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Need for multiple Aadhaar and Mobile number linkage to bank account - Cashless Economy in India

Most of the lower or middle income group families in India has only one member earning for the family, but almost everyone in the family has a role to spend for various expenses. This case is more relevant for migrant worker’s family. Housewife need to pay for groceries, milk, etc., other dependants (elders, teens) may need to pay at vegetable shops, saloon, stationaries and various payment needs at school, etc.

Direct access to funds from bank account for cashless payments through digital wallet requires mobile as one factor of authentication, so restricts access only to the account holder who also holds the mobile linked to the bank account. Be it UPI or AEPS based payment, the payment initiation is restricted only to the account holder. So, it mandates the need to have separate bank account for every individual and movement of funds from the account of the earning individual in the family to the bank accounts of other family members, so that they can also make cashless payments. Definitely, it may not be affordable to have smart phone to every individual in the middle class or lower income group families, but Rupay card is an open option if the family member holds a bank account.

Maintaining bank account for every individual in the family is possible but movement of funds among the bank accounts will leave fragmented balances and often will require re-accumulation of balances to make certain payments. RBI and NPCI may consider to link more than one Mobile number, Aadhaar number to a single bank account so that family members can have access to funds in the earning member’s bank account to lead India to Cashless economy. Optionally, banks may allow creation of sub accounts to a primary account or creation of virtual accounts to primary account so as to enable linking family member’s mobile number and aadhaar number to sub-account or virtual account.

 

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Comments: (5)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 15 December, 2016, 18:04Be the first to give this comment the thumbs up 0 likes

I had a torrid time linking just one Aadhaar # to a bank account.

Linking Aadhaar Number To Bank Account

Good luck linking multiple #s!

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 16 December, 2016, 17:58Be the first to give this comment the thumbs up 0 likes

Most Banks offer HUF account which can address such situations.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 17 December, 2016, 11:27Be the first to give this comment the thumbs up 0 likes

@HiteshThakkar:

Brilliant one. I've had countless accounts with many banks in India over the years and I never knew of this HUF type of account. Yet another reminder that banks can learn a few things from tech marketing, which creates buzz today for features that will be launched next year!

Any idea if HUF is available for non-Hindu families, who also can obviously have the same need?

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 17 December, 2016, 12:141 like 1 like

@Ketharaman, HUF is defined as Parents, Childs all opening individual accounts in the bank and than, one of the member becomes Karta and authorises all other accounts to come under single HUF ( better word will be Unified Family account). Each gets debit cards, cheque books , net banking access etc but Karta decides how all this accounts can be operated. Condition is all accounts need to be from same bank :)

The above modalities can be applicable to any savings account so there is no caste barrier for HUF account. I will check with my bankers friends for more details as HUF is usually used for Taxation to save taxes.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 17 December, 2016, 18:59Be the first to give this comment the thumbs up 0 likes

@HiteshThakkar: TY for your reply. Look forward to knowing more...