Government is pushing for linking Aadhar card to your mobile verify. Though it has positive sides to have a unique id identification, it also has some issues due to its implementation.
AEPS - Aadhar Enabled Payment System
Even though you have multiple bank accounts, government is pushing to link your accounts to Aadhar number to uniquely identify your accounts. This is a first move to implement AEPS.
NPCI - National Payments Corporation of India
AEPS is handled by NPCI. They maintains a register in which the Aadhar card number is linked with bank account when you link the both. Here comes the issue in implementation which is getting misused. The register keeps only one bank account details of an Aadhar number and it will be the latest one updated in the system.
Majority of Indian telecom operators have their own mobile wallets/ payment banks.
When you link your Aadhar number to your mobile operator, they can use the same info to open an account for you with their payments application. As Aadhar verification with fingerprint gives them access to information like photo, address, email id etc, they can sign you up to their application without explicit consent.
Once it activates, the NPCI register gets updated with this payments account as your default bank account.
What happens now?
All the default financial transactions linked with your Aadhar will be routed to this payments application.
eg: LPG subsidy, Other government financial aids.
If you are receiving LPG subsidy in your bank account, now you will get it in your mobile operator wallet after linking with Aadhar.
Most of these applications doesn't give you the option to withdraw it in cash!!
AEPS - Aadhar Enabled Payment System
Even though you have multiple bank accounts, government is pushing to link your accounts to Aadhar number to uniquely identify your accounts. This is a first move to implement AEPS.
NPCI - National Payments Corporation of India
AEPS is handled by NPCI. They maintains a register in which the Aadhar card number is linked with bank account when you link the both. Here comes the issue in implementation which is getting misused. The register keeps only one bank account details of an Aadhar number and it will be the latest one updated in the system.
Majority of Indian telecom operators have their own mobile wallets/ payment banks.
When you link your Aadhar number to your mobile operator, they can use the same info to open an account for you with their payments application. As Aadhar verification with fingerprint gives them access to information like photo, address, email id etc, they can sign you up to their application without explicit consent.
Once it activates, the NPCI register gets updated with this payments account as your default bank account.
What happens now?
All the default financial transactions linked with your Aadhar will be routed to this payments application.
eg: LPG subsidy, Other government financial aids.
If you are receiving LPG subsidy in your bank account, now you will get it in your mobile operator wallet after linking with Aadhar.
Most of these applications doesn't give you the option to withdraw it in cash!!
