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
- Aadhaar ties up with Visa, five banks launch Aadhar-linked Saral Money bank account (nextbigwhat.com)
- 2012 in Review: Biometric ID Systems Grew Internationally … And So Did Concerns About Privacy (activistpost.com)
- Direct benefits transfer: Why direct transfer may not put money in people’s pockets (thehindu.com)