Saral Money – Pilot launch in NCR


The race to harness the UIDAI database has begun. Rupay by NPCI was the first off the block. Now, VISA too has joined the race.

Visa in the pilot launch has partnered with five Indian Banks viz., Axis Bank, HDFC Bank, ICICI Bank, Indian Overseas Bank and the State Bank of India, launch the Saral Money.

‘Saral Money’ relies on the biometric information collected by UIDAI via its Aadhaar platform, for authentication of the bank account holders and to authorize the payments.

‘Saral Money’, was immediately launched after RBI announced that the Aadhaar Card can be accepted as a valid address proof document.  This means that the necessary preparations in the background were going on.

The main advantages of ‘Saral Money’, is that the ‘Saral Card’, will be accepted at all Visa outlets, thereby drastically increasing the chances of early success.

The pilot launch has been done in NCR, and as new technology is involved, the Pan India rollout is expected to be completed by end of 2013.

All Aadhaar Card holders will be eligible for the ‘Saral Money’. They simply have to approach the member banks to complete the formalities.

The ‘Saral Money’ account will be different from the regular saving bank accounts.

a)            This is only a virtual account.

b)            No cheque books will be issued.

c)            No cash deposits can be made at the cash counter. Cash has to be loaded at participating outlets.

d)            No interest will be paid. This is because ‘Saral Money’ will be like a Pre-paid card, with the authentication being replaced by biometrics/iris scan instead of a Password.

The present process flow of ‘Saral Money ‘, is as under: –

01)          The Aadhaar card holder approaches the Bank Branch or Banking correspondent.

02)          Instant Authentication is carried out with the UIDAI Database.

03)          A ‘Saral Money’, card is issued to the customer.

04)          The customer loads cash on to the Saral Money card.

05)          The card holder  uses Prepaid card to swipe APA / enters Aadhaar number at Micro ATM terminal

06)          The transaction is transmitted by Visa to UIDAI database for identity authentication.

07)          UIDAI database sends approval request to issuing bank via Visa network

08)          Visa returns authorization response to Micro ATM

09)          Visa sends report to acquiring bank

10)          Acquirer settles transaction

11)          Yes, steps from 5 to 10, happens in less than 10 seconds



8 thoughts on “Saral Money – Pilot launch in NCR”

  1. Minimum interest is just peanuts compared to the savings in terms of money and effort. If this saral money is accepted every nook and corner shop then i wont mind using the saral card even if i have a separate debit card issued by my bank. I will load small amount(say the expected expenses for four to seven days) of about 500-1000 and even if i loose the card nothing much is lost. There won’t be any hassle of change problem. But one thing i feel about it is that the Rs. 5 charge for every transaction is too much. If Rupay card is cheaper i will use that only.

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