

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Enrolment Centre, Puducherry

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Aadhaar and it’s potential

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Service Delivery potential due to Authentication

• Transactions normally require verification of identity • Aadhaar online authentication will provide a common

platform which can be used across all transactions and other applications.

• Entitlements should reach the intended beneficiary – non-transferability can be ensured

• This can be effectively done by authentication at the point of service delivery

• Many sectors will be able to use as a proof of presence for the beneficiary

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Empowerment, Choice and Convenience

Identity

•Unique identity to every resident of India which is nationally valid – especially useful for those who have no proof of identity

Mobility

• Aadhaar authentication because of its on-line nature can

also be verified anytime, anywhere.

Gateway to Services

• As Aadhaar can become a KYC for a whole range of products and services (bank accounts, mobile connections, LPG connections, state Govt. services, insurance, etc)

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Empowerment, Choice and Convenience

Convenience

•Availability of many access points to withdraw benefit make it far more convenient for the intended beneficiary.

Auditable and Transparent

•On-line real time transaction authentication ensures that the entitlements reach intended beneficiary.

Choice

• Interoperable Micro-ATM/FPS network can ensure that the beneficiary has choice. This enhances her/his empowerment.

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Aadhaar based government application pilots – Country wide spread

Aadhaar Applications

in States

Jharkhand MG-NREGA, Scholarships

Andhra Pradesh

PDS

Maharashtra Social

Security Pensions

Karnataka LPG Subsidy

Sikkim Employee

Salary

Tripura Old Age Pension

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MNREGA payments through Micro-ATM in Jharkhand

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PDS delivery based on Aadhaar Authentication in East Godavari, Andhra Pradesh

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Old age pension payment in Tripura

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Aadhaar platform for Banking

•Open Bank Accounts using Aadhaar – Sufficient KYC •Existing Bank Account can be linked to Aadhaar number Access

•Transfer funds to Aadhaar Enabled Accounts •Simplifies disbursal of funds – uses only one account for all

disbursals – Convenience for the beneficiary Address

•Withdrawal and deposit, check balance •End to end auditability and traceability • Inter-operable, portable anytime anywhere •Better than local, non-interoperable solutions that limit choice

Transactions

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Mobile connections Bank A/Cs, Insurance, etc.

State Government Services

Aadhaar accepted as KYC for…

1 2

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LPG Connections 3

Train Travel 5

? Many other services…

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1. “Instant” Opening of Bank Account through a Micro-ATM based on Aadhaar authentication – hugely empowering to the unbanked

1. The Aadhaar e-KYC service instantaneously provides basic data

(name, address, date of birth, gender, photograph) of the beneficiary to the Bank upon successful Aadhaar authentication.

1. The e-KYC service can scale up to lakhs of transactions on a

daily basis

2. Provides convenience to the unbanked. Enables opening of large number of bank accounts on scale.

Aadhaar e-KYC Service

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Direct Benefit Transfer and Aadhaar

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All direct cash transfers into one account

Aadhaar Payments Bridge

Multiple Schemes

One Aadhaar linked account

APB Compatible with CPSMS

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1111 2222 3333

End-to-End Direct Benefit Transfer Enabled by Aadhaar

Pension

MGNREGA

Scholarship

xxxxx

----- -----

Radha 111122223333

xxxxx

yyyyy ----- -----

Radha 111122223333

xxxcccc ----- -----

Radha 111122223333

Bank

1111 2222 3333

1. Aadhaar to de-duplicate databases

4. Withdraw from any MicroATM –

Choice and Convenience

2. Aadhaar as KYC to open bank account

Aadhaar Payment Bridge

3. Aadhaar as a payment destination - Bank Account portability - Many schemes, one Aadhaar linked bank account

5. Auditability and traceability of transaction 24



Micro-ATM transactions 1. Handheld device and battery powered 2. Online connectivity through mobile

network 3. Micro-ATM standards set by RBI and IBA

(manufactured by multiple vendors) 4. Biometric scanners are certified 5. Interoperable devices and can work for

any bank and any BC

Total online transaction time less than 15 seconds – Verified on the ground from Tripura, Jharkhand, Maharashtra, and Andhra Pradesh

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4. Authenticate

2. AADHAAR number, money transfer instruction, biometrics

Convenient cash withdrawal Resident

BC with Micro-ATM

Ram’s bank account

BC’s bank account

Interoperable Switch

1. Withdrawal request

3. Forward to switch

6. Debit

7. Credit

8. Inform: Call / SMS

9. Cash

UIDAI

5. Authorize

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4. Authenticate and execute

2. Money transfer instruction + biometrics

Inclusive convenience banking Resident - Ram UID 2563 8564 4663

BC (Kirana, SHG, PO etc)) With Micro-ATM UID: 7233 5968 3094

TransferMoney From UID 2653 8564 4663 To UID 7233 5968 3094 Amount 300

Ram’s bank a/c

BC’s bank a/c

NPCI switch

ID mapper

1. Withdrawal request

3.NPCI request

5. Authenticate

6. Debit

7. Credit

8. Info- IVRS/ SMS

9. Cash

Any BC

Any micro-ATM

Any amount

Any Bank

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Use of Data Analytics in

monitoring implementation

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Dimensions of the Project • Scale

– Geographically – Daily Operations across India – 25,000+ stations deployed

• Speed – ~1m/day mark reached in less than 18 months of

1st Aadhaar Generated

• Operations Model – Public (Registrar) -Private (EA) partnership driven

Data Analytics plays a crucial role to provide neutral insight to UIDAI as well its partners.



Relevance of Data Analytics

• Neutral & Objective – Facts validating opinion, increases confidence of team and

management in pursuing directions • Cost Economics

– Automation in data collection – Quality of Insight – capability to understand trends across

large sample space • Empowers with Agility

– New Initiatives and its impact can be analysed for rapid course correction.

– Enables audit of large operations with details in low cost



Uses of Data Analytics

Take Early Corrective Action(s) Enable Improved

Decision Making



CASE STUDIES OF - DATA ANALYTICS



All India – Upload Time Delay (days)

Monitoring & sharing packet upload delay information with partners, incorporating new policy initiatives, has led to significant improvement in minimising the delays.



Data Analytics empowers to differentiate the field reality from the rumors. Here we monitor, changes to enrolment time with changes in software version to evaluate between software improvement to economic viability for partners and resident time involvement.



Distribution of Enrolment Duration (min)

Deep-dive analysis on enrolment time, further provides insight on majority of enrolment cases versus few outliers cases.

*sample size is 20-55Lac enrolments in each month



Comparing distribution of Aadhaar & Biometric Exception (BE)

Outliers : BE % is much greater than Aadhaars

Generated %

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Empowers the management to identify areas where detailed audit is required.



BE Cases – detailed analysis



Monitoring and awareness has lead to reduction in dubious Bio-Metric exceptions cases. Awareness is maintained with partners, that this monitoring should not lead to exclusion of genuine Biometric Exception Cases Aadhaar is always stretched itself to be as inclusive and resident friendly as possible.

Biometric Exception as a % of Enrolment



SHARING DATA @ UIDAI



Public Data Sharing https://portal.uidai.gov.in/

https://portal.uidai.gov.in/uidwebportal/dashboard.do

https://portal.uidai.gov.in/uidwebportal/dashboard.do



Public Data Sharing • GoI has notified the “National Data Sharing and Accessibility

Policy (NDSAP)” in March 2012 • Datasets pertaining to Enrolment are available through the

UIDAI data portal • Data can be accessed manually as well as Programmatically

https://data.uidai.gov.in Dataset Frequency

1 Aadhaar Generated by State, District Enrolment Daily, Incremental 2 Aadhaar Generated by Registrar-EA Enrolment Daily, Incremental 3 Aadhaar Generated by Gender & Age band Enrolment Daily, Incremental 4 Enrolments processed in detail Enrolment Daily, Incremental 5 Total Aadhaar Generated Enrolment Daily, Cumulative

https://data.uidai.gov.in



Automated Meta-data Capture • Enrolment Packet

– Individual Screen Timings – People Involved – Geographical Location – Several Quality parameters – Devices – Date & Time of Operations – Any Exceptions

• Sync Operations • Packet Upload • Visual Quality Checking • Biometric Uniqueness

• Aadhaar Generation • Print Letter Generation • Physical Letter Printing • Letter Dispatch • Confirmation / Return

• Authentication

– Agency Involved – Type of authentication – Response Timings – Success/Failure – Failure Reasons



Use of Data Analytics in Authentication

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Early Correction Action(s)

• Some examples from Aadhaar authentication service that helped improve service during early stages of roll out: – Better control of device level changes through

backend Response Error analysis – Early fraud detection / leakage prevention by

doing Number of Attempts analysis – Feedback to respective ecosystem partners to

fine-tune their systems



Example 1: Better Control of Device Level Changes

Return Code January February March April 500 48 36 0 501 0 0 4 4 502 0 2 48 19 510 67 0 0 541 0 0 42 167 561 567 67 19 562 73 18 3 3 563 0 5597 58462 564 0 0 0 1 566 0 18 0 68 570 1 0 0

Load testing done by the ASA

Indicates possible uncontrolled

changes at devices

• In the authentication service, UIDAI has developed different return codes which represent various reasons why an authentication request may get rejected.

• An early analysis of transactions and the return code helped identify problems at device level application and frequent changes in them.

• Accordingly, partners were sensitized and corrective action taken to improve the success rate.



Months 1 Attempt 2 Attempts 3-5 Attempts

5-8 Attempts

>8 Attempts

February 978 352 417 60 23

March 1320 402 441 34 9

Example 2: Early Fraud Detection / Leakage Prevention

• During early days of pilot for LPG cylinder delivery, a gradual rise was observed in the reject rate for biometric authentication.

• Detailed analysis of the data reflected that some delivery boys were trying to by-pass the system by putting their own fingerprint for a resident’s Aadhaar (which is expected to be rejected). They would show that the authentication has failed and use manual override methods to sell the cylinder else where.

• An early analysis of this data and drill down to such distributors / delivery boys helped detect potential leakages early and corrective action was taken.



Improved Decision Making

• Some examples of decisions taken based on data analytics to make Aadhaar Authentication more robust: – Drawing up device standards, certification

guidelines and other backend configurations based on data collected from various proof on concept studies and pilots

– Authentication modalities to ensure universal coverage and near 100% accuracy



Example 3: Drawing up device standards and other authentication guidelines

• Before launching biometric authentication services, UIDAI undertook extensive field studies (PoCs) and captured extensive data to decide on appropriate device standards and backend set up.

• Based on this data, UIDAI took decisions on matters such as device standards, two-finger authentication support etc.

Device Area

(pixel) Area (mm)

FAP Classification

MINEX Compliance

FRR Single Finger

FRR Two Fingers

1 320 X 480 16 x 24 FAP 20 Yes 1.84% 0.63% 2 320 X 480 16 x 24 FAP 20 No 2.14% 1.03% 3 320 X 480 16 x 24 FAP 20 Yes 2.23% 0.70% … 8 320 X 480 16 x 24 FAP 20 Yes 3.48% 1.06% 9 352 X 544 18 x 28 FAP 20 Yes 4.01% 0.57%

10 256 X 400 14 x 22 FAP 10 Yes 4.57% 1.24% … 19 256 X 324 13 X 16 FAP 10 No 7.84% 3.38% … 25 280 X 352 14 x 17 FAP 10 Yes 18.97% 9.65% 26 280 X 352 14 x 17 FAP 10 Yes 22.81% 8.97%



To conclude…

• The Aadhaar number is a form of empowerment to those who had no proof of formal identity

• Empowerment is achieved by providing access, choice, empowerment and convenience

• Government spends large amounts on social welfare programmes 49



• Obligation on State to have the capacity to ensure effective implementation as well as reduce leakage and corruption. The expenditure should reach the intended beneficiary

• The Aadhaar project is one of the means by which efficient delivery of service and inclusion with access can be enhanced.

• Extensive use of data analytics tools to improve monitoring of implementation 50



The impact…

Digital Identity

Local Language Content

Credit Registries

Digital / Online

Payment

Mobile Commerce

Insurance, banking

Govt. Services

Social Networks

Aadhaar identity platform and Aadhaar enabled applications

can help a billion people to participate

in digital economy and avail services tailored to them!



Thank You

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