In another push for Aadhaar and digital payment, Prime Minister Narendra Modi launched the Aadhaar Pay platform today, on the occasion of Ambedkar Jayanti.
Aadhar Pay will work through the BHIM app, which can be installed by the merchant along with a biometric scanner. Users can go to the merchant and make payment by providing their Aaadhar number and authenticating the payment through the scanner. However, before availing of the service, users will have to link the Aadhaar number to their bank account.
The government will not levy any charge on the customer or the merchant for transactions performed through Aadhaar Pay.
"It costs billions of rupees to print, manage and transport currency," the prime minister said at the launch at Nagpur. "If this money can be saved, so much good can be done for the poor of the country. If we move towards less-cash, there will be a positive change. Time is not far when we will have premises-less, paperless banking."
Modi also launched a cashback and referral initiative for the BHIM app to encourage more people to use the service. The government has reportedly invested ₹495 crores in the scheme.