Aadhaar-enabled system to be used for subsidy payments

September 20th, 2011 - 7:51 pm ICT by IANS  

New Delhi, Sep 20 (IANS) The unique identification numbers or Aadhaar-enabled unified payment infrastructure will be used for direct transfer of subsidies on kerosene, liquefied petroleum gas (LPG) and fertilisers, the government said Tuesday.

The terms of reference of the task force headed by Nandan Nilekani, chairman of the Unique Identification Authority of India (UIDAI), have been expanded to include an Aadhaar-enabled unified payment infrastructure, the finance ministry said in a statement.

The task force was constituted in February this year to recommend and implement a solution for direct transfer of subsidies on kerosene, LPG and fertiliser to intended beneficiaries.

Now, the finance ministry has asked the task force to suggest a solution for direct transfer of subsidy, wherein ministries and state governments, through a payments bridge, can transfer funds into any Aadhaar-enabled bank account on the basis of the UID number.

The task force will submit its final report on the extended terms of reference within three months.

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