Aadhaar is a unique identification number issued by the Government of India to record an individual’s details in the database. More than 123 crore Indians already have an e-Aadhaar number assigned to them. It allows the Unique Identification Authority of India (UDAI) to monitor the financial activities of the citizens, thus planning public welfare and security expenses around it.
Aadhaar vs e-Aadhaar
Aadhaar represents the hardcopy of the document, containing all your personal details, such as:
- Date of birth
- 12-digit Aadhaar number
- Address, etc.
e-Aadhaar, on the other hand, is a digital copy of your Aadhaar card, which you can download from UDAI’s official website.
To do so, you have to go to their official website and enter your 12-digit Aadhaar number, and a one-time password (OTP) sent to your registered mobile number.
You can easily avail the e-Aadhaar download feature provided by UIDAI by undertaking the following steps:
Step 1: Go to the official UIDAI website.
Step 2: Go to the ‘My Aadhaar’ option, and click on ‘Download Aadhaar’.
Step 3: Enter your Aadhaar number/Enrolment ID/Virtual ID.
Step 4: An OTP will be sent to your registered mobile number, which you have to enter to download it.
One of the e-Aadhaar benefits is that it is an acceptable form of identification proof you can carry with you in the digital version. It also guarantees safety, as it is a password-protected file. This prevents your personal information from getting into the hands of wrong people who might misuse it.
It gives you easy access to your 12-digit number, which can be useful while applying for a personal loan.
There are several advantages of having an Aadhaar card in your name:
1. Identification proof
Aadhaar is the most common form of ID proof available in India. It is an acceptable age as well as address proof. It is also an important item required during any financial transaction. For example, it is an important document for applying for a personal loan.
The government has several subsidy programs, such as PAHAL (DBTL), Public Distribution System (PDS), National Child Labour Project, etc. However, these subsidies cannot be availed unless you provide a valid Aadhaar or e-Aadhaar as your ID proof.
3. KYC verification
Several organizations require you to produce your Aadhaar card for KYC verification. Such organizations also include financial institutions providing loans.
Various NBFCs such as Bajaj Finserv provide instant loans against a few KYC documents like Aadhaar.
4. Employees’ Provident Fund Account
It is mandatory to link your Aadhaar Card with your EPF account according to RBI guidelines. It will ease the speed with which you can transfer or withdraw funds from your account.
According to the Supreme Court ruling, it is mandatory to do Aadhar PAN link to file income tax returns. PAN Card is an essential document required for any when you want to check your CIBIL score for a personal loan.
Even though the Aadhaar or e-Aadhaar is mandatory for the above services, the government has ruled out its requirement for others such as buying a new SIM or appearing in the national entrance tests and school admissions.