Top 10 Advantages and Disadvantages of Aadhaar Card (UIDAI)

Every nation revolves around a centralized database that keeps the nation in check. The need for unique identification that can regard the citizens under the binding of national demographic has been felt since long. As such, India offered an initiative of their own in form of Aadhaar Card or Unique Identification Authority of India (UIDAI).

We’ll look to deal with the concept of Aadhaar Card in our entry today and dish out their advantages and disadvantages along with it. Read along as we present our piece.

What’s Aadhaar Card?

Aadhaar Card is a Unique Identification that collects biometric data of the residents. It’s helmed by Unique Identification Authority of India (UIDAI), a central agency of Indian Government. Aadhaar Card uses a 12-digit number that’s unique to every user.

Aadhaar Card

For the record, Aadhaar Card is considered as the largest nation based identification number project in the world.

Let’s move ahead with the advantages and disadvantages of the Aadhaar Card down below.  We’ll start off with the advantages at first.

Also Read:  How To Locate/Find Nearest Aadhaar Enrolment Centre To Me

Advantages/Merits/Benefits of Aadhaar Card

  • Jhan Dhan Yojana – Aadhaar Card is used as the major document of proof when opening a bank account under the Pradhan Mantri Jhan Dhan Yojana in the nation. The bank account comes with great set of benefits like free zero balance saving account, RuPay Card, accident insurance and more.
  • Direct Benefit Transfer – Aadhar Card linked bank account will get their set of LPG Subsidy directly accredited in the bank account. All you need is to link Aadhaar Number to the 17-digit LPG consumer identification under the PAHAL Scheme.
  • Monthly Pension and Provident Fund – As per the new changes in rule, a person needs to link their Aadhaar Card to their respective pension account and provident fund. A person who has registered their Aadhaar Card as per the rule will have the amount credited to their bank account.
  • Avail New Bank account – Straying away from the old rule that requires submission of multiple documents for the opening of bank account, Aadhaar Card has been a timely intervention. Aadhaar Card is now accepted by the banks as part of the valid id proof for opening a bank account. It also acts as the address proof of the applicant and validates their credentials. No more requirements for the baggage of documents when opening a bank account now.
  • Passport and Voter ID – Aadhaar Card will relieve you of the lengthy procedure while obtaining Passport. An applicant who uses Aadhaar Card as part of the procedure can get the Passport in just 10 days. Furthermore, a change in rules and laws have regarded Aadhaar Card as a compulsory document for obtaining Passport.
  • Starting from the 9th of March, 2015, every Voter ID will be linked to Aadhaar Card in a bid to eliminate the bogus voters. That being said, a legal voter will get absolute right to use his powers granted by the law. It’s only for those illegal holders of multiple Voter ID that will be hampered.

However, everything’s not all shiny and bright. There are a few disadvantages associated with the Aadhaar Card as of now. We’ll now look onto the other side of the coin of Aadhaar Card with our entry down below.

Disadvantages/Demerits of Aadhaar Card

  • Foreign Handling of the data – As Aadhaar Project is being handled by private companies who won the round of auctions. The project is also set to entertain Foreign Companies in terms of research and development. Such a step might lead to data erosion to the foreign body which in the hindsight will compromise the privacy of the individuals of India.
  • Problems Arising due to Centralization – As the Unique Identification Scheme is governed by the supreme authority of the nation, there might arise problems pertaining to the centralization of it. The centralization of power will create different unorthodox issues for government and people as a whole. As such a mighty disadvantage lurking in for the Aadhaar based identification is the centralization of power attached to
  • Individual Information may be Compromised – Aadhaar based identification record the biometrics of a person with uniquely associated 12-digit numerical. It is also linked with the bank accounts and the voter ID credentials as we discussed up above in the advantages squadron. This bit of private individual information may be compromised if handled otherwise. This stands as a big risk going forward with the Aadhaar card.
  • Misuse in Banking Transactions – Aadhaar based identification will give way to a new banking transaction where Aadhaar Identification will be used in lieu of ATM, Debit or Credit Cards. This bit will help out to reach the financial transaction to a mass of people but cites in a few disadvantages too. Such identification can be used to forge the transaction and endureloss to many.
  • Uneasy nature of Usage – Although Aadhaar based identification will prove to be a hit, in the long run, the current trend says otherwise. In a mass of population where illiteracy and rural lifestyle are still burgeoning around, using Aadhaar card can be a tricky thing to be negotiated. Many still find using Aadhaar Card and its mirage of offerings as one of the bane rather than as a boon for the nation. Only when the population is able to cope with the usage of Aadhaar Card can that be named as successful enough. Until then, we could cite this as a disadvantage.

Aadhaar Card is a new face in the nation’s centralized identification scheme which has met with glowing reviews till date. The proposals that are laden for the growth of Aadhaar based identification is set to reach further heights. However, there remain a few disadvantages of it too which we dealt above. We bid adieu from the piece for now with a promise to come back with more the next time.


  1. SBS Singh
  2. Paras Arora