Unique Identification Authority of India has kicked off operations. It launched its logo and we get to near news bytes on UID every day in papers. Now it has issued a nice working paper on how UID can be used for increasing financial inclusion. It says technology has helped banking but poor are still unbanked:
It will provide four benefits:
- UID would be sufficient for KYC
- It will allow banks to network with business correspondents
- It will be a high volume low cost approach
- It will allow electronic transactions
One big argument against UID is that it violates the Right to Privacy. From this flow arguments such as the use of UIDAI data by intelligence and security agencies.
Behind these surface arguments lies a big, unsaid fear: If the UID project succeeds, it will render Leftist politics pretty much irrelevant (more about this anon). If a poor person gets money that is due to him directly in his bank account, he will have no reason to plead with tyrannical local officials or grovel before his elected representatives. This scenario, which can get real in the near future, terrifies many.
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