Task Force on Aadhaar-Enabled Unified Payment Infrastructure

Task Force on Aadhaar-Enabled Unified Payment Infrastructure has submitted its report. The panel has recommended promoting usage of electronic payments across the board in order to bring strategic transformation of governance. The Task Force was constituted in September 2011 to recommend, inter alia, detailed solution architecture for direct transfer of subsidy through a payments bridge wherein funds can be transferred into any Aadhaar-enabled bank account on the basis of the Aadhaar number.

The other recommendations are as follows:

  • To set up a network of 10,00,000 interoperable microATMs operated by business correspondents across the country for people to access their accounts at their own convenience.
  • A last mile transaction fee of 3.14 per cent with a cap of Rs 20 per transaction be paid by government to banks for government payments. This wil lead to quick establishments and a positive network externalities such as reduction in leakages and achieving financial inclusion.
  • Beneficiaries of all social safety net programmes such as MGNREGS, SSP, JSY, IAY, and scholarships and recipients of direct subsidy transfer payments (LPG, fertilisers, and kerosene) can greatly benefit by receiving their payments electronically, directly into accounts of their choice at either banks or post offices.
  • Frontline development workers (school teachers, Anganwadi workers, and ASHA workers), who often do not receive their salaries on time, can also receive their salaries by direct deposit into their accounts at banks and post offices.
  • In order to reduce the use of cash in the economy, the Task Force also recommended that the government and government-owned institutions accept electronic payments at all locations where they collect payments from citizens, without any additional surcharge.
  • Over a period of time, all payments of government over the sum of Rs 1,000 should be made or received electronically.
  • Transacting all government business using electronic payments will help reduce graft, and bring about greater transparency and accountability. This reform will require a systematic platform-based approach to payments.