Assertive ‘Aadhaar’ and Financial Inclusion

Electronic delivery for cash transfers has re-engineered governance mechanism and the potential for efficient social protection policy for the world's poor. Aadhaar of India directly transfers money in poor's savings linked bank account, bringing forward a new relationship between social protection policy and financial inclusion. Aadhaar, based on asset theory and its vision to reduce poverty in India through cash transfer provides incentive to recipient to save for financial well being and to invest in human capital development. The aim in this paper is to explore if Financial Literacy would help in the effective implementation of Aadhaar and help poor move away from poverty.