Saral Money a step towards cash transfers, UID & financial inclusion

Saral Money—a pre-paid card launched on the Visa and Aadhaar platforms yesterday—is an easy way for the unbanked to access their welfare benefits flowing through cash transfers. And since the only requirement for this continuous card is an Aadhaar, it increases the incentive for Indians to obtain this number, reports ET.

How it works

Step 1: A migrant worker in Delhi walks into one of the 100-odd issuing outlets—bank branches, kirana stores, mobile vendors, etc—with his Aadhaar number

Step 2: Once his biometrics match, he is handed a prepaid card of a bank

Step 3: He can load cash, or receive cash transfers from government and payments from individuals who have an Aadhaar. Company transfers not allowed

Step 4: He uses it like a debit card: for withdrawals from ATMs and BCs, payments and to transfer money

Is this a savings account?

It is to the extent a person can receive money and make withdrawals and payments. It isn’t to the extent that the card balance does not earn interest and there’s no cheque-book facility.

Where is it on offer?

To start with, the NCR. Rest of the country, in stages, by end-2014.

Who benefits?

Individuals: the unbanked can receive cash transfers and this card could be a stepping stone to a bank account

Government: Bolsters the case for cash transfers on schedule and furthers fi nancial inclusion

UIDAI: It nudges people to get its Aadhaar