IDFC Bank puts in place Aadhaar pay infrastructure

IDFC Bank puts in place Aadhaar pay infrastructure

According to the government officials, nearly 40 crore Aadhaar numbers have been linked to the bank accounts. "All one needs is to get the bank account number linked with Aadhaar".

Merchants must download the app and connect to a biometric reader.

India may give banks an incentive of up to Rs 10 for each transaction to encourage merchants to adopt digital modes of payment, helping achieve the objective of a less-cash economy that makes tax evasion easier to detect. To make a payment, the consumer just has to select the bank's name and enter the Aadhaar number. The customer's fingerprint is used to authenticate the transaction. No merchant discount rate (MDR) will be charged to merchants.

With the introduction of first of its kind, the bank targets to bring around 50,000-75,000 merchants onboard by 2019 and total touching 1,00,000 merchants in three years, as reported by The Economic Times. Basic banking services will come to those who even do not have basic mobile phones,"chief executive Rajiv Lall said". A bank employee will be sent to the merchant to help him/her with the use of the application.

And the best part about this new cashless push is that payers don't even need a mobile phone for making the payment. The Android app, which enables customers to pay merchants, was in its pilot phase before this, and was trialled by over 1,500 merchants across 16 states.

Currently, the service has been rolled out only for small value transactions such as payment of grocery bills to vendors and purchases made at a milk booth and so on.

According to the UIADAI, it assured that the Aadhaar Payments are safe as compared to any other mode of the cashless system. These will be IDFC Bank's extended points-of-presence. Both Unique Identification Authority of India (UIDAI) and NPCI participate in this type of payment.