Popularly known as Aadhar card, the Unique Identity Number initiative started by the Government of India under the supervision of Sir Nandan Nilenkeni, has a great sociological and commercial advantage. Although to explain in lay man terms it is easier to say that the card is something that replaces the traditional ration card but as the name suggests, the card provides a number to each individual family that will serve as an important identity every where in the country. More so the card will be helpful for people to procure loans since it has all details including peopleâ€™s bio-metric information.
Focusing on the kind of social impact it shall create include in the savings front. Since opening a bank account would now be easier since the card gives all the relevant information requiring not much proof, there would be an increase in savings.
Authorities even say that this will result in more tax receipts and less defaults. As a result of the program 125 million people will be able to join the banking network.
One more important advantage of the scheme is that the subsidy management system will be linked to UID which will make sure that the subsidy reach the target group and thus help save the country $ 110 billion of subsidy leakage over next five years. The scheme will also provide $ 20 billion worth of commercial and IT opportunity.