Unique Identification system Introduing in MUMBAI
To upgrade the Mumbai Mega city Mumbai city corporation is going to introduce Unique Identification MUMBAI: All legitimate residents of Mumbai, including those from outside the state as well as country, would be eligible to get a number under the central governments Scheme, according to Brihanmumbai Municipal Corporation (BMC) chief Swadheen Kshatriya.
He said the scheme would not discriminate between insiders and outsiders.
Kshatriya said on Friday that BMC would begin collecting information for the database from May 1.
However, while all legal residents including Bangladeshis would be eligible for the UID card, the card would include information about a persons nationality and even domicile so that the UID cannot be misused to get benefits the person is not entitled to.
The BMC chief is in charge of maintaining and upgrading the database for Mumbai on behalf of the Unique Identification Authority of India (UIDAI).
Very soon, Manmohan Singh asked him to spearhead the National Unique Identification Card (UID) project.
To give a background for those who missed this news (most unlikely though), this project aims to provide a unique indentification card to every citizen of India. This card will contain details like the name, sex, address, marital status, photo, identification mark and finger biometrics by 2011. The unique identification number will be based on a sophisticated application called SCOSTA, a secured electronic device thats used for keeping data & other info in a way that only authorized persons can view it. It can be used as a voter I-card to proof for opening a bank account and among other things, is supposed to ensure that any lacuna in the UPA flagship schemes (NREGS, Sarva Shiksha Abhiyaan, Food Security Act- see the previous blog by Jay, etc) is removed so that the benefits do not reach those they are not meant for.
While cautiously acknowledging the grave and not-to-be-underestimated challenges in the implementation of this proposal, I am still trying to figure out why the microfinance sector seems to be so apathetic towards this initiative.
Just assuming for a minute that this excellent and ear-pleasing government proposal does manage to show some results for a change, we have reason to celebrate, dont we?
Provision under Rule 9 of the Prevention of Money-laundering Rules, 2005 is as follows:
Verification of the records of the identity of clients. – (1) Every banking company, financial institution and intermediary, as the case may be, shall, at the time of opening an account or executing any transaction with it, verify and maintain the record of identity and current address or addresses including permanent address or addresses of the client, the nature of business of the client and his financial status;
Verification of the records of the identity of clients. – (1) Every banking company, financial institution and intermediary, as the case may be, shall, at the time of opening an account or executing any transaction with it, verify and maintain the record of identity and current address or addresses including permanent address or addresses of the client, the nature of business of the client and his financial status;
Minakshi Ramji aptly points out in her study on Financial Inclusion in Gulbarga that Poor individuals, especially women and other marginalized groups, rarely have legal proof of identity, address or employment. This renders obtaining formal credit even more onerous.
So
how do these people get loans? So the UID proposal is good news
right??
Here are the cynical comments Id expect and agree with and on why we should not overestimate it: (you may add)
* Enrolment and authentication will be a mammoth task, as pointed out by Mr. Nilekani himself. A population of * 1.1 billion, a significant portion of India-2 (in Kishore Biyanis terminology) in remote areas
* Updating the data stored on the card and the database- another huge challenge.
* Past similar endaevours have not been entirely (ahem) successful.
* Voter ID cards, PAN cards, SMART cards how many more cards do we stuff in our wallet?
* Updating the data stored on the card and the database- another huge challenge.
* Past similar endaevours have not been entirely (ahem) successful.
* Voter ID cards, PAN cards, SMART cards how many more cards do we stuff in our wallet?
At the same time, heres why we should not underestimate Mr. Nilekani!
* He is powered by intellect, driven by values (Infosys tagline)
* project manager, CEO and vice chairman of Infosys for the past 27 years
* a proven outstanding programmer and systems analyst
* author of the bestselling book Imagining India after reading which we can imagine his ethics
* project manager, CEO and vice chairman of Infosys for the past 27 years
* a proven outstanding programmer and systems analyst
* author of the bestselling book Imagining India after reading which we can imagine his ethics
Youll say that one man alone cannot pull it off. Well, obviously! But hes been given complete autonomy to pick his own team from the private sector and if hes given carte blanche to execute his plans and gets decent level of cooperation from the government, he probably even can!
Judging just from the fact that Manmohan Singh picked a corporate maestro to head this project rather than a sycophant politician from the cabinet, he looks like hes looking for a clean, corruption-free delivery and would most likely be in the mood to give him his space too and make efforts to pave the way for him rather than pose the usual bureaucratic hurdles.
Personally, Ive decided to have patience, settle at a mildly optimistic attitude and hope that for once, the execution of this project will be nearly (at least somewhat) as good as it sounds.