Identity Project's List: Livemint

"UIDAI chairman Nandan Nilekani. (File Photo)

The surprising thing about the ongoing controversy surrounding the Unique Identification Authority of India (UIDAI, which turned one on Thursday, is not that there is one, but that it has taken as long as a year for it to gather enough momentum to make it to the front pages of newspapers and prime time news on TV.

By far the most legitimate concern about the Unique ID project, even if it is one that is relevant largely to the urban middle class that doesn’t gain much by being on the grid, is the one that deals with privacy and security. Without the right safeguards, including progressive legislation, it is frightening to think of what an absolute state can do with information in the UIDAI database. "

"New Delhi: Montek Singh Ahluwalia, deputy chairman of the Planning Commission, has come out clearly in favour of complete autonomy for the Unique Identification Authority of India (UIDAI), which is spearheading the government’s ambitious Aadhaar project.

His comment was aimed at ending the controversy that broke out after a newspaper report on a note from the Planning Commission to the finance ministry appeared to indicate that the Planning Commission wanted more stringent controls on the dispenser of national identity numbers. UIDAI, which marked its first anniversary on Thursday, is currently attached to the Planning Commission."

"Is a unique ID number or Aadhaar number issued by the Unique Identification Authority of India (UIDAI) enough to satisfy the so-called know-your-customer (KYC) norms that banks have to ensure every account they open meets?

The finance ministry may have amended the Prevention of Money Laundering Rules, 2005, to notify Aadhaar as adequate to meet KYC norms for opening bank accounts, putting it alongside the passport, driving licence, permanent account number (PAN) card, and the voter’s identity card, but banks are still confused.

That’s because the finance ministry notice came in December, and in January, the Reserve Bank of India (RBI) said all accounts opened exclusively with the use of an Aadhaar number would be treated as so-called small or no-frills accounts. "

"The unique identification (UID) project’s authentication service, which will allow government departments, banks, telecom companies and other service providers to check the identity of a service seeker, will be tested from September.

The Unique Identification Authority of India (UIDAI), the nodal agency for the Aadhaar project, will begin a pilot project with banks and telecom firms for testing the authentication service, UIDAI chairman Nandan Nilekani​ said recently.

The Aadhaar project aims to provide every resident of India a UID based on their biometric data. Once it is completed, a service provider, using the UID authentication service, will be able to cross-check from a central database if individuals applying for their services are who they claim to be, on the basis of these UIDs."

"Mumbai: Rivals Hindustan Unilever Ltd (HUL), India’s largest consumer packaged goods company, and Marico Ltd are joining hands for a shared cause—the goods and services tax (GST) regime.

They are busy making joint presentations to create a common set of industry practices to embrace the new indirect-tax system."

"Prospective Indian pilots and aircraft engineers will need to have Aadhaar or unique identification (UID) numbers to be issued licences from January, under a new rule of the Directorate General of Civil Aviation, or DGCA.

Aadhaar aims to give unique digital identities to every Indian by capturing their demographic data and biometrics.

DGCA, on a drive against fake pilot licences, wants all applicants for pilot or aircraft maintenance engineer (AME) licences to provide Aadhaar numbers in their applications.

“All applications for the issue/renewal of AME/pilot licence including applications for examinations relating to these licences shall be accompanied with an ‘Aadhaar Number UID Card’ with effect from 1st January 2012,” director general of civil aviation Bharat Bhushan said in a notification issued this month."

"New Delhi: Even though the Centre and states are yet to reach a consensus on certain aspects of the proposed goods and services tax (GST), the groundwork for the technology infrastructure has started. As a part of this exercise, a pilot project has been launched in 11 states. Union finance minister Pranab Mukherjee on Wednesday said he expects feedback from the information technology (IT) pilot projects by the beginning of next month.

The idea behind the pilot is to make sure that the states’ technology infrastructure is GST complaint so that whenever the roll-out takes place, they are prepared with the back-end building, which can be a painstaking task stretching over many months.

“A strong IT backbone will be the key to successful GST implementation,” said Pratik Jain, executive director of consultancy firm KPMG.

The implementation of GST, one of the most significant tax changes that India has ever sought to make and which will turn the country into one common market, has been held up over various objections by the states.

“Currently, there is a stalemate with respect to certain policy issues on GST. Unless these are removed, the Act will not happen. However, it is important to test and ready the IT infrastructure, which is a time-consuming process,” said a person familiar with the developments. He did not want to be named as the details of the pilot project have not been made public."

"Life may became a bit easier for your domestic staff. According to a recent notification by the Reserve Bank of India (RBI), job cards issued by the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) duly signed by an officer of the state government and letters issued by the Unique Identification Authority of India containing the name, address and Aadhaar number of the applicant can also be used as officially valid documents to open a bank account. However, accounts opened only on the basis of either or both these, will be treated as small accounts.

What are small accounts?

A small account is nothing but a savings account that can be opened with any bank. In order to open such an account, all you need is a self-attested copy of your passport size photograph, apart from the NREGA card or UID number. However, the designated officer at the bank who processes the opening of your account has to certify under his signature that the signature or thumb impression of the account holder was affixed in his presence. Though the documentation is relaxed, the account comes with many limitations.

The limitations

The documents will support the account for 12 months only. After that, you will have to produce the documents that are normally considered valid proofs of identity and address to open a savings account. The small account can be renewed for another 12 months if you provide evidence to the bank that you have applied for the documents. The bank will review the status of the account after 24 months. If you are unable to produce the required documents even 24 months down the line, then the banks will most likely close your account. "

"mid looming storage problems, the Centre today asked state governments like Punjab and Andhra Pradesh to facilitate and expedite the creation of extra storage capacity for 15.2 million tonnes of foodgrains.

Currently, the Centre has a storage capacity of 62.23 million tonnes of foodgrains, though stocks in its godowns are at a peak level of 65 million tonnes. As a result, a considerable quantum of foodgrains is being stored in the open."

"The empowered group of ministers (eGoM) recently decided on two important steps seen crucial for management of foodgrains. The first was the finalization of the National Food Security Act (NFSA) and, secondly, extending the term of the Nandan Nilekani committee to explore the possibility of introducing cash transfers for delivering food subsidy directly to the poor. Another linked decision was to allow exports of wheat and rice to international markets.

The decision making has been disappointing. The eGoM watered down the proposal of the National Advisory Council on the NFSA. The ministers proposed a food law that would cover only 68% of the population, close to 80 million fewer than what the NAC wanted. The excuse? Limited availability of foodgrains. Interestingly, the group agreed to allow exports of foodgrains as the country has a surplus with little storage space. With a record output of 241 million tonnes (mt) this year, we have enough foodgrains not only to feed the domestic population, but also subsidize international consumers through exports. Of course, only one of these can be true. Either we have shortage of foodgrains that justifies pruning down the NAC proposal or we have so much surplus that export is the only way out. "

"Differences between the database of the central and state governments related to information on traders and varying registration formats are among hurdles that a Nandan Nilekani-led panel faces as it seeks to set up a common technology network that is critical for the implementation of the proposed goods and services tax (GST).

“The state database of dealers and their PAN (permanent account number) numbers is not matching with that of the Centre,” said a finance ministry official, who did not want to be named, after reviewing feedback on the IT pilot project from 11 states. “While in the case of some states, the discrepancy is minor, in other cases, for example, Delhi, there are major mismatches.” Most of the discrepancies are because of faulty entry of data, he said. "