Make Adhaar financial model To be a Self-sustaining and independent, So that it can help to fund its own development Project , Technologies, Enhancements R&D, without Being government dependent

1. Case Study – A Dilemma with ADHAAR
Preparer Name : Raghib Quamar
Emphasized:
A. To increase usability and easiness without compromising privacy of an individual.
B. innovative plan to Increase reach of ADHAAR & completely cover India's Population especially in remote parts of country
where technology access is nil.
C. Make ADHAAR’s financial model to be a self-sustaining & independent, so that it can help to fund its own development
projects, technologies enhancements, R&D, etc without being government dependent.
D. Restructure current ADHAAR HR Policy to avoid fraudulent activities done due to loopholes in recruitment process and
presence of mischievous elements.

2. A. Increase Usability and easiness without compromising privacy of an individual
Needs to be worked towards awareness of Aadhar system and its benefits to the general public
 Aadhar is a very robust and useful Digital ID utility for residents – The
end user specially the residents of Rural India has to be educated about
the benefits of Aadhar and where / when / how they can avail those
services. The Government of India has already listed out many scheme
which is directly linked with Aadhar and end user can get direct benefit.
Now as per The Supreme Court’s latest comment, it is not mandatory to
have Aadhar for all the services but can be a very useful tool for the
same.
 A nationwide portable identity across the states and union territory to
avail listed services – Aadhar is one time unique number provided to
end user for life time, which can be used as all over the country and it is
widely accepted which has to be passed to Rural Areas. Aadhar is really
reducing the cycle time of service delivery and ensuring it is reaching to
required individual.
Aadhaar project is one of the significant projects in India to bring the universal trend of digital
innovation. The project was focused on the inter-operability of various e-governance
functionalities to ensure the optimal utilization of Information, Communication and Technology
Infrastructure. government applications, and also has promoted Aadhaar enabled transactions.

3. A. Continue….
Increase usability and easiness – Below are the recommendations.
 Adding more Government’s Services / Scheme linked with Aadhar –
+ Aadhar for all digital payments. Cash Transfer.
+ Ration Card / PDS uses Aadhar authentication to identify the right beneficiary.
+ BPL families can be identified for food items under Food Security Act.
+ It can be used for De-duplicating various scheme databases.
 Cloud Based e-Voting – Currently we have voting system based on EVM “Electronic Voting Machine”.
The major drawback of the existing system is, it is very expensive and huge manpower is required
during voting. In existing system one of major observation is that in all the booths average 60% to
65% voting happening, many people who are interested but could not make it because of many
reasons which is giving space for bogus voting. To improve this system Cloud based e-Voting can be
seen as future polling system.
 Identification of an Individual during Natural Disaster including Denture Identification– Denture
Identification is a method of recognizing an individual who has been affected in course of a natural
disaster, Recently in our country June 2013, a natural disaster took place in Uttarakhand in which
many dead bodies swept away, and there were several bodies who were not been able to recognize.
In such situation Denture Identification linked with Aadhar can help the agencies for identification.

4. A. Continue….
Increase usability and easiness – Below are the recommendations.
 ATM with Bio Metric Reader – It can avoid ATMs fraud by using finger print as an authentication
instead of PIN, in small shop Bio-Metric enabled machine can also be linked for payments, which will
redirect through bank for payments with the combination of Aadhar number and finger print.
 Municipality & Gram Panchayat Level Services – In India Municipal Corporations are local
government bodies that work towards the development of cities having more than 10 lakh citizens.
They are responsible for managing community services like public healthcare, sewage, electricity,
road etc. Though, the delivering of the services by the municipal corporation is bad. Complaints
registered in Municipal Corporation sometimes have zero response and public health is put in danger
as lack of functionality. There should be a Aadhar based complaint register system and assignment
based on the issues. Aadhar based complaint can save eliminate false complain and push the staffs to
resolve the issues on situation basis. Hence it can be tracked and resolved effectively.
 Domestic Flight Check in – It is suggested to have a domestic flights checkin system based on
Aadhar, passengers has to punch their finger while entering Airports and passing security checks
same process for exit, it will make sure security level along with low Manpower cost.

5. A. Continue….
Ensuring the privacy of the individuals – Below are the recommendations.
 Resident or Aadhar Holder should be the owner of the data – There should be a system which will
intimate the Aadhar holder and ask for authentication in case of any transaction or third party
involvement (1st Party – UIDAI, 2nd Party Aadhar Holder) without the consent of holder, data should
not be passed / processed or share even with registered organization. Government should be
custodian of the data with full responsibility.
 Application of IT Act 2000 and amendment in law time to time – There should be a strict
enforcement and penalties of any violation Aadhar number sharing / publishing policy. Multi layered
security system has continuing enhancement of the same.
 Carefully Dealing with Third Party Agencies – All the third party agencies has to certify from UIDAI
for their regulation, Agencies' system and equipment's should be tested on regular basis to make
sure no malfunctioning while processing Aadhar data.
 No foreign Agencies – All the data analysis, IT Risk Management and control should have with Indian
organization.

6. A. Continue….
Opportunity to explore Aadhar Data privacy and protection by Block Chain
Technology.
“The Block chain is a type of distributed ledger technology that
first gained prominence as the technology underpinning Bitcoin.
Bitcoin created a way for two strangers to transact over an
untrusted medium like the internet safely and securely without
the intervention of a trusted third-party like a bank.”
“The Block chain can, thus, track anything that has value in the
digital realm. This is significant since it allows users to see (to a
large extent) where and how their information is being used”
Existing System
Proposed System – A simple Model

7. B. Innovative plan to Increase reach of ADHAAR & completely cover India's Population especially in remote parts of country
where technology access is nil.
90.4% Population already covered under Aadhar
9.6 % Still needs to be covered.
States with Saturation level below 85% are 6
State Completion %
Bihar 85.3%
Manipur 82.3%
Arunachal Pradesh 80.1%
J& K 76.9%
Nagaland 57.1%
Meghalaya 28.4%
Assam 14.3%
14,000 +
Functioning
13,000 +
Functioning

8. B. Innovative plan to Increase reach of ADHAAR & completely cover India's Population especially in remote parts of country
where technology access is nil.
7% +
Enrolment System (Currently) Numbers Proposed New Numbers
Registrars 164 0% 164
Enrolment Agencies 708 10% 779
Operator Certification Agencies 1 0% 1
Certified Operators 6.28 Lakhs 10% 6.90 Lakhs
Enrolment Centers 48,000 + 10% 52800
Based on the Available data and moving towards achieving 100% target, below are
the summarize steps which needs to be taken.
 Increase the base of Operators and Enrolment agencies as per proposed plan or
mobilize the manpower from states where completion is already 100% to save
cost.
 While increasing enrolment centers, needs to be focused on Post Office (1st
Preference) Bank (2nd Preference).
 Post Office having a reach to maximum areas of India and can be used very
effectively for Aadhar enrolment.
 While increasing Certified Operators, Rural people should be hired. Hence it will
be double edge solution, same way easily access to Rural Areas with
empowerment of Rural People.
3% +
 Certified Operators should be
trained to accomplish the work
in Rural Areas with additional
equipment's.
 Reaching to remote areas with
local people (Certified
Operators) and organize camps
to collect data which will be
processed in nearest Post Office
or Banks.
 Backup and solar power can be
used for camps in Remote areas.

9. C. Make ADHAAR’s financial model to be a self-sustaining & independent, so that it can help to fund its own development
projects, technologies enhancements, R&D, etc without being government dependent.
Financial Model
Revenue Model
Transactional
Based
Gain Share
Franchise Fee
Cost Model
Cost per New
Aadhar
Manpower Cost
R&D
“Development”
Revenue should come based on number of transactions and
used by each beneficiary, Billing should be done accordingly.
There are many government and private organization, who
are getting direct cost benefit by Aadhar system, a model is
proposed for Gain Share, need to agreed on % of total saving.
Enrolment Agencies should pay a Fixed Franchise fee on yearly
basis based on their workload, a detailed plan has to be
initiated.
Total Cost per Aadhar has to be finalized and will be
reimbursed to Enrolment Agencies as per their work.
Agreed Manpower Cost also needs to be reimbursed to the
Agencies as they are already giving us yearly fee.
This cost will be directly use for technology enhancement,
R&D or any development projects.
Next Slide Few Data Available
Proposed HIGH Level Financial Model

10. C. Make ADHAAR’s financial model to be a self-sustaining & independent, so that it can help to fund its own development
projects, technologies enhancements, R&D, etc without being government dependent.
Transactional Based Revenue
As per available data from Government there is an huge opportunity to generate revenue based on Financial
Transactions, below are the few fact & figures.
 Aadhaar Payment Bridge (APB): Government of India transfers benefits and subsidies directly to the beneficiaries
bank account through APB. Over 2.39 billion successful transactions remitted over Rs. 764.7 Bn
 Aadhaar Enabled Payment System (AEPS): Over 756 Million successful transactions done on this platform across
nearly 0.33 million micro ATMs
 Aadhar Pay : 66 Banks are already live on Aadhar pay.
 Pay to Aadhar: Over 49 banks and millions of Aadhar linked with bank account to start receiving money using
Aadhar as financial address.
Based on above data, it is strongly recommended to have a revenue model based on transactions, UIDAI will bill to
the Organization / firms / Government bodies for availing Aadhar system which will increase UIDAI revenue.

11. C. Make ADHAAR’s financial model to be a self-sustaining & independent, so that it can help to fund its own development
projects, technologies enhancements, R&D, etc without being government dependent.
Gain Share Based Revenue
As per available data from Government there is an huge opportunity to generate revenue by Gain share based on
Fiscal impact of Aadhar, few impact data given below.
361
570
660
800
108
171
198
240
Reported Saving
upto 2016
Reported Saving
upto 2017
Uncertified Saving
upto 2018
Expected Saving
upto 2019
Pahal
49%
PDS
23%
MGNREGS
19%
NSAP
1%
Others
8%
Scheme Wise Reported Savings
If agreed for 30% Gain Share Revenue Model –
240 Billion INR Revenue can be generated.

12. Workings
 2.3 Billion Transaction Expected
and billing will be for .50 INR per
transaction. Yearly expected
growth is 10%.
 Gain Share is projected 35% of
Reported saving and expected
growth is around 11% YoY.
 Franchise Fee is calculated 2 Lakhs
as yearly fee.
 Manpower cost is based on an
average 2.10 Lakhs per head labor
cost on yearly basis.
 R&D cost is base considered as 80
Billion in 2019 and expected to
increase 13% Y0Y
Nature 2019 2020 2021 2022 2023 2024 Total
Transactional Based 1.20 1.31 1.45 1.59 1.75 1.92 9
Gain Share 240.00 266.40 295.70 328.23 364.34 404.41 1,899
Franchise Fee 9.60 10.08 10.58 11.11 11.67 12.25 65
Total Projected Revenue in INR Billion 250.80 277.79 307.73 340.94 377.76 418.59 1,974
Nature 2019 2020 2021 2022 2023 2024 Total
Manpower Cost 131.88 145.07 159.57 175.53 193.09 212.39 1,018
Aadhar Production 1.29 1.43 1.50 1.43 1.28 1.16 8
R&D Development 80.00 90.40 102.15 115.43 130.44 147.39 666
Total Projected Expenses in INR Billion 213.17 236.90 263.23 292.39 324.81 360.94 1,691
Profitability 37.63 40.90 44.51 48.54 52.95 57.65 282.17
2019 2020 2021 2022 2023 2024
Revenue 251 278 308 341 378 419
Expenditure 213 237 263 292 325 361
Revenue
UIDAI Finacnial Projections - Based on Financial Model
Expenses
Projection Based on Revenue Model which is expected to grow by 67% + in next 5 years
251
278
308
341
378
419
213
237
263
292
325
361
2019 2020 2021 2022 2023 2024
ProjectedRevenue VsProjectedExpense "Current+ 5 Years"
Revenue Expenditure

13. C. Restructure current ADHAAR HR Policy to avoid fraudulent activities done due to loopholes in recruitment process and
presence of mischievous elements.
To avoid the loopholes below are the major points, where focused is required.
• All the manpower should be linked with UIDAI.
• Manpower will on payroll of Enrolment Agencies.
Hierarchy Changes
• Each personnel should go for Background Verification before joining.
• Every quarter separate third party verification.
Background Verification
• All the personnel should be transferred from one Project / Areas to
another on every six months.
• It is advisable for transfer outside states.
Mobilization &
Demobilization of resources

14. Summarized Recommendation
1. Need to enhance knowledge base about Aadhar to the General Public and encourage them to use
specially in Rural Areas.
2. Increase the usability as proposed in new areas while ensuring data privacy by enforcing applicable
laws.
3. Involvement of local people mainly from rural areas should be hired to achieve 100% completion.
4. Post Office and Banks should be top most priority to reach out to the Rural Areas through campaign &
camps.
5. Revenue Model should be adopted, there are huge opportunity to become self financed organization.
6. Cost model will be mostly for Manpower and R&D.
7. Continuous background verification required for each personnel “On Payroll or Off Payroll”