UIDAI suspends Airtel, Airtel Payments Bank's e-KYC licence over Aadhaar misuse

[LTE4G 195]

May be this is the reason why porting to Airtel is taking more time.

UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using eKYC process as well as e-KYC of payments 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'. UIDAI also took strong objection to allegations that such payments bank accounts are being linked to receive LPG subsidy.

UIDAI, in an interim order, "suspended e-KYC licence key of Bharti Airtel Ltd and Airtel Payment Bank Ltd with immediate effect," sources with direct knowledge of the development.

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.

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.

https://economictimes.indiatimes.com/news/politics-and-nation/uidai-suspends-airtel-airtel-payments-banks-e-kyc-licence-over-aadhaar-misuse/articleshow/62096832.cms

https://timesofindia.indiatimes.com/business/india-business/uidai-temporarily-bars-airtel-from-conducting-aadhaar-linked-e-kyc-verification/articleshow/62096727.cms

 

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Latest update : 

As much as Rs 167 crore was deposited by 31.21 lakh customers in their Airtel Payments Bank accounts which were activated without their "informed consent", leading to suspension of Aadhaar-linked KYC verification of Bharti Airtel and Airtel Payments Bank.

https://m.timesofindia.com/business/india-business/rs-167cr-deposited-in-airtel-bank-without-consent-of-31l-users/amp_articleshow/62111310.cms

[commonman 228]

The fact that Airtel opened Payment Bank accounts without consent is wrong and needs to be dealt with strongly.

However, the credit of LPG subsidy to such account is not the handiwork of Airtel. It is a basic flaw in the system of LPG subsidy credit for which the concerned agencies/UIDAI themselves are responsible. The LPG subsidy gets credited to the last bank account that has been linked with Adhaar, irrespective of whatever bank account a customer has opted to receive subsidy given in his written application. This has been faced and reported by many. e.g. If a customer has an account in SBI and linked it to Adhaar and then given a written application to receive subsidy in that account, the subsidy is expected to be credited to that account only. But if 3 months later, he linked his second account (say with PNB) with adhaar then the subsidy would start getting credited to PNB instead of SBI, without the consent of the customer and even without any intimation to the customer. Now further 3 months later, if he opens an account in ICICI with the same Adhaar, the subsidy would start getting credited to ICICI, again without his consent and without any intimation. This is a known issue and people have raised complaints against it but UIDAI has done nothing on this. So it is the concerned agencies and UIDAI who are responsible for the credit of the Rs.167 Cr to Airtel payments bank.

Edited December 18, 2017 by commonman

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1 minute ago, commonman said:

The fact that Airtel opened Payment Bank accounts without consent is wrong and needs to be dealt with strongly.

However, the credit of LPG subsidy to such account is not the handiwork of Airtel. It is a basic flaw in the system of LPG subsidy credit for which the concerned agencies/UIDAI themselves are responsible. The LPG subsidy gets credited to the last bank account that has been linked with Adhaar, irrespective of whatever bank account a customer has opted to receive subsidy given in his written application. This has been faced and reported by many. e.g. If a customer has an account in SBI and linked it to Adhaar and then given a written application to receive subsidy in that account, the subsidy is expected to be credited to that account only. But if 3 months later, he linked his second account (say with PNB) with adhaar then the subsidy would start getting credited to PNB instead of SBI, without the consent of the customer and even without any intimation to the customer. Now further 3 months later, if he opens an account in ICICI with the same Adhaar, the subsidy would start getting credited to ICICI, again without his consent and without any intimation. This is a known issue and people have raised complaints against it but UIDAI has done nothing on this. So it is the concerned agencies and UIDAI who are responsible for the credit of the Rs.167 Cr to Airtel payments bank.

Yes you are absolutely right - in fact linking bank and linking subsidy should have been provisioned separately by UIDAI. It should be left to the consumer to decide in which bank he wants subsidy to get deposited irrespective of the number & chronological order of the Banks linking with UIDAI. This problem should be addressed as soon as possible since earlier we were suppose to link only the bank in which we want subsidy but unfortunately without giving enough time the government came up with the plan of linking all accounts with Aadhaar causing much confusion and dismay.

[me_saket 73]

I know airtel is at fault , and doing unethical practise.

But TRAI/UIDAI and petroleum departement get suggendly wake up.

Problem started when people used to get LPG subsidy transfererred to Airtel payment bank, which as per UIDAI and RBI is latest Bank account with FULL KYC with aadhar number.

here 3 aspect are there
1) why does subsidy transfer to Default latest bank account
2) why cant person choose bank ,where he want subsidy
3) why does UIDAI/RBI choose PAYMENT bank to transfer subsidy instead of regular FULL Bank, thus ignoring airtel and other payment bank and transfer to latest FULL BANK with KYC?

parallel Govt running two scheme of GIVE-UP sibsidy and DIGITAL India and FINANCIAL Inclusion.

does all are not conflicting each other interest.
India needs better management of Aadhar USAGE and its Security .

From birds eye view, i can simply tell that, please allow user to select LPG subsidy to be transferedd to bank of his choice.

and secondly improve process of EXPLICIT consent for activating/creating ANY(airtel) payment bank account.