Home » Investigations » Central » Cash Transfers Will Reach People If Aadhaars Do

Cash Transfers Will Reach People If Aadhaars Do

Share with your friends










Submit
Views
1160

The Congress-led UPA Government is banking on the direct benefits transfer scheme to woo voters and ensure that subsidies reach the targeted population.

 

The success of this will depend largely on Aadhaar – the 12-digit biometric, unique identity number issued by Unique Identification Authority of India (UIDAI) that will serve as a proof of identity and address anywhere in India and can be authenticated online.

 

Aadhaars are not a necessary pre-condition for benefits or cash transfers because some Government departments have already linked benefits to bank accounts. Moreover, a biometric ID may or may not be mandatory for every benefit or subsidy given to a resident.

 

IndiaSpend studied the state and district-wise penetration of Aadhaar to do some crystal gazing on where direct benefits or cash transfers might take off first and to what extent, when they do.

 

UIDAI has issued over 260 million Aadhaar numbers till date since the first number was issued on September 29, 2010.India has a population of 1.2 billion spread across 650 districts in 35 states and Union Territories across the country.

 

In terms of states, Andhra Pradesh leads the list with over 51 million enrolments followed by Maharashtra (44 million) and Kerala (20 million). And the maximum enrolments – 16.2% male and 14.3% female – have been in the 16-30 years group.

Let us look at the state-wise data on Aadhaar enrolments till now:

 

Table 1: Goa, Tripura Lead Coverage

 

State Population Aadhaar Enrolments % Coverage
Uttar Pradesh 199,581,477 10,024,267 5
Maharashtra 112,372,972 44,529,153 40
Bihar 103,804,637 2,171,525 2
West Bengal 91,347,736 9,951,603 11
Andhra Pradesh 84,665,533 51,444,301 60
Madhya Pradesh 72,597,565 16,246,419 22
Tamil Nadu 72,138,958 9,050,500 12
Rajasthan 68,621,012 12,609,390 18
Karnataka 61,130,704 17,353,191 28
Gujarat 60,383,628 7,103,262 12
Odisha 41,947,358 5,310,398 13
Kerala 33,387,677 20,659,922 62
Jharkhand 32,966,238 11,343,567 34
Assam 31,169,272 21,121 .06
Punjab 27,704,236 12,212,882 44
Chhattisgarh 25,540,196 348,016 1.4
Haryana 25,353,081 3,353,300 13
Delhi 16,753,235 12,612,232 75
J&K 12,548,926 49,973 0.4
Uttarakhand 10,116,752 1,024,361 10
Himachal Pradesh 6,856,509 4,832,489 70
Tripura 3,671,032 2,939,211 80
Meghalaya 2,964,007 951 .03
Manipur 2,721,756 606,142 22
Nagaland 1,980,602 212,179 11
Goa 1,457,723 1,181,781 81
Arunachal Pradesh 1,382,611 777 .05
Puducherry 1,244,464 956,089 76
Mizoram 1,091,014 8,496 0.77
Chandigarh 1,054,686 717,345 68
Sikkim 607,688 481,598 79
A&N Islands 379,944 159,653 42
Dadra & Nagar Haveli 342,853 29,666 9
Daman & Diu 242,911 132,160 54
Lakshadweep 64,429 45,295 70

Source: UIDAI, Census 2011

 

Now, on January 1, 2013, the central government launched the direct benefits transfer scheme in 20 districts across Andhra Pradesh, Karnataka, Delhi, Rajasthan, Madhya Pradesh and Punjab and Union Territories of Puducherry, Chandigarh and Daman and Diu.

Now, let’s see how many Aadhaars have been issued in these 20 districts?

 

Table 2: Andhra Pradesh Districts Have Over 80% Coverage

 

District State Population Aadhaar Enrolments % Coverage
Hyderabad Andhra Pradesh 4,010,238 5,071,076 126
Anantpur Andhra Pradesh 4,083,315 3,534,863 86
Chittoor Andhra Pradesh 4,170,468 3,492,425 84
East Godavari Andhra Pradesh 5,151,549 4,424,554 86
Tumkur Karnataka 2,681,449 2,335,642 87
Mysore Karnataka 2,994,744 2,604,478 87
Dharwar Karnataka 1,846,993 878,499 47
Chandigarh Chandigarh 1,054,686 716,512 68
SBS Nagar/Nawanshahar Punjab 614,362 415,661 68
North-East Delhi Delhi 2,240,749 1,399,588 62
Hoshangabad Madhya Pradesh 1,240,975 879,713 71
East Nimar (Khandwa) Madhya Pradesh 1,309,443 1,033,351 79
Harda Madhya Pradesh 570,302 414,779 73
Ajmer Rajasthan 2,584,913 696,957 27
Udaipur Rajasthan 3,067,549 705,710 23
Alwar Rajasthan 3,671,999 786,705 21
Puducherry Puducherry 946,600 857,635 90
Diu Daman & Diu 52,056 42,899 82
Daman Daman & Diu 190,855 89,525 46

Source: UIDAI

 

Andhra Pradesh leads with coverage of over 80% in all the four districts selected – Hyderabad, Anantpur, Chittoor and East Godavari. Hyderabad, in fact, has coverage of 126%. This figure could be due to a spillover of residents from neighbouring areas.

 

Karnataka presents a mixed picture: Out of three districts selected – Tumkur, Mysore and Dharwar – two (Tumkur and Mysore) have over 85% coverage but Dharwar has seen only 45% citizens enrolling for Aadhaar cards. Progress in Rajasthan has been slow: all three districts in the initial programme – Ajmer, Udaipur and Alwar – have only 20% coverage.

 

Now, let’s move on and look at India’s top 20 districts by population and the current Aadhaar sweep.

 

Table 3: Over 85% East Godavari Residents Enrol For Aadhaar

 

District State Population Aadhaar Enrolments % Coverage
Thane Maharashtra 11,054,131 4,347,082 39
North 24 Parganas West Bengal 10,082,852 339,345 3
Bangalore Karnataka 9,588,910 2,727,336 28
Pune Maharashtra 9,426,959 3,360,771 35
Mumbai Suburban Maharashtra 9,332,481 6,641,349 71
South 24 Parganas West Bengal 8,153,176 373,611 4
Barddhaman West Bengal 7,723,663 196,388 2
Ahmedabad Gujarat 7,208,200 1,162,159 16
Murshidabad West Bengal 7,102,430 1,254,008 18
Jaipur Rajasthan 6,663,971 1,981,992 30
Nashik Maharashtra 6,109,052 2,130,839 35
Surat Gujarat 6,079,231 873,042 14
Allahabad Uttar Pradesh 5,959,798 202,866 3
Paschim Medinipur West Bengal 5,943,300 67,177 1
Patna Bihar 5,772,804 611,004 10
Hooghly West Bengal 5,520,389 747,490 13
Rangareddy Andhra Pradesh 5,296,396 2,796,450 53
Nadia West Bengal 5,168,488 241,882 5
East Godavari Andhra Pradesh 5,151,549 4,424,554 86
Purba Medinipur West Bengal 5,094,238 80,855 1

Source: UIDAI

 

It would stand to reason that eventually, these are the districts that need to see deeper coverage of Aadhaars if direct transfers are to work effectively. East Godavari in Andhra Pradesh has a coverage of 86%. Mumbai Suburban has coverage of over 70% while Thane, the most populous district in the country (population of 11.05 million) has coverage of nearly 40%.Yes, we didn’t know Thane was India’s most populous district either!

West Bengal has been very slow in its response to Aadhaar: Only Murshidabad has coverage of 18% while other districts – North 24 Parganas, South 24 Parganas, Barddhaman, Paschim Medinipur, Nadia and Purba Medinipur – have 2-5% coverage.

 

How Will Direct Benefits Transfer Work?
The transfer of funds involves three stages: Get an Aadhaar, open a linked bank account which will then be linked with the benefit or subsidy programme that you are entitled to or claiming from.

 

How is the banking system gearing up for this? According to Reserve Bank of India data, the total number of savings bank accounts was 624 million in 2011. And banking outlets opened in villages under the Government & Reserve Bank’s financial inclusion efforts rose to 181,753 at the end of March 2012 from 116,208 at the end of March 2011.

 

As of March 2012, bank accounts opened for receiving subsidies across the country stood at 105 million against 75 million at the end of March 2011.  Now, as we mentioned earlier, 260 million Aadhaars have been issued so far. Residents are given the option of linking their existing bank account to an Aadhaar during enrolment as well.

 

The Aadhaar universe should intersect with the bank account universe but it’s not clear at this point what the quantum is and how fast it will grow. The numbers would grow as the Government makes authentication mandatory for receiving subsidies or benefits. Even then, the technical-logistical challenges may restrain the pace of building linkages.

  1. Shrikant Reply

    January 23, 2013 at 2:38 am

    Instead of looking at population saturation of Aadhaar to analyse DCT, it would be more relevant to see the what is the size of the DCT beneficiary in each district and see how many of them have Aadhaar etc.

Leave a Reply

Your email address will not be published. Required fields are marked *

*