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Benefits of Aadhar Card

Benefits of Aadhar Card


Why is it so important today?

Although it was launched with the intention of being a mere residency proof, Aadhar Card has evolved into a ubiquitous identification proof.  If we talk about the present scenario, numerous governmental and private offerings are linked to the Aadhar Card. Today, Aadhar card has a unique identification number (UID) which has been meted out to each individual and acts as a basis for countless daily activities of Indian residents.

To understand better, Aadhar number is a unique 12 digit number. which confirms a citizen’s unique identity. The Unique Identification Authority of India (UIDAI) is the body which is entrusted with the task of collecting and storing the data of all individuals.  Holding an Aadhar no. is now mandatory for all Indian residents. The Aadhar program was launched with the motive of effective dispersal of governmental financial and other subsidies, benefits and services to consumers. However, it has now been fully embraced by the semi-government and private sector banks and companies too. There are a number of wide-ranging benefits that holding an Aadhar card offers:

  • LPG Subsidy (Direct Benefit Transfer based on Aadhar): With the introduction of Aadhar Card,  the amount for LPG cylinder subsidy is directly transferred to the bank account that is linked to Aadhar after linking the LPG Consumer ID. The amount that is credited is the marginal difference between the market price and the subsidized rate for LPG. Additionally, the subsidy for a diverse range of commodity products including sugar, rice, pulses, etc. is transferred to the linked account as well.

  • Wages for MNREGA:  Under the Mahatma Gandhi National Rural Employment Guarantee or more popularly known as MNREGA are also now directly credited to the worker’s bank accounts that have been linked to their Aadhar number.

  • Passport: This is one of the greatest benefits of holding an Aadhar card! Possessing an Aadhar card makes you eligible to receive a passport in just 10 days. With this provision, police verification is done at a later stage as contrasted to the conventionally existing rule that required police verification immediately.
  • DigiLocker: The Indian Government has recently launched a new system for everyone: i.e. the digital locker (DigiLocker)for storing any personal documents on the government’s server. However, holding an Aadhar card number is compulsory to make use of this facility.
  • Monthly Pension: All pensioners from certain states are now expected to register their individual Aadhar card numbers to their respective departments before receiving their monthly pension amounts.

  • Provident Fund: This is very similar to the point that has been mentioned above. Like in the case of a pension, provident fund money will be transferred to an account holder who has already linked their Aadhar number with employee provident fund Organization (EPFO).

  • For a new bank account: An Aadhar letter that has been provided by UIDAI will now be considered acceptable by banks as enough valid proof to open a new bank account. It also serves as an address proof i.e. this reduces the burden of carrying a number of documents to open a bank account.


Updated: February 9, 2018 — 6:19 pm

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