Aadhar, the unique identification scheme is going to aid banks a lot in bringing banking to the rural sections of the country.
Many banks have joined hands with Unique Identification Authority of India (UIDAI) to act as registrars for signing up residents till March 2011. UIDAI has now decided to pay Rs 50 per enrolment to banks as well as LIC in a move to capitalise on the financial inclusion scheme of the government.
Below poverty line (BPL) residents will be given Rs 100 per enrolment for enrolling with Aadhar.
For every bank account opened in unbanked areas having population of 2000 and above, banks will be given Rs 1000 as part of the financial inclusion scheme.
"This money will be given because the cost of collecting biometrics, photographs and the manpower comes to around Rs 30-40 per person. Moreover, banks will also have to cover rural areas as there is no benefit of such a scheme," said a UID official.
At present, the UIDAI has 17 bank registrars, including the country's largest lender the State Bank of India.10 more banks are soon to be added in this group.