UID: Authentication to fetch Rs 288 cr annually

December 29, 2009 at 8:14 pm | Posted in Arguments For, Nandan Nilekani, News Articles on ID cards, Survey of Arguments, The Market | Comments Off on UID: Authentication to fetch Rs 288 cr annually

http://www.business-standard.com/india/news/uid-authentication-to-fetch-rs-288-cr-annually/376806/

UID: Authentication to fetch Rs 288 cr annually
BS Reporter / New Delhi November 18, 2009, 0:52 IST

The Nandan Nilekani-headed Unique Identification Authority of India (UIDAI) pegs its annual revenue potential through both address verification and biometrics confirmation at Rs 288.15 crore.

Nandan NilekaniIn a draft document of the authority, the UIDAI has identified three transaction types. The basic ID confirmation will be free, where potential user agencies could be, for instance, the airlines which do passenger check-ins.

The second type of transaction is that of ‘address verification’, which will cost Rs 5 and can be levied by banks when users open accounts. The third one comprises ‘biometrics confirmation, for which Rs 10 can be charged. Its potential user agencies can be credit card companies, states the draft paper.

“The revenue estimates are based on the current expenditure of various agencies on Know Your Resident (KYR) processes, which would be replaced by the authority’s authentication services. It also takes into account the expected growth in demand for mobile connections, bank accounts, etc,” the draft paper states.

For basic identity confirmation, which is free, the authenticator will provide the UID number, name and one other parameter, such as the date of birth of the person, after which a central database will confirm the identity with either a ‘Yes’ or ‘No’ response.

In address verification, the UIDAI will offer the UID, name and address to the Central ID Data Repository, which will confirm the address. Hence, the agency that requires the address proof will not have to do a physical address verification.

For biometrics confirmation, the agency that needs a person’s biometrics can send the scanned photograph or fingerprint (based on the security level required) together with other demographic details to confirm the identity of the person.

“The authority will charge a fee for its authentication services, which will offset its long-term costs. Registrars and service providers will also be able to charge for the cards they issue residents with the UID number. Such pricing will be within UIDAI guidelines,” the draft states.

600 million to be covered in 4 yrs
The UIDAI will start issuing UIDs in 12-18 months and the authority plans to cover 600 million people within four years from the start of the project and India will be the first country to implement a biometric-based unique ID system for its residents on such a large scale.

Enrolment for the UID number is expected to reach a critical mass of around 200 million residents in two-three years.

Moreover, the UIDAI will employ a GIS internet-based visual reporting system to track enrolment trends and patterns across India.

Once the UID number is assigned, the authority will forward the resident a letter which contains his/her registered demographic and biometric details and a tearaway portion, which has the UID number, name, photograph and a 2D barcode of the fingerprint minutiae digest. If there are any mistakes in the demographic details, the resident can contact the relevant registrar/enrolling agency in 15 days.

In addition to the enrollers, the UIDAI will also partner with the Registrar General of India (RGI) who will prepare the National Population Register through the Census 2011 to reach and enroll as many residents as possible.

Residents can also update their information with the UIDAI. The UID number is a lifetime number, but the biometric information contained in the central database will have to be regularly updated. Children may have to update their biometric information every five years, while adults update their information every 10 years.

Need to link UID with actual service delivery
However, implementers of the project have also highlighted its limitations.

“While the UID can provide the strongest form of pre-verification and identity authentication, it cannot ensure that targeted benefit programmes reach intended beneficiaries. The pro-poor impact of the UID, consequently, will not gain traction unless there is a mechanism to link the UID process with actual service delivery,” the draft notes.