Financial inclusion efforts in the last six years have yielded disappointingly little. The BC model, despite its promise as a vital tool for financial inclusion and for G2P payments, has several drawbacks and its proposition for the unbanked poor is far from compelling. These deficiencies are now well understood and amongst other progressive steps undertaken, the Aadhaar platform from the UIDAI is increasingly recognised as a way of overcoming many of the barriers. This Note examines how UIDAI and Aadhaar platforms offer a solution to the many challenges that have undermined the BC model. It also brings out the lessons learned from select pilot programmes in a few districts that have received considerable attention (from media and others) for their innovative and outcome oriented approaches leveraging Aadhaar. Also outlined are challenges that would need to be surmounted, despite the potential and promise behind UIDAI platforms.

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