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44,274 (US$ 800) in each FPS merely by the elimination of ‘ghost’ and duplicate beneficiaries – by insisting on the Aadhaar card and checking the data online before issuing the rations.Beneficiaries are sent a text message on their mobile phones when the rations are delivered to the FPS.The State could transfer benefits such as Samurdhi or Internally Displaced People allowances directly, in the form of cash, to bank accounts of eligible citizens, based on their income returns or assets.

Such a national biometric ID system, with instant certification, would make the present porous and leaky welfare distribution systems found in Sri Lanka and India, which is dependent on the discretion and the moral scruples of the bureaucracy, redundant.An agreement was entered into with a bank for the management of the cash and disbursement of cash to the beneficiaries on proof of identity through Aadhaar.Customer service points – bank agent outlets – to help beneficiaries receive payments upon providing the authentication/biometric details were identified, thus helping to leverage the Aadhaar identity to ensure targeted delivery.As Nilekani says: “The technology we have available to us at our stage of current development was not available to America and Europe at the same stage of their development and we have to take advantage of that.” Other than identity, the UID records will capture a whole set of information, the head of family, address, assets – such as cattle and livestock, annual income, religion, educational qualifications, etc. Prahalad of the University of Michigan, in his book ‘Fortune at the Bottom of the Pyramid’ – the poor and marginalised who cannot be reached by providers of financial services now due to the lack of documents certifying identity.Financial institutions are looking forward to use the status that the UID number gives those issued with the Aadhaar card, to bring them into their lending and deposit taking systems to unlock the financial power of the famed ‘Bottom of the Pyramid’ articulated by the late management guru Dr. India has just passed by Ordinance a Food Security Bill, which has to be ratified by Parliament.

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