TIMESOFINDIA.COM | Updated: Dec 16, 2017, 19:00 IST
HIGHLIGHTS
- UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar linked e-KYC verification of SIM cards and bank clients
- Last month, UIDAI had reportedly ordered an investigation against Bharti Airtel for alleged violations of the Aadhaar Act
NEW DELHI: On Saturday,
UIDAI temporarily barred
Bharti Airtel and
Airtel Payments Bank from conducting Aadhaar linked e-KYC verification of
SIM cards and bank clients.The action follows allegations of Bharti
Airtel using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their 'informed consent'.
Last month, UIDAI had reportedly ordered an investigation against Bharti Airtel for alleged violations of the
Aadhaar Act and is threatening to slap a financial penalty for opening Airtel Payments Bank accounts of customers surreptitiously while carrying out Aadhaar verification of their mobile numbers.
More than 23 lakh customers have reportedly received as many as Rs 47 crore in their Airtel bank accounts, which they did not know had been opened.
"The lapses are serious in nature. Prima facie, it is a criminal breach of trust and contract, and there are violations of provisions of the Aadhaar Act," a source, who did not wish to be identified, had told TOI.
The report suggested that some customers had their cooking gas subsidies landed in their Airtel Payments Bank account, while they had linked the subsidies to their savings bank accounts. After the irregularity came to fore, UIDAI CEO Ajay Bhushan Pandey had said that the authority has received complaints of wrongdoing against "certain telecom companies" during the Aadhaar verification process. He however, had not identified any telecom operator.
UIDAI's move essentially means Airtel would not be able to, in the interim, carry out 'electronic-verification' or link mobile SIMs of its customers with their 12-digit biometric national ID Aadhaar though the efficient and paperless eKYC (or electronic Know Your Customer) process of UIDAI. Also, Airtel Payments Bank will not be able to open a new account with Aadhaar e-KYC. However, accounts can be opened through alternate methods, if available.
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The alleged actions of Airtel and Airtel Payments Bank were found to be in violation of different sections of the Aadhaar Act, 2016, which mandates obtaining explicit consent of the individual. Violations are liable to be punished with Rs 1 lakh per day fine and termination of authentication user agreements.
Sources said that the first notice was issued to Airtel on September 18, responding to which Airtel and Airtel Bank stated that they have amended their process and the opening of a bank account is completely de- linked from the process of re-verification of mobile connection. These replies were found to be unsatisfactory by UIDAI, which issued another notice on November 24, as UIDAI kept receiving similar complaints from customers.
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Why not cancel the "Bank license"
Mpraomokkapati
Furthermore, when UIDAI reviewed the Airtel mobile app, it found that when the app is opened, along with the welcome message a pre- ticked consent box is momentarily flashed on the screen which states "Upgrade or create my Airtel Payment Bank wallet using existing Airtel mobile KYC." This was found to reflect blatant disregard of Aadhaar Act and Regulations.
(With inputs from PTI)