After Demonetisation the Centre has been trying to promote and push the digital economy to the people. They have been trying to introduce this into the rural areas to help the under privileged classes and uneducated to use the Aadhaar Pay which will enable financial transactions with a fingerprint.
This payment method is a merchant version of Aadhaar enabled payment system (AEPS) which is launched as an alternative to the card and online transactions which require a PIN and passwords. It helps merchants to collect payment from the customer by taking their Aadhaar number, the bank that has the registered account and also the fingerprint of the customer. The CEO of UIDAI-Unique Identification Authority of India, A.B. Pandey said that the Aadhaar Pay will be available on all the android-based phones with an attached finger biometric device.
Pandey said, “This ensures digital transactions which are cardless, (and) PINless. There is no need of smartphone for the customers.” To increase the use of this payment, the government has asked each bank and every branch to enable at least 30-40 merchants who will use this. As of now five banks, IDFC bank, IndusInd Bank, Andhra Bank, SBI and Syndicate Bank have the access to Aadhaar Pay and several other banks will be enabled to use this payment live in coming days.
While some have expressed doubts over the misuse of the Aadhaar Pay system, the government has assured that the fingerprints cannot be copied as they are encrypted even if the merchants try to misuse, he will be caught immediately as the location of each merchant will be noted by the banks.
It is expected to be launched in over three thousand fair price shops in the state for starters and increase in the coming days.
