UIDAI to tie up with banks to create financial products

Unique Identification Authority of India (UIDAI) plans to join hands with public sector banks to create financial products suited to 'Aadhaar' according to V S Bhaskar, deputy director general of UIDAI.

 He said the authority was weighing the option and would sign a memoranda of understanding (MoUs) with banks at an appropriate time.

Aadhar, a scheme launched in September, has so far enrolled 100,000 people and is aimed at making public services more efficient.

One of the banks to have tied up with the UADAI is the State Bank of Hyderabad and as per the agreement, the bank would take forward the authority's enrollment process through its 1,200 branches that have a presence across 14 states and 2 union territories.

The bank has also been tasked with the responsibility of implementing the smart card project for EBT (electronic benefits transfer) payments across 5 districts of Andhra Pradesh where it mainly operates. The service is to start from the coming month.

As per the financial inclusion plan the, MD of the bank, Renu Challu said the bank's operations would cover 318 villages in Andhra Pradesh and Karnataka thereby serving a population of 1.4 million population in the first phase of the project which is aimed to be completed in March 2011.