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National Payments Corporation of India (NPCI) has linked 15 crore bank accounts with their Aadhar numbers under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, reports PTI. Beneficiaries of government subsidies or direct benefit transfers (DBT) will be brought under the linkage program. By June 30, 2015, 2 crore accounts will be added under the DBT, totalling to 17 crores.

DBT-Aadhar linkage for unique identification of beneficiary

Late last year, we reported that the Planning Commission had linked 10 crore Aadhar numbers with bank accounts under the Digital India mission. The linking of an Aadhar number with a bank account makes the job of identification easier for the government in order to make welfare payments and subsidies directly into the bank accounts. This Aadhaar-bank account integration is available for over 300 banks across the country.  These services are accessible across states even if the bank account holder moves states.

PMJDY currently has 12.58 crore bank accounts

According to data published by the PMJDY, there were 12.58 crore accounts as of late January 2015 accounting to deposits of $1.7 billion (around Rs 10,590 crores). Earlier this year, the UIDAI issued around 7 crore Aadhar cards in Uttar Pradesh, amounting to 35% of the state’s population, with 2.5 crore cards out of those solely in Bihar. Account holders have the option of opening an account with zero balance. The scheme also allows an overdraft facility of Rs 5000 after 6 months, transfer funds and check balance through a features phone. Account holders will also receive a RuPay debit card for ATM transactions and retail outlet transactions.

NPCI History

  • Set up in 2009 in collaboration with the RBI and Indian Banks’ Association, the NPCI is India’s non-profit umbrella body for all retail payments systems. Among the NPCI’s objectives is to unify multiple retail payment systems across the nation and follow a standard business process for the same.
  • It launched the e-commerce payments solution RuPay in 2013.
  • In February this year, NPCI also initiated the implementation of Unified Payments Interface (UPI) to simplify and provide interoperability with a single interface across all systems.
  • In December last year, the NCPI was authorised as the Bharat Bill Payment Central Unit (BBPCU) to implement the Bharat Bill Payment System (BBPS), a unified bill payment system for India.