Airtel, its payments-bank's e-KYC license temporarily suspended over Aadhaar misuse
What's the story
Following allegations of Bharti Airtel "surreptitiously" using the Aadhaar-based e-KYC process to open accounts in Airtel Payments Bank without customers' consent, the UIDAI has -taking its strongest action yet- suspended Airtel's e-KYC license temporarily.
This means new and existing Airtel customers cannot use e-KYC, the Aadhaar-based online authentication process intended for SIM verification, to authenticate or link Aadhaar in a paperless manner.
Here's more!
Details
No paperless biometric authentication for now
Following UIDAI's latest move, customers of Airtel or its online payments bank wouldn't be able to use the e-KYC authentication process. For verification, they need to go to Airtel's store and physically submit the copies of Aadhaar and other identity proofs.
Even for the mandatory Aadhaar-SIM linking by 31 Ma'18 will now have to be carried through the physical process for Airtel customers.
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Inconvenience is regretted: Airtel
Sources said UIDAI, in an interim order, "suspended e-KYC license key of Bharti Airtel and Airtel Payment Bank Ltd with immediate effect." Meanwhile, Airtel's spokesperson said: "Being compliant to all guidelines is paramount to us. In the interim, any inconvenience to our customers is regretted."
Interim Order
Received UIDAI's order regarding temporary license suspension: Airtel
An Airtel spokesperson confirmed the receipt of UIDAI's interim order regarding the temporary suspension of Aadhaar-linked e-KYC services till the Aadhaar body's "satisfaction on certain processes relating to Airtel payment bank's onboarding of customers."
The spokesperson is hopeful of an early resolution, adding, "We are also undertaking to complete the said actions on priority and have commenced thorough checks of our process flows."
Information
Audit of Airtel, its payments bank by PwC
Suspending Airtel's e-KYC license key, UIDAI ordered an audit of Bharti Airtel and Airtel Payments Bank by PricewaterhouseCoopers to ascertain whether their systems and processes comply with the Aadhaar Act. After receiving this report, UIDAI may consider revoking the license suspension or taking further action.
LPG Subsidy
Airtel customers' Aadhaar linked to payments bank without consent
Airtel was earlier issued a show-cause notice by UIDAI as its staff carried out unauthorized Aadhaar linkage to the payments bank.
Such linkages came to light when the customers' LPG subsidy got transferred into Airtel Payments Bank accounts, which the customers didn't even sign up for.
LPG subsidies worth over Rs. 40cr were transferred to over 20-lakh Airtel Payments Bank accounts without customers' permission.
Violations
Violations of Aadhaar Act attract Rs. 1-lakh/day fine
Airtel and its payments bank's alleged actions violated various sections of the 2016 Aadhaar Act that mandates obtaining an individual's "explicit content" for using the information.
Violations are punishable, with Rs. 1 lakh fine per day along with termination of authentication user agreements.
Both Airtel and its payments bank were appointed as Authentication User Agencies by UIDAI for availing authentication services.