What Are The Uses And Benefits Of An Aadhaar Card?

An Aadhaar card is a biometric document that serves as proof of identity and address in India. It contains a unique 12-digit universal identification number used to store individuals’ personal details in a government database. 

The Aadhaar card is becoming necessary for every individual as it is required for public welfare schemes and citizen services. It offers a flexible method of authentication as one’s identity can be verified via electronic and offline means. In addition, people no longer have to carry several documents as it is a universal document.  

So what are the uses and benefits of the Aadhaar card?

Read along to find out.

What Services Require You to Provide Aadhaar?

Opening bank accounts

There is no need to carry multiple proofs of identity to open a bank account. The Aadhaar card serves as proof of identity and address for both banks and financial institutions when availing any service. 

Filing income tax returns

To file income tax returns, you must link your PAN card with your Aadhaar number. Then, you can upload your ITR (Income Tax Returns) forms and verify them via an OTP (One Time Password) that you will receive on your registered mobile number. 

Applying for a passport

Procuring a passport used to be a time-consuming process before the introduction of the Aadhaar card. Nowadays, you can apply for a passport online by attaching your Aadhaar card as ID and residence proof. It will take only 10 days for the processing of your application. 

For using DigiLocker

The Government of India (GOI) has introduced the DigiLocker that allows everyone to store their personal documents on their official servers. You can sign up for this facility by linking your 12-digit Aadhaar number. 

Digital Life Certificate

The Ministry of Electronics and IT introduced the Aadhaar linked Digital Life Certificate to make life easier for pensioners. Now, they no longer have to be physically present at Pension Disbursing Agencies to renew their life certificates. 

Stock markets

SEBI (Securities and Exchange Board of India) has directed stock exchanges, central depositories, stock market service providers and mutual fund distributors to register with UIDAI. This allows them to accept the Aadhaar card for verification purposes.

Also Read – https://navi.com/blog/change-or-update-aadhaar-card-details/ 

Government Subsidies and Benefits Requiring Aadhaar

The Central Government and State Governments provide several social welfare schemes and programs through the Aadhaar card. This allows them to streamline their delivery mechanism, making sure that beneficiaries do not have to provide multiple documents to prove their identity. 

You can use your Aadhaar card to avail the following programs:

Food and nutrition

Public Distribution System, Mid Day Meals, Integrated Child Development Scheme, Food Security. 

Education

Sarva Shiksha Abhiyan (SSA)

Employment

Indira Awaaz Yojana, Swarnajayanti Gram Swarozgar Yojana, Prime Minister’s Employment Generation Program

Healthcare

Janashree Bima Yojana, Aam Aadmi Bima Yojana, Rashtriya Swasthya Bima Yojana

Social Security

Indira Gandhi National Old Age Pension Scheme, Janani Suraksha Yojana, Development of Primitive Vulnerable Tribal Groups

Benefits for the Government and Service Agencies

The Aadhaar program aims to provide a universally accepted identity to every Indian. Aadhaar authentication allows the government to remove duplicate records under many schemes, making their database more accurate.

This platform provides accurate and transparent information to the government and service agencies. With more data on service delivery mechanisms, the government and service providers can improve distribution systems and utilise their funds and workforce more efficiently.

As all social welfare programs are provided through UIDAI’s verification system, data leakages have been reduced. This has also ensured that the programs reach the intended beneficiaries only. For example, it makes sure that subsidies of PDS (Public Distribution System) reach beneficiaries.

Benefits of Aadhaar for Residents

Universally acceptable

The Aadhaar card is a multi-purpose card that you can use as proof of identity, address and age. All government institutions accept this card for all services and programs without requiring other documents.

One Aadhaar number

Aadhaar is a unique number, and no resident can have duplicates of this as it is linked to their biometric information. This has eliminated many identities from government databases. 

Includes those without existing ID proof

Many poor and marginalised residents of the country do not have proper identity documents. They can apply for an Aadhaar card to get benefits from government schemes. 

Portability

Aadhaar is a universal number, so services/agencies can contact the UIDAI database anywhere for authentication. Moreover, the e-Aadhaar facility allows you to have a soft copy of it at all times for easy verification. 

Self-service facility

People can use Aadhaar for authentication, access up-to-date information about their entitlements and get related services on demand. Its standard security features involving two-factor authentication assure security for mobile banking and payments.

Also Read – https://navi.com/blog/documents-for-aadhar-card-enrollment/ 

Final Word

Now that you know the advantages of having an Aadhaar card make sure to apply for one to enjoy the various benefits. Anyone, regardless of age, gender, religion or caste, can apply for this document without paying anything. 

Frequently Asked Questions

Do I need to have an Aadhaar card when filing taxes?

Yes, Section 139AA of the Income Tax Act  makes it mandatory for taxpayers to have an Aadhaar card for this purpose. Under this, taxpayers need to provide their Aadhaar number or Enrolment ID of their Aadhaar application form to file their income tax return. 

Does UIDAI track my activities or share them with third parties?

No, UIDAI only has minimal information that you provide at the time of enrolment. Moreover, Section 32(3) of the Aadhaar Act 2016 prohibits the agency from controlling, collecting or maintaining information for any reason other than its official purposes.

 Why do I need to link my Aadhaar number with an LPG connection?

If you want to receive an LPG subsidy, all you have to do is provide your Aadhaar Unique Identification Number (UIN) to link your Aadhaar card to your 17 digit LPG ID. After you do this, the subsidy amount will be directly credited to your bank account. 

 Is it mandatory to provide your Aadhaar number to receive essential services?

No, as per Section 7 of the Aadhaar Act 2016, a person cannot be denied essential services like ration or pension if they do not have an Aadhaar card. In that case, the department needs to verify the identity through alternate means of identification.

  What are the benefits of having an Aadhaar card for retirees?

GOI allows retirees to withdraw, settle or transfer provident fund claims online using Aadhaar. Moreover, if a pensioner links their Aadhaar card with the pension account, he/she can get the provident fund directly disbursed to it.

Before you go… 

• Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Install the Navi app now!
• Or, maybe you’re looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to Rs. 5 crore. Install the Navi app now and get your instant in-principle approval right away! Interest rates starting at 6.40% p.a.
• How about an affordable health insurance policy 👨‍⚕️ starting at a monthly premium of just Rs. 241? Install the Navi app and get your policy under 2 minutes
• Instead, want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research. Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.