Aadhar card was introduced by finance ministry years ago with noble motives, however, it could not prove its relevance to the extent it was expected and thus it has lost its purpose. Now the Finance Ministry has come up with RuPay, which is ATM enabled and will replace Aadhaar in all the welfare scheme payments.
At the same time, Aadhaar will still continue to be used as a document for processes like opening account and work as a proof for eliminating duplicities. Moreover, Aadhar would no more be used for last-mile authentications and for seeding in banks and government databases.
What is RuPay?
Developed by National Payments Corporation of Indian (NPCI), RuPay was launched by Finance Ministry in May 2014 to introduce a card based payment system across the country for all sections of the society. The word draws its coinage from ‘Rupee’ and ‘Payment’.
The intention behind its introduction is to reduce dependence on cheque and cash for modes of settlement and offer products that are dependent on specific requirements.
What are the benefits RuPay would offer?
The benefits of RuPay are numerous and to a level where its application is extended to the diverse needs of consumers, merchants as well as banks. It provides a flexible platform and high level of acceptance, thus making it an obvious choice by users. Here are some remarkable benefits of RuPay:
Å It lowers down the domestic transaction processing cost and would thus encourage more people for usage of cards in transactions.
Å It would ensure development of customized services and products
Å RuPay would be a safe and secure method of transaction as the transactions will reside in the country itself.
Å Most importantly, it would penetrate unexplored consumer markets like rural areas, which have been so far away from such centralized and biometric transaction system. The finance ministry plans to make RuPay more feasible by pricing it right.
Will RuPay be able to replace Aadhaar cards?
Not exactly, but yes, RuPay would certainly limit the already limited role of Aadhaar and both would be relevant for different purposes now. While Aadhaar will continue to be used for opening accounts and limit ghost and duplicate beneficiaries, RuPay would power the ATM cards, which a consumer can use at multiple platforms.
The introduction of RuPay by Finance Ministry came from the observation that Aadhaar could not turn out to be a one stop solution for transaction records and thus instead of making changes within the domains of Aadhaar cards, government implemented a separate entity altogether.
Many financial analysts across the country are welcoming RuPay and agree that limiting bank accounts with Aadhar is a great idea to avoid duplicates and ghosts from beneficiary list. The replacement comes as a welcoming step for making financial transactions authentication more transparent.
The challenge ahead is still the same, until we see things turning out as expected by the ministry. RuPay’s ability to penetrate Indian rural areas and touch lives of daily laborers would decide its success of failure.