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Aadhar Smart Cards and Aadhar Pay – Know All About These Two Announcements in Union Budget 2017

Post demonetisation drive, the significance of Aadhar Card has grown manifolds and made Aadhar Card somewhat of a necessity for the citizens with various payment options and benefits being linked to it.

Aadhar Smart Cards and Aadhar Pay

This is evident in the number of registrations for Aadhar Card post demonetisation which have gone up to 7-8 lakhs a day whereas before demonetisation it remained at 5-6 Lakhs only. The Union Budget 2017 is sure to bring about even more evolutionary changes in the way Aadhar Card is used in India with the announcement of two new schemes – Aadhar Smart Cards and Aadhar Pay.

Aadhar Smart Cards and Aadhar Pay - Know All About These Two Announcements in Union Budget 2017

Aadhar Smart Cards and Aadhar Pay- Everything you need to Know about it!

In the Union Budget 2017, Aadhar Smart Cards and Aadhar Pay were introduced. Here are the complete and simplified details for the same.

What are Aadhar Smart Cards?

Aadhar Smart Cards are meant for senior citizens of India and it is a big initiative by the Government of India for the welfare of Senior Citizens. The Aadhar Smart Cards aim to:-
  • Aadhar Smart Cards will bring Senior Citizens under an official medical directory.
  • Another important objective of the Aadhar Smart Cards is to increase preventive medication.
  • The benefits of the Aadhar Smart Cards is not limited to just this, as it will enable Senior Citizens of India to earn 8 percent interest on savings through LIC.

What is Aadhar Pay?

The Aadhar Pay is complimentary to the post demonetisation wave and agenda of the government to facilitate cashless transactions in the country.

The Aadhar Pay is a cashless payment system that in the process of being setup by the Government of India in collaboration with different banks.

The Aadhar Pay system will enable people to make cashless payments – who neither hold debit card or Credit Card in their name nor do they have a mobile phone to make cashless payments for the goods and services they avail.

Aadhar Pay for cashless transactions using Aadhar payment systems

How does Aadhar Pay Work?

To conduct a Aadhar Pay transaction an individual will have to go through simple combination of two steps- firstly, a citizen will require to give in their Aadhar number and secondly, he/she will be required to give in their biometrics for example, finger print. After these two levels of information have been submitted, payment for goods and services can be completed.

For more details on how exactly the Aadhar Pay works, click here.

Till now, 14 banks have come on board with the government to facilitate the Aadhar Pay system. The scheme is aimed to bring about financial inclusion as 111 crore citizens of India have Aadhar cards whereas not many have access to plastic money or e-payment platforms. Across 49 crore bank accounts across the country are also linked to Aadhar Card numbers.

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