Stock Market

Making ‘angootha chhaap’ fancy: Govt to launch Aadhaar Pay on Apr 14

Chillicious News

There was a time where using your thumb impression was a sign of lack of education.

But thanks to the government’s efforts, the thumb can soon be used by everyone to carry out bank transactions.

The Narendra Modi government plans to launch Aadhaar pay on April 14, coinciding with the birthday of BR Ambedkar, according to a report in the Economic Times.

What is Aadhaar Pay?

This is a payment system that requires biometric data of an individual. For a person to deposit cash or transfer money or carry out any other bank transaction, all they would need is their thumb impression and the transaction will be carried out. This provision is for people who have linked their bank accounts to their Aadhaar.

How does it work?

It is a simple process. To complete your financial transaction, you have to punch in your Aadhaar number and then give your thumb impression which acts as a password.

Public sector banks (PSBs) have to adopt Aadhaar Pay by April 14 as per the Finance Ministry directive and the state-run banks will have to convince merchants to come on board.

As per an official, the government is expecting 5 lakh merchants to bring the new payment system in place.

To encourage merchants to embrace Aadhaar Pay, PSBs have been advised to make sure the rental charges to set up a PoS terminal does not exceed Rs 100 per month for small merchants.

As the government is persuading more and more people to go digital, it is also taking efforts to make it easy for all to use internet. People have been reluctant to carry out payments online but post demonetisation the shift is visible.

Aadhaar Pay is another initiative by the government to make banking and payments quick, easy and hassle free.