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UIDAI suspends Airtel, Airtel Payments and Banks e-KYC License
What appears to be the most stringent action taken in its short history, the unique identification authority of India .has temporarily barred Bharti Airtel and its payment bank services from using biometric identification to verify users. This action follows after various complaints against Airtel for alleged use of Aadhar details to establish e-KYC (Know your customer) credentials of users and the fact that bank accounts on Airtel Payment Bank were opened without customer’s consent ,further it has also been alleged that as much as Rs 167 crores have been deposited by 31.21 lakh customers in their Airtel payment Bank Accounts which were activated without their ‘informed consent’. Furthermore, it has also been alleged that company has redirected LPG subsidies to these accounts. This malpractice came into light after UIDAI investigated a complaint from an individual regarding the fact that Bharti opened in his name a payment bank account without his consent and further linked it for LPG subsidy to which UIDAI passed an interim order suspending airtel, airtel payments and bank e-KYC license. The order provides that for an interim period Airtel would not be able to carry out ‘electronic verification’ or link mobile SIM’s of its customers with their 12-digit biometric national ID Aadhar through efficient and paperless e-KYC also Bharti Airtel will not be able to open a new account with Aadhar e-KYC, though it may resort to other methods for opening accounts.
Both Bharti Airtel and Airtel Payments Bank had entered into an agreement with UIDAI in February 2015 and September 2016 respectively for purposes of availing authentication services provided by authority and were thus appointed as Authentication User Agency (AUA). Following various complaints by customers UIDAI has suspended the e-KYC license key with an interim order which provides that Airtel has made “false statements” to deceive customers , has worked in blatant violations of various provisions of the Aadhar Act,2016. The Airtel spokesperson has reportedly confirmed receipt of the interim order from UIDAI regarding their temporary suspension of Aadhar linked e-KYC services till satisfaction of compliance with certain processes. UIDAI has also ordered ‘Price water house Cooper’ to conduct an audit of Bharti Airtel to ensure compliance with UIDAI regulations and Aadhar Act , 2016.
