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LATEST NEWS UPDATES | Aadhaar leading a surge in bank accounts: Nilekani

Aadhaar leading a surge in bank accounts: Nilekani

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published Published on Dec 10, 2010   modified Modified on Dec 10, 2010

The Unique Identification Authority of India is already seeing a massive explosion for bank accounts among people enrolling for Aadhaar or the unique IDs issued by the authority, its chairman Nandan Nilekani said. Some 80% of people enrolling for the IDs want bank accounts, he said at a lecture here organised by the Indian Institute of Banking & Finance on Thursday. 

“If we are able to provide every such person with a bank account, financial access will explode in India,” Mr Nilekani said. Considering the pace of enrolments for Aadhaar, there was a very real possibility that the number of bank accounts issued in the next four years will exceed the number of accounts banks have issued since India's independence, he felt. 

“India's financial depth today is substantially lower than other Asian countries, including Thailand, Korea, China and Malaysia. I believe a pro-poor approach towards financial inclusion will trigger a growth curve similar to what we witnessed in the telecom sector,” Mr Nilekani, who co-founded one of India's second-largest software exporters, Infosys, said. 

The Aadhaar number would bring to financial inclusion the same features that drove rapid telecom expansion — geographical mobility in services , dominance of low-cost high-volume micro-transactions , negligible upfront costs, and a dense, easily accessible network of agents retailing the service. 

The Aadhaar number reduces the risk by enabling the bank to easily and instantly identify the individual's identity before they open an account or prior to a transaction. The identity can be verified through multiple ways — through biometric, through demographic information or using a PIN number.

The Economic Times, 10 December, 2010, http://economictimes.indiatimes.com/tech/software/Aadhaar-leading-a-surge-in-bank-accounts-Nilekani/articleshow/7074532.cms


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