A network of a million interoperable microATMs to be operated by business correspondents should be set up across the country to ensure that the benefits of various social sector schemes reach the intended beneficiaries.
This has been suggested in the final report of the Task Force on Aadhaar enabled Unified Payment Infrastructure. Mr Nandan Nilekani, Chairman, UIDAI, submitted the final report to the Union Finance Minister, Mr Pranab Mukherjee, here today.
The Aadhaar enabled e-payment system would help not only in ensuring the timely payments directly to the intended beneficiaries but would also help reduce the time taken, transaction costs and the leakages among others, Mr Mukherjee said after receiving the final report.
In order set up the network of million microATMs, the task force has recommended that a last mile transaction fee of 3.14 per cent with a cap of Rs 20 per transaction be paid by Government to banks for Government payments. The microATMs can be used for balance query, deposits, withdrawals and remittances.
In order to reduce the use of cash in the economy, the task force has also recommended that Government and Government-owned institutions accept electronic payments at all locations where they collect payments from citizens, without any additional surcharge.
Over a period of time, all payments of Government over the sum of Rs 1,000 should be made or received electronically, the task force report has suggested.
Mr Nilekani made a presentation highlighting the various recommendations made by the task force in its final report. He said that the beneficiaries of all social safety net programmes (MGNREGS, SSP, IAY) and recipients of direct subsidy transfer payments (LPG, Kerosene and Fertilisers) can greatly benefit by receiving their payments electronically, directly into accounts of their choice at their banks or post offices.
In the final report, the task force has suggested that India Post should accept Aadhaar as KYC for post office savings bank accounts and money orders.
India Post should look at deployment of microATMs in every post office. India Post should join interoperability networks and service customers of other banks, and allow own customers to use ATMs, microATMs installed by other banks.
proof of identity
The task force has also suggested that the Reserve Bank of India may consider recognising the Aadhaar letter as proof of identity and proof of address for money transfer. The central bank should notify guidelines for interoperability of business correspondents.
The RBI should publish a policy in conjunction with the Government to formulate a plan and set targets for reducing the usage of cash in the Indian economy.
For banks, the task force has suggested that at least one microATM be deployed in every bank branch. Banks have been asked to deploy a network of one million business correspondents.
Today's meeting was attended among others by the Union Agriculture Minister, Mr Sharad Pawar; the Rural Development Minister, Mr Jairam Ramesh; the Consumer Affairs Minister of State (independent charge), Mr K.V. Thomas; and the Minister of State for Chemicals and Fertilisers, Mr Srikant Jena.
krsrivats@thehindu.co.in