Aadhaar to boost e-commerce: UIDAI

To build an "Aadhaar verified" trust model in online world

GN Bureau | November 9, 2012



The application of unique identification number, Aadhaar, is not just limited to cleaning the public service delivery system and preventing fraud and fixing leakages. It could install "trust" and authenticate an individual as "real person" in cyber space too.

According to a white paper yet to be formally released by the unique identification authority of India (UIDAI), Aadhaar may "spur growth of existing online businesses or create new online opportunities which critically depend upon the need to authenticate real identity of the individual". The country has close to 10 million online shoppers and is growing at an estimated 30 percent compound annual growth rate vis-a-vis a global growth rate of 8-10 percent, the white paper, titled 'Aadhaar Impact on Public Service Delivery' notes.

"As it is seen today, depending purely on virtual identities create a challenge for certain online businesses where ascertaining the real identity of the user is very important for building customer confidence and business growth," the white paper says.

The report says that  'Aadhaar verified' seller and buyer accounts can "add trust in the market place" and result in accelerating growth. It also proposes that Aadhaar could be leveraged by the social networking, micro-blogging sites and other portals to verify individual's identity, as "currently there is no mechanism to verify the real identity other than manual verification which is not scalable".

The online verifiable identity could also come handy for employers during online recruitment. Using Aadhaar authentication to verify user name, address, age and mobile as given in the candidate profile can be of great value, says the authority.  

Aadhhar will also make it easy for the government to deliver services through mobile phones. "Aadhaar provides a common authentication system making it easier for government and residents to interact over mobiles or the internet."

The paper also sheds light on four key Aadhaar applications. Firstly, the unique identification number can help in verifying KYC (know your customer) and cleaning up the database.  Secondly, it can help boos financial inclusion and inter-banking transactions. Thirdly, it can help authorities in monitoring the attendance of government workers, doctors, teachers, fair price shop owners, among others. Fourthly, it can facilitate linking of databases for example, medical records, customised credit rates and insurance premiums.

The draft report states that Aadhaar platform is expected to become the country's "central identity management system". The mass adoption of Aadhaar and Aadhaar enabled bank account along with mobile will empower the residents and will facilitate direct government to resident interaction in a transparent manner, the report concludes.

Comments

 

Other News

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

The Sardar biography that throws light on our times

Patel: A Life By Rajmohan Gandhi Aleph Books, 568 pages, Rs 1,199   There are many biographi

Climate change, El Niño rewrite Indian monsoon

The month of July exceeded its rainfall target despite forecasts of a below-normal month under a strengthening El Niño. The reason could be that climate change is amplifying monsoon complexity: West Pacific warming, Western Disturbances and evolving ocean conditions increasingly interact with El Ni&

Mumbai has just 1.28 sq.m. of open space per person: Study

Mumbai`s public space crisis is as much about mismanagement as it is about scarcity, and offers a governance roadmap that can be implemented without new legislation, according to a new report by the Urban Design Research Institute (UDRI) and the NGO Alliance for Governance and Renewal (NAGAR).  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter