How Aadhaar Works

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How Aadhaar Works 


Aadhaar is a unique identity number that is assigned to every Indian resident. It is issued by the Unique Identification Authority of India (UIDAI) on behalf of the Government of India. Aadhaar is based on demographic and biometric information, including name, date of birth, gender, address, fingerprints, and iris scans.

Aadhaar works by using a sophisticated algorithm to generate a unique 12-digit number for each individual. This number is linked to the individual's demographic and biometric information. Aadhaar can be used to verify a person's identity and authenticate transactions.

Aadhaar can be used in a variety of ways, including:

  • Accessing government services: Aadhaar can be used to access a wide range of government services, such as passport applications, income tax filing, and social security benefits.

  • Opening bank accounts: Aadhaar can be used to open bank accounts and avail other financial services.

  • Filing taxes: Aadhaar can be used to file taxes online.

  • Buying SIM cards: Aadhaar is required to purchase SIM cards for mobile phones in India.

  • Authenticating online transactions: Aadhaar can be used to authenticate online transactions, such as payments and purchases.

To use Aadhaar, an individual must first enroll for it. Enrollment is a simple process that can be done at any Aadhaar enrollment center. Once enrolled, the individual will receive a 12-digit Aadhaar number and an Aadhaar card.

To verify a person's Aadhaar identity, a requesting entity (such as a bank or government agency) can send an authentication request to the UIDAI. The UIDAI will then verify the person's identity by comparing the demographic and biometric information in the authentication request to the information stored in the Aadhaar database.

Aadhaar is a secure and reliable way to verify identity. It is also a convenient way to access government services and financial services.

Here are some specific examples of how Aadhaar is being used in India:

  • The Direct Benefit Transfer (DBT) scheme: Aadhaar is used to transfer government benefits directly to the bank accounts of beneficiaries. This has helped to reduce corruption and ensure that benefits reach the intended recipients.

  • The Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme: Aadhaar is used to open bank accounts for the poor and underbanked. This has helped to bring more people into the formal financial system.

  • The Goods and Services Tax (GST): Aadhaar is used to register businesses for GST and to file GST returns. This has helped to simplify the tax system and reduce compliance costs for businesses.

Aadhaar is still a relatively new program, but it is already having a significant impact on the lives of millions of Indians. It is helping to make India a more inclusive and prosperous society.