5.

Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.

5. Error-ridden Aadhaar Payment Bridge System: The pressure to link bank accounts
with Aadhaar, enforce ever-stricter and ever-changing Know Your Customer, or KYC,
or e-verification norms and use the Aadhaar Payment Bridge System for direct
benefit transfer payments, has created huge confusion in welfare payments. Delayed
payments, rejected payments, diverted payments and blocked payments are just four
categories of payment problems that have plagued welfare schemes including Nrega,
social security pensions and maternity benefits. To illustrate, Niti Aayog recently
reported that 28% of maternity benefit payments under the Pradhan Mantri Matri
Vandana Yojana went to an account different from that provided by the beneficiary.
It is surprising that the Reserve Bank of India allows these problematic payment
systems.

Safeguards: (1) A comprehensive review of the Aadhaar Payment Bridge System and
direct benefit transfer systems should be conducted by an expert group constituted
under the auspices of a credible institution independent from the government, such
as the Parliamentary Standing Committee on Communications and Information
Technology. (2) The Reserve Bank of India and National Payments Corporation of
India should monitor all types of payment problems and place detailed monthly
reports in the public domain. (3) Meanwhile, the government should stop insisting
on fast-track migration from “account-based payments” to “Aadhaar-based payments”
in the direct benefit transfer system and consider a freeze on further onboarding
to Aadhaar Payment Bridge System.