An effort designed to increase identity controls in India could boost mircopayment and remittance services in that country, an official at the Unique Identification Authority of India tells PaymentsSource.
The agency oversees the Unique Identification project, which the government established about a year ago to operate a database that would include identification numbers and basic biometric data for up to 600 million citizens.
Citizens would use the numbers to prove their identities for such tasks as voting and accessing welfare benefits. According to the official, who requested anonymity, consumers and financial institutions could use the system for remittances and other small payments, especially in areas that lack a high density of banking services.
“What we will also do is set up a countrywide network of business correspondents,” the officials says. “Using the platform, business correspondents would be able to carry out instant transactions at the remotest places in the country.”
The correspondents would carry small payment terminals or card readers, and the equipment would connect to mobile-phone networks. “Users would need to get their identity authenticated and withdraw or put money into their bank accounts,” he says. “The money would be manually disbursed by the correspondent.”
