New Delhi may pay for biometric readers which will be attached to smartphones to validate welfare transactions.
The biometric POS solutions would be used for so-called ration shops or fair price, which distribute food to the needy.
Aruna Sundararajan, secretary, ministry of electronics and IT told the Economic Times this week that a proposal for the reimbursement of cost of biometric readers to merchants by the Unique Identification Authority of India (UIDAI) was being considered. The UIDAI is the nodal body responsible for running the Aadhaar programme.
“We are also working with RBI and NPCI to bring out the common app, which anybody, any merchant, can plug into. It will be interoperable.“
She added that the government is also trying to see how merchant charges can be done away with or are minimal in the system.
The government has also soft launched a scheme under which any merchant in the country who is accepting payments through Aadhaar will get a 0.5% rebate for each transaction capped at Rs 10. This has been done in association with the National Bank for Agriculture and Rural Development (NABARD).