10 Services for Which an Aadhaar Card is Necessary

The Unique Identification Authority of India (UIDAI) introduced Aadhaar Card as an essential document. It is accepted in India as a proof of address and proof of identity. All the resident citizens of the country as well as NRIs who meet specified conditions can avail this document. The Aadhaar database stores the card holder’s demographic and biometric information. The biometric details include iris scan of both the eyes and fingerprints of all the ten fingers. This information is unique to a person, making it easier to authenticate the identity of the card holder.

Possessing an Aadhaar Card is not mandatory, but still the need of the hour. This is because several financial services can be accessed only through this document. Also, certain government subsidies and benefits are passed to individuals when Aadhaar is linked to the relevant service. Below, we will discuss the top 10 services for which owning an Aadhaar is important.

1. Income Tax Returns

Individuals can electronically verify their Income Tax Returns with an Aadhaar Card. Thus, there is no need to send a signed physical copy of the ITR to the Central Processing unit (CPC). All a person has to do is link his/her e-filing account with Aadhaar number. This immediately links PAN Card with Aadhaar Number for electronic validation through an OTP received on the registered mobile number. Once the OTP (One Time Password) is entered at the relevant section, the ITR is instantly verified online.

2. Financial Products

To apply for financial services such as home loan, small cash loan, personal loan, bank account, etc, you need to submit your Aadhaar Card. This document works as your identity as well as residence proof. You also have to submit your PAN Card. For your bank account to keep working, you also have to link your PAN with Aadhaar. Also, for investment products, these two documents are important.

3. DigiLocker

A DigiLocker facilitates the use of e-documents and its sharing to all the agencies. It is one of the innovative steps to boost the Digital Indian Program. A DigiLocker also reduces the need to carry physical documents to agencies. After creating DigiLocker, the individual has to upload his/her Aadhaar to avail Aadhaar related services. Not just Aadhaar, a person can electronically upload several such documents in this locker. The documents are digitally signed through the e-signing facility. After this, the e-signed documents can be shared on a need basis with organizations.

4. Property Transactions

One can make property transactions in paperless and cashless fashion. Several states in India allow people to rent out property by visiting the website of the Department of Registration and Stamps. Here, the person has to provide some details including that of his/her Aadhaar, digital signature, and property documents.

The tenant, witness, and sub-registrar have to follow suit and pay a fee electronically. The details are then stored electronically in a digital locker. These details can be operated with Aadhaar. Thus, there is no need of cash payment or physical presence of required parties for renting out a property.

5. Mutual Funds

As an investment product, Mutual Funds are quite widely used and reliable. This is also a trustworthy tax saving instrument used by many in India. Every year, several investors invest their money in securities like bonds, stocks, money market instruments, and other assets. A professional fund or money manager distributes the assets of the fund. This is done with the intention to get a good capital gain for the investor of funds.

When investing in Mutual Funds, e-KYC procedure is completed with the Aadhaar number of the investor. The investor receives an OTP on his/her registered mobile number with Aadhaar, which is then used for verification. The investor uploads a self-attested copy of his/her e-Aadhaar. Once this document is verified, the investor becomes KYC compliant and can transact in Mutual Funds.

6. Insurance

IRDAI (Insurance Regulatory and Development Authority of India) issues a draft indicating that one can avail insurance products online from the relevant e-commerce websites. For this purpose, e-KYC is important. The e-KYC process can be done from National Securities Depository Limited. But, it is easier to do so using e-Aadhaar.

7. Pension Schemes

People can open their NPS (National Pension Scheme) account from home. This is possible with eNPS. The person needs a working internet connection, Aadhaar Card number, and the PAN Card for the procedure. Even NRIs can use this facility. It is mandatory for every Central Government pensioner to possess an Aadhaar Card, which has to be then linked to their bank accounts.

8. Scholarship

It is almost mandatory for students to submit their Aadhaar Card and details in college for getting admission. If not, this document is at least necessary if the student wants to apply for a fellowship or scholarship with University Grants Commission (UGC) or the State Government. Thus, it is for the best interest that students must have an Aadhaar Card. It will help them with government facilities linked to different scholarship and educational schemes.

9. Healthcare

If a person has an Aadhaar Card, he/she can avail several online healthcare facilities. For instance, Aadhaar helps to transfer relevant data of a patient between a laboratory and pharmacy. It also allows the service provider to carry on internal transfers of patient information. A leading example of such benefit is – Indian residents who wish to book online appointments with AIIMS or other government hospitals can use their Aadhaar Card for the purpose. Another instance is that several hospitals use the biometric markers of the card holders (doctors, nurses, and staff) to keep a track of attendance.

10. Transport

In India, certain states have made it necessary for individuals to possess an Aadhaar Card. States like Andhra Pradesh need Aadhaar for all road transport authority procedures such as change of vehicle ownership, driving licence, vehicle registration, etc. Also, Telangana from July 2015 follows this protocol to reduce malpractices during transactions. A growing number of Indian states are adopting this protocol.

To Sum it Up

Thus, there are certain services for which it is necessary that individuals have an Aadhaar Card. This is why it is best to apply for this document at the earliest. The Aadhaar application process is easy. One can find the enrolment form online. After this, the person has to visit an enrolment centre to complete the application process. The document comes to the registered address of the applicant after 90 days.

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