The big game changers in Union Budget 2016-17
Making Aadhaar statutory, digital depository for academic certificates, and retail participation in government bonds are among the big announcements made in Union budget 2016-17
New Delhi: I will pick out three announcements that I think are big.
First, making Aadhaar statutory. A mandatory Aadhaar will help set an industry standard in basic KYC (know your customer). At one end, it will reduce the leakages in the benefit system, and at the other, it will make the on-boarding of financial products easier. It will also help in mobile to mobile transaction of money, reducing the need for cash.
Two, extending the efficiency released by moving to a depository system in the stock market, the government has announced the setting up of a digital depository for school leaving certificates, college degrees, academic awards and mark sheets. Imagine not having to stress over lost degrees or doing the rounds of your old college to get a duplicate. For this too, an Aadhaar-backed authentication is essential.
Three, the Reserve Bank of India (RBI) will facilitate retail participation in government bonds–I hope they announce a big PM Bachat Yojna that makes retail participation in government securities possible on tap. Imagine a world where payments banks, stock exchanges and banks are able to reach government bonds to households directly. Government gets household money directly, households get a better deal than the 4% bank deposits rate or the 0.5-4% insurance return.
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