One of the key factors to inclusive growth is financial inclusion for all. Financial inclusion refers to universal access to a wide range of banking solutions and financial services in a fair, predictable and transparent manner at affordable costs. The poor tend to be ignored because the transaction costs in serving them are high. Initiatives that reduce these costs will allow service providers to begin thinking of financial services for...

India moved a step closer to implementing cash transfers of direct subsidies and social welfare payments after a high-level panel presented the blueprint for effecting it through an Aadhaar-based payment gateway. Accepting the report, which details how all payments and cash transfers can be made electronically, finance minister Pranab Mukherjee indicated that it will be the key to plug leakages and ensure more targeted spending under the government’s social welfare programmes. The...

In an indication that the ruling Congress may be looking to evolve a comprehensive social security package ahead of the next general election, the Sonia Gandhi-led National Advisory Council (NAC) has started a consultative process with four central government ministries aimed at linking existing and new schemes for the huge unorganized sector. The plan, according to an NAC member, is to issue one entitlement card to every worker in the unorganized...

For a change, Mangal Bedia did not board a crammed bus today and travel 15km to withdraw his old-age pension from a bank. The 70-year-old from Dohakatu village in Ramgarh district, along with 100-odd fellow elders, became the first citizens to access old-age pension by using their Aadhaar numbers with handheld ATMs on the doorstep. The banking service reached their village, thanks to the Unique Identification Authority of India (UIDAI). Until today,...

The Nandan Nilekani-headed Unique Identification Authority of India (UIDAI) is set to replicate, at the national level, Jharkhand's success in disbursing money to people at their doorsteps. On Tuesday, the UIDAI launched its unique identification or Aadhaar-based platform to link public entitlements to Aadhaar-linked bank accounts. It would mean that governments would be able to directly deposit subsidies into the bank accounts of beneficiaries of schemes such as the Public Distribution System, old-age...