NADRA as deposit taker

Speaking in an interview with a news agency, the Chairman of National Database and Registration Authority (NADRA), Brigadier Saleem Moeen (Retd.), revealed that the Computerised National Identity Card (CNIC) was all set to serve as a "debit card" also along with being the main source of identification.
The establishment of kiosks meant to facilitate the payment of utility bills is particularly important in this connection. NADRA plans to spread the network of such kiosks in every nook and corner of the country to provide the citizens facilities at their doorsteps. In Punjab alone, 140 kiosks would be established during the current year.
There are also plans to establish kiosk machines at all the utility stores in the country where people would be able to make payment for groceries purchased through CNICs, which would turn into a "debit card" in phases. The NADRA kiosks, according to Saleem Moeen, were also serving as banker for people where they could deposit their earnings with the help of CNICs. He was, however, careful to add that this process was not disturbing the existing banking system. Upto now, an amount of Rs 11 million was deposited by people in these kiosks all over the country.
The NADRA chairman also dwelt at length on the gender-wise distribution regarding the issuance of CNICs. The women, especially in NWFP, were reluctant to get their CNICs for various reasons. The problem may be gauged from the fact that only two percent of female population was in possession of CNICs as against 98 percent of male population in this province.
The problem was less acute in Punjab where 54 percent of female population possessed CNICs as against 84 percent of male population. Females living in Southern Punjab were somewhat reluctant to get their identity cards. In order to overcome this problem, NADRA had decided to introduce "Women's Day" to facilitate women to get CNICs and mobile teams comprising women workers were being arranged in this connection. NADRA was also making all out efforts to facilitate expatriates in foreign countries with all the resources at its command.
NADRA, in our view, is doing a commendable job in establishing the true identity of Pakistanis. Previously, the counterfeiting of identity cards was rampant and almost anybody, with the right connections or a fat purse, could get the NIC from various offices spread throughout the country and pose as a Pakistani in various countries of the world. There are no such complaints now with the result that the new CNICs have become a reliable source of identification almost anywhere.
It is also good that NADRA is trying to reach the womenfolk in conservative areas of the country with a view to expanding its coverage. However, its intention to extend its services in non-traditional areas is not understandable. The collection of utility bills is the responsibility of utility companies, which they are trying to fulfil through a vast network of bank branches and post offices.
They could open their own kiosks if they so desire. NADRA's direct intervention in this area could divert its attention from its core function and affect its overall efficiency. As things are, it is not easy to provide the necessary services to a huge population of 150 million people and keep an up-to-date record of births and deaths in the country. An area where NADRA could render a useful service is the preparation of population census in the country with a shorter duration and which is more credible.
Also, we fail to understand how NADRA could undertake the business of deposit taking without getting a proper licence from the State Bank which would entail a long list of conditions including the raising of paid-up capital and subjecting itself to the regulatory and supervisory mechanism of the central bank. Taking all these factors in view, we would advise NADRA to concentrate on its core function, which by no means is easy, rather than extend its wings in areas where its expertise is limited or not very much needed. We hope that the State Bank of Pakistan has taken cognisance of NADRA becoming a deposit taker without licence and will take necessary action that this bizarre situation warrants.