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Project Report Aadhar Project: World's largest Data Management Project

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 Project Report

Aadhar Project: World's largest Data Management Project

A report submitted
In partial fulfilment of the requirements
for the course of
Project Management

by

Aman Raj (202005)

Manish Kumar(202023)

Himanshu Jain(202018)

Shivam Singh (201056)

to the

Dr. Rajeev A (Asst.Professor, IRMA)

National Rail and Transportation Institute (NRTI)

Vadodara, India-390004
Date- 25/11/2022
 Abstract

Due to the lack of a valid form of identification, India's booming economy nevertheless
makes it difficult for many marginalised people at the bottom of the pyramid to access basic
benefits and welfare services. In order to provide identification to India's underprivileged
citizens, the government of India was compelled to establish the "Unique Identification
Authority of India (UIDAI)" because to the country's growing population, immigration from
nearby nations, and the multiple identity card variations, including ration cards and voter ID
cards. The identification project's goal was to encourage greater social and financial inclusion
of all Indian citizens in the country's formal economy. The UIDAI's main duty is to provide
Indian citizens with Unique Identification Numbers (UIDs) or Aadhaar numbers, which can
be used for all government transactions and benefit programmes including the Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA). This study provides a
comprehensive review of the materials and publications about the Aadhaar project that are
available from secondary sources, including as newspapers, academic journals, research
papers, and government reports. Due to the significant degree of uncertainty it carries in a
number of areas, this has been classified in the research as a developmental project. Through
this study, an effort has been made to comprehend the Aadhaar Project's planning and
implementation phases up to 2022. In order to improve the success rate of this and future
government projects, the study also makes an effort to identify potential hazards (the
diamond framework has been employed to provide insightful information). This report
identifies a number of deficiencies and suggests a course of action as well as suitable process
modifications to improve the Aadhaar Project's future project success. A model to increase
the success rate of comparable projects has also been suggested based on the lessons from
this study.
 Introduction

The process of ensuring the social and financial inclusion of all citizens is laborious and
complicated in many developing nations around the world. In many industrialised countries,
the fundamental idea of identity is taken for granted. Conversely, many people in
underdeveloped nations, particularly those who are found at the base of the socioeconomic
pyramid, are frequently denied the luxury of having a recognised form of identification.
Providing a fundamental, nationally recognised form of identification is one of the first steps
toward increased social and financial inclusion for all local citizens. India is currently the
world's second most populated nation and has the largest democracy. India is still developing
as a democracy today, with a strong and expanding economy. Despite the country's booming
economy, a large number of its citizens are unable to access basic services or benefits because
they lack valid identity.
There are 1.2 billion people living in India, and 400 million of them cannot provide
identification (Sathe, 2011). This barrier emerges because organisations in the public and
business sectors want identification documentation before offering any services to locals.
India's poor, marginalised, and underprivileged communities are unable to open bank
accounts, apply for social benefits, access education, or find job because they lack the
necessary documentation to confirm their identification.
Indian government officials want to properly solve the issues of national security, corruption,
and anti-poverty measures by creating a comprehensive identity system. Across the nation,
there have been numerous proven instances of phoney identities, fraud, and duplication of
welfare services, and unfortunately, corruption in India diverts almost 80% of the monies
intended for its less fortunate citizens. The Unique Identification Authority of India (UIDAI)
established the ambitious and cutting-edge Aadhaar initiative to better the economic standing
of all of its citizens. Residents would be able to establish their identification via Aadhaar,
which in the majority of Indian languages translates to "support and foundation," by using a
distinctive identity number supplied by the officially authorised organisation. All residents of
India, whether or not they are citizens on a permanent basis, would receive an Aadhaar
number. To make the system inclusive rather than exclusive, a number is given to all
inhabitants rather than only citizens.
Residents receive an identity through Aadhaar, but this identification does not grant residents
any rights, privileges, or benefits.
One of the biggest, most distinctive, bold, and ambitious biometric identification schemes in
the world, Aadhaar aims to provide identification for 1.2 billion people. Aadhaar aims to
promote greater economic involvement of mostly impoverished and vulnerable segment of
the population, which makes up about 42% of the population in India. Aadhaar provides these
disenfranchised Indian citizens with a way to validate their identification when requesting
services, enabling them to engage in society and profit from the country's rapid economic
progress. For instance, barely 20% of Indians are believed to have a bank account.To get out
of poverty, having a bank account might be really helpful.
The UIDAI's main duty was to provide Indian citizens with "Unique Identification Number
(Aadhaar Cards)" (this is not a card for citizenship). The government wanted to reach 1.2
billion people by 2020, this programme enabled a full "digital ecosystem" that includes state
and market initiatives like direct transfers of state subsidies, employment guarantee
programmes, banking, insurance, and financial sectors. It is anticipated that this programme
will increase expectations for the transition to national e-governance. UID-enabled bank
accounts will spur the financial inclusion of the underprivileged.
According to Sun, Hichang, and Sanchez (2009), the centralised database will aid in data
surveillance as well as government surveillance efforts to stop theft and other antisocial
activities. Information from Aadhaar Cards will be linked to other identity systems, including
voting and bank cards.
The goal of this study is to identify potential hazards and reaction strategies of a very
complicated UIDAI project while taking into account these advantages and the needs of the
nation. The interaction of numerous system stakeholders is another factor that determines
whether such projects are successful.
 Definition and Planning
Budgeting
The project's official budget was INR18,000 crore ($3.0 billion). For the agency's first year of
operation, a sum of INR100 crore (US$17 million) was allotted in the 2009–2010 union
budget. With Pranab Mukherjee, Minister of Finance, granting INR1,900 crore (US$320
million) to (UIDAI) for 2010–2011, UID has received a significant boost. For the 2012–13
fiscal year, Pranab Mukherjee, a former finance minister, allotted INR1,758 crore (about
$300 million). INR8,962 crore ($1.5 billion) was the total amount approved for Phase I, II,
and III up until March 2017. The 2014 budget after national government transition stod at
2039.64 Cr INR for FY 2014-15 increasing from previous years 1550 Cr INR. 30 cr INR was
set aside on marketing and advertising campaigns in the same year. The union cabinet
allocated 1200 cr INR for the phase 5 of the project and gave a target of 100 cr enrollments
by the end of 2015.

Scope
The initiative aims to provide Indian citizens with a distinct identity and a digital platform for
anytime, everywhere authentication. To provide excellent governance, effective, transparent,
and targeted delivery of subsidies, benefits, and services to Indian citizens, with funds
coming from the Consolidated Fund of India or the Consolidated Fund of State, respectively.
To provide a policy, procedure, and system for providing an Aadhaar number to Indian
citizens who seek one by providing their biometric and demographic data throughout the
enrollment process. Create systems, policies, and procedures for updating and authenticating
Aadhaar holders' digital identities. To make sure that the IT infrastructure is resilient,
scalable, and available. Create a long-lasting, viable organisation to carry the UIDAI's
mission and core principles. Ensure the privacy and security of individual's identification
information and authentication records. Ensure that the Aadhaar Act is being followed in
letter and spirit by every person and organisation. Create regulations and guidelines that are
in line with the Aadhaar Act to implement its contents.

Organisation and heirarcy structure:

*Organisational structure demonstrated by current position occupants.

UIDAI is statutory authority established under provisions of 2016 Aadhar act and it comes
under the ministry of electronics and information Technology. Nandan Nilekani was the first
chairman and the father of UIDAI.
 Interdependency and Ecosystem diagram

Risk Assessment and Management

The Aadhaar project is viewed as being strategically important in light of the analysis of
diverse facts accessible from secondary research and subsequent discussion among the
authors.

Nature is anticipated to have the project's scope (cover all Indians and link
government-initiated benefits/schemes for social reason) as a "constraint," whereas the
expense may be "acceptable."
Where the following terms describe the priority matrix elements:
● Constraint—parameter is a fixed value that would not alter regardless of the
circumstances
● Improve—others may be able to optimise the parameter
● Accept that a parameter may be hacked or devalued in the eyes of others.

Depending on the likelihood and significance of occurrence, the highlighted hazards present a
variety of issues. Table 1 evaluates these risks based on the criteria to determine how serious
they are. The current study made use of a Likert scale.
These results were reached after discussion among the authors and were based on a thorough
evaluation of the literature (from reports and news stories) carried out during the study.
The red risk, which is expected to have the greatest impact on the project—that is, deviating
from scope, time, or cost of plan—is represented by duplicate and false identities, access to
remote areas, and the presence of numerous stakeholders with diverse interests. As a result,
these risks should be mitigated as quickly as possible.
Performance and Control
Aadhar expanded from its initial goal which was to
guarantee the safety and privacy of personal data related
to identity and authentication. To guarantee that the
Aadhaar Act is being followed in text and spirit by every
person and organisation. Making laws and guidelines
that are compliant with the Aadhaar Act in order to
implement its requirements. To provide UID but it
expanded its performance by returning revenue through
its involvement in the banking sector. As of FY’2020
over 88% of the total population was registered under
the aadhar scheme.

e-XYC GSI Total Recełved

Month YesINo

May’19 35,29.886 2,29.90,911 417.3,743 3 12,94,540

June'19 3.59.130 290 64,696 424,116

July’19 1.35,751658 114,161,694 22,992,724 15.37,3.3377

Sep'19 4,162,471 7164,76.573 14,515,028 9 1.54,072

Nov'19 24.615 2.45,833 48,681 3,19.129

Dec' 19 90.9.8832 12,751,031,911 24,587,054 16,11.8,7797

Jan'20 1.69,66.866 224,800,208 43,518,073 28.5.885,147

Feb'20 67.12,984 18.66,41,225 3,48,03.758 22,81,57.967

Mar'20 26.30,641 179,500,180 32,783,548 214,914,369

Apr’20 8,.30653 13,085,849 2,504,970 16,421,472

May'20 3,189,656 73,276,809 13,763,964 9 2130,428

june’20 134,734 384,126 93,395 6,121,256

July'20 3,797,221 151,979,510 2,80.3.8812 1 38116,543

Aug '20 3,489,996 148,395,334 27,339,359 17,92.24,690

Sep'20 5,317,453 182,607,547 33,826,500 221,751,499

Ocť20 1,905,149 14,342,118 4,724,562 30,972,128

Nov'20 942,504 12,860,534 2,484,547 16,287,585

Dec'20 12,376,577 263,304,593 49,622,611 32 3,03,781

Jan'21 808,723 12,648,085 2,422,225 15,879,033

Feb'21 38,623,070 111,898,687 27,093,916 177,615,673

 Mar'21 2,13.74,752 45.3.333,941 87,337,565 572,546,257

Grand Total 149,843,569 2,39,09,38,258 45,7340,729 2,998,122,556

*Month-wise collection for aadhar authentication transaction charges as of 31-03-2021(INR)

Banking sector and Aadhar

One in seven Indians lack access to credit, and nearly one in three lack access to a bank
account. The eastern and north-eastern regions of the nation would have substantially worse
ratios. The decisions these people must make while being financially excluded or marginally
included should be a key factor in the ongoing discussion on linking Aadhaar to bank
accounts. In the past ten years, a sizable number of people from the lower socio-economic
strata of society have become financially included. The Reserve Bank of India set guidelines
for establishing business correspondents (BCs) in 2006 to guarantee that banking services
were accessible and reasonably priced.
A business that serves as a bank's business correspondent selects representatives to manage
the brick-and-mortar client touch points. These agents quickly switched to the
Aadhaar-enabled payment system (AEPS) after being first established using a
biometric-based authentication system run by individual banks to provide a network for the
delivery of banking services in remote locations. A low-cost business is run by an agent that
offers products like microinsurance and the Atal Pension Yojana, as well as services for
opening "small" savings accounts and for depositing and withdrawing money.
These accounts also serve as a conduit for direct benefit transfers from the federal and state
governments. The consumer transacts by utilising an identity card that contains information
about her bank account and a fingerprint reader in place of filling out forms and using wet
signatures. In FY 2016–17, 646,000 agents completed 1,159 million transactions totaling
Rs2.65 trillion, according to the RBI Annual Report. A substantial number of underprivileged
Indians have had their first ever interactions with formal banking systems thanks to the
accessibility of tiny savings accounts in remote locations. The initiative has substantially
benefited from a strong biometric-based verification system that offers secure access to their
bank account.
Additionally, authentication may rely on a signature, a smart card, a PIN, or a combination of
any two of these. Due to poor literacy rates and a lack of expertise using smart cards and PIN
numbers, any authentication method other than biometric would be inferior and impracticable
for this particular market. Anecdotal data suggests that villages are familiar with specific PIN
digits. An integrated database and authentication system, like Aadhaar, is preferable to a
scattered one where each bank creates and manages its own client biometric database. It takes
a lengthy time and money to gather a customer's biometric data.
Moving one's account across banks is difficult due to the high entry costs involved with a
distributed system. A new financial services provider can quickly connect and begin offering
services thanks to centralised systems like AEPS. An extensive network of agents connected
to various banks and operating on AEPS would broaden the customer's selection, boost
competition, and enhance customer service. Such a customer would be on an equal footing
with those who access the current network of ATMs using a card and PIN for authentication
if they had the flexibility to use the branch, agent, or biometric ATM to access their bank
account. The degree of access to the banking network would no longer be determined by the
authentication system chosen.

*Aadhar fueled positive eKYC trend

Roadmap to execution and implementation

The UIDAI was established on 28 January 2009 after the Planning commission issued a
national notice. After UIDAI came into existence in 2009, a yearly budget has been set aside
for the working of the project by the respective governments. Up to August 2014, the total
spending by the union stood at 49.06 billion INR on the Aadhaar project. In the financial year
2014–15, 20.00 billion INR was set aside to enroll the remaining population (NDTV Profit,
11th July 2014). In the year 2012–2013, UIDAI issued 0.291 billion Aadhaar numbers
averaging a pace of 24 million individuals per month.

On 23 June Nandan Nilekani, Infosys co-founder was

appointed as the head of the project. He was given the
newly created position of Chairman of the UIDAI,
Equivalent to a cabinet minister in the hierarchy. With
the logo unveiled around 2010 In May Nilekani
announced backing as a head of an organization for
legislation to protect the sensitive data held by the
UIDAI in regards to the concerns regarding violations
of privacy floating around at that time.

The first enrolment was completed in the name of

Ranjana Sonawane a resident of Tembhli village in the
Nandurbar district of Maharashtra on the 29th of
September, 2010.

At first, the initiation was tasked to LIC and SBI of India and limited to 20 states. Later 15
agencies were announced to provide manpower and kick-start the enrolment process, this list
gradually increased to 220. These agencies were handed responsibilities for training and the
initial phase of the enrolment process. This included registering basic user data like names,
and D.O.B. to biometrics like retinal scans and fingerprints.

A basic yet secure UID database was established to secure and build an infrastructure for data
handling including everything from basic information to individual biometrics.

This included a UIDAI data center located at the Industrial Model Township (IMT), Manesar,
which was inaugurated by the then Chief minister of Haryana Bhupinder Singh Hooda on 7
January 2013. Aadhaar data is kept in about 7,000 servers in Bengaluru and Manesar
providing easy access, updating, and registration facilities.

In 2012 Aadhar was utilized to curb leakages and corruption through a policy of
direct-transfer schemes introduced by UPA on 26th of November, 2012. The idea was to
directly transfer money to the beneficiaries via Aadhar identification and bank account
linkage to their respective Aadhar numbers. The project was introduced to an initial number
of 51 districts on the 1st of January 2013 and then expanded to all of India in the later stages.
To address the concerns over wrong inputs SMS verification was introduced to curb false and
malicious inputs around the time when the users stood around 440 million strong.

After the change of government, despite having resigned Nilekani convinced the NDA
government of the potential of such a project resulting in the PM announcing a strong intent
to retain the project and the possibility to link it with other identification documents issued by
the government. Matters were made more public with increased budget and marketing efforts.
By this time the project had already entered phase V.

Banking and digitization efforts

To offer an alternative to physical documents and by digitization policies and efforts of the
government, Digilocker services were launched across the country in March 2015 which
were directly linked to UIDAI and Aadhar numbers. Following the retinal scans, UIDAI
enlisted TATA consultancy services and Neurotechnology to update the data registration
process by introducing facial data recognition and registration technologies for quick
identification and to address any unique circumstances where the retinal scans proved
insufficient.

Two working groups were established by the RBI on MicroATM standards and Central
Infrastructure & Connectivity for Aadhaar-based financial inclusion transactions. These
groups' members represented the RBI, NPCI, Institute for Development and Research in
Banking Technology, Unique Identification Authority of India, and some special invitees
from banks and research institutions.

Aadhar was further used to streamline fast-paced transaction networks and consumer habits
by linking Aadhar-based payment, models this included the remarkable UPI-based
micro-transaction networks and merchant payment systems.

This is formally known as AePS i.e. Aadhar-enabled payment system. AePS is a bank-led
model which allows online interoperable financial inclusion transactions through the
Business correspondent of any bank using Aadhaar authentication. APS allows you to do six
types of transactions.

AePS currently offers

· Cash Deposits

· Cash Withdrawals

· Balance Enquiry

· Mini Statement

· Aadhaar to Aadhaar Fund Transfer

· Authentication

· BHIM Aadhaar Pay

· eKYC

· Best Finger Detection

· Tokenization

· Aadhaar Seeding Status

Conclusion

The GOI undertook a very ambitious development initiative with the deployment of UID.
The main objective has been to give all national citizens personal identification cards. The
project has already completed its entire scope (although though the number of inhabitants
enrolled is on schedule, the advantages of various services have not yet been connected).
Since the public is worried about their privacy and the dependability of biometrics, it has not
received much support. Additionally, it has failed to use qualified resources, ensure effective
oversight, reach a sizable portion of the population, and resulting in the passage of time. The
advantages of the projects, however, obviously exceed the drawbacks. In order to secure the
project's success, which is urgently needed, all stakeholders should work together. The most
crucial factor for projects with a limited timeline was scope. Duplicate and false identities,
access to remote places, and the existence of numerous stakeholders have all been noted as
three main challenges that could have an impact on the project. The enrollment phase and the
scheme connecting phase of the UID initiative both need to be strengthened. The project has
expanded from a UID scheme to a financial aid and versatile yet universal identification
ecosystem. Currently Aadhar has established itself as a major aspect of remote banking and
quick merchant payment systems.
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Reference
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