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What is Aadhaar? Uses & Benefits of Aadhaar card In India.

Aadhaar Number: Importance, Uses & Benefits of having an Aadhaar Card


Brief Introduction of UID (Aadhaar Projects)

Government of India with an objective to establish a Unique Identification method and issuance of a robust & unique identity to each and every residents of India launched UID (Unique Identification) or Aadhaar Projects.

Like in developed countries where social security number serves as a unique identity number of all its resident or citizens living there.

Similarly government of India with an attempt to give a unique identity number to its entire population or residents initiated UID or Aadhaar project.

What Are the Main Objectives of Aadhaar projects?

The objective of the project is to collect biometric (photograph, iris-scan, fingerprints) and demographic data of residents (residence address information), store them in a centralized database, and issue a 12-digit unique identity number called Aadhaar to each resident.

Authority Responsible for UID Projects

The Unique Identification Authority of India (UIDAI) is a central government agency was set up by the Government of India on 28 January 2009 as an attached office of the erstwhile Planning Commission.

The UIDAI has been assigned with the following responsibilities:

  • To assign a 12-digit unique identification (UID) number (termed as Aadhaar) to all the residents of India.
  • Lay down plan and policies to implement UID scheme,
  • To own and operate the UID database and be responsible for its updation and maintenance on an ongoing basis.

UID or Aadhaar project is considered as the world’s largest national identification number project.

By going through introduction of UID or Aadhaar Projects, we have fare enough ideas about Aadhaar or UID projects, with what objectives in mind it was launched, who is regulatory authority responsible to manage it etc., now we should move ahead.

What is an Aadhaar Card?

Aadhaar is a 12 (twelve) digit individual identification number issued by the Unique Identification Authority of India (UIDAI) on behalf of the Government of India.

Aadhaar is meant for individuals of any age (including children and infants) for the purpose of establishing identities.

This unique Aadhaar number will serve as a proof of identity and address, anywhere in India.

Details on Aadhaar Card

The Aadhaar card issued by UIDAI contains the basic details of the person. These details include:

  • Name of the person
  • The person’s date of birth (DOB)
  • The person’s gender
  • A photograph of the person
  • The 12 digit Aadhaar number
  • The enrolment number (EID)
  • A barcode that represents the Aadhaar number itself
  • The address of the person, as per the records.

Who can enroll to obtain an Aadhaar?

Any individual, irrespective of age and gender, who is a resident in India can enroll for Aadhaar, subject to verification process laid down by the UIDAI,

Aadhaar is meant for individuals of any age (including children or infant) for the purpose of establishing identities.

Note: Non-resident Indian is eligible to apply for an Aadhaar card.

Even Foreigners who are residing in India can also apply for Aadhaar as Aadhar is not a proof of citizenship of India.

Is obtaining an Aadhaar Card mandatory?

Aadhaar is voluntary based and any individual who is interested in having Aadhaar number for himself /herself can enroll to get Aadhaar number.

What is the Validity of Aadhaar?

Aadhaar number will be valid for full life of an individual and it does not require any renewal from time to time. Thus, Aadhaar number is a unique identity to an individual and will remain valid for life.

Validity of e-Aadhaar?

Aadhaar letter received via India Post and e-Aadhaar downloaded from UIDAI website are equally valid.

Uses of Aadhaar Card

Aadhaar number is like a foundation, it is the base on which any delivery system can be built. Aadhaar can be used in numerous application systems which need to establish the identity of a resident or person.

Following are the few uses and benefits of having an Aadhaar Card:

Identity & Address Proof:

Aadhaar is valid all over India as a proof of identity and proof of address.

Direct Benefit Transfer of LPG Subsidy:

People having an Aadhaar card can use it to avail a subsidy on gas cylinders, under PAHAL DBTL Scheme.

To avail this benefit it, you would have to have twelve digit Aadhaar number linked to the 17 digit LPG consumer number. Your Aadhaar number should also be linked to your bank account.

Phone Connections:

When it comes to getting a new phone connection or mobile SIM connection, Aadhaar card can be used as a valid id and address proof.

Jan Dhan Yojana:

Aadhaar card considered as the one & only document which is sufficient to open a Bank account under Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme.

Though, bank account can be opened under PMJDY scheme by submitting other documents as well, but in case of Aadhaar, you don’t need to submit any other document.

 Opening a Bank Account:

Aadhaar card is considered as a valid address proof document now. Aadhaar card letter provided by UIDAI is accepted by bank as a valid address proof in opening a bank account.

Pension Disbursement:

Central govt. has made Aadhaar card compulsory for Central Pensioners. Central pensioner required to link their bank account with Aadhaar to get the pension disbursed.

Select State pensioner is also required to register their Aadhaar number to receive pension.

Provident Fund Payment:

Central government has also made it mandatory for employees to link their Aadhaar number with the EPFO (Employee Provident Fund Organization).

Now, employees have to register their Aadhaar number with EPFO to receive any provident fund money.


Govt. of india launched a digital locker systems (DigiLocker) services in February 2015 to provide every resident a secure dedicated personal electronic space for storing the documents.

DigiLocker account gives facility to link your Aadhaar number. You can voluntarily link your Aadhaar number (issued by UIDAI) to avail additional services.

Jeevan Pramaan Scheme/Digital Life Certificate:

Jeevan Pramaan – is an online Aadhaar based ‘Digital Life Certificate’ for Pensioners. This scheme was launched by Prime Minister Narendra Modi in November 2014.

This scheme will enable the pensioner to provide the proof of his being alive digitally to authorities for continuity of pension every year instead of physically present before pension disbursement agency.


Students who are entitled to receive a scholarship from the government will get the amount credited to the Aadhaar linked bank account.

In due course need for linking Aadhaar to the bank account for receiving scholarships would be mandatory.

Passport Application:

Having an Aadhaar card will also be beneficial for a New/re-issue of Passport application. Person having a valid Aadhaar number can get his or her passport in 10 days, now.

It’s really a big relief for passport applicant. In case of new passport, Aadhaar number is compulsory now.

In addition to the above mentioned uses, Aadhaar number will help you provide access to various other services, government subsides, and other Govt and Non-Govt services/schemes in due course.

About Shubham Anand

Shubham Anand, the founder of TaxWinner.in, is a Chartered accountant, law graduate and personal finance & technology enthusiast. He loves writing about taxes, personal finance, tax planning, the latest technology, and much more. With a passion for technology and the intricacies of personal finance, he believes that financial literacy is the ultimate life hack.

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