Aadhaar to Help Expand Banking System, Provide Easy Access to Loans

RBI Governor Raghuram Rajan welcomed Supreme Court ruling on use of Aadhaar card in more schemes and said it will help in financial inclusion drive and providing easy access to loans.

With an UIDAI number, a person will be able to open a bank account as it will work as an identification document and will help in easier access to loans, he added.

“UID will ensure that people will not get multiple loans from different places. We can make sure that it does not happen. This is an example on how we can make more lending possible.

The Supreme Court had permitted voluntary use of Aadhaar card for schemes like MGNREGA, all types of pension schemes, PM’s Jan Dhan Yojana and EPF.

While modifying its earlier order restricting use of Aadhaar for PDF and LPG only, the apex court ruled that Aadhaar card scheme would be purely voluntary and not mandatory till the matter is decided by the court.

Author: SubEditor

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