UIDAI suspends e-KYC licence of Airtel, Payments Bank
In its strongest action yet, the Unique Identification Authority of India (UIDAI) has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers and payments bank clients using the e-KYC process.
The action follows allegations of Bharti Airtel using the Aadhaar-based SIM verification process to open payments bank accounts of its subscribers without their ‘informed consent’. The UIDAI also took strong exception to allegations that such payments bank accounts are being linked to receive LPG subsidy.
The UIDAI, in an interim order, “suspended e-KYC licence key of Bharti Airtel and Airtel Payments Bank with immediate effect,” sources said. This essentially means Airtel would not be able to, in the interim, carry out ‘electronic verification’ or link mobile SIMs of its customers with their Aadhaar. Also, Airtel Payments Bank will not be able to open a new account with Aadhaar e-KYC. However, accounts can be opened through alternative methods, if available.
When contacted, an Airtel spokesperson said: “We have received an interim order from the UIDAI regarding the temporary suspension of Aadhaar-linked e-- KYC services till their satisfaction on certain processes relating to Airtel payment banks onboarding of customers. We are engaging with the authority and are hopeful of an early resolution. We are also undertaking to complete the said actions on priority and have commenced thorough checks of our process flows.”
“Being compliant to all guidelines is paramount to us. In the interim, any inconvenience to our customers is regretted,” the spokesperson added.
More than 2.3 million customers have reportedly received as many as ~47 crore in their Airtel bank accounts, which they did not know had been opened.
Sources said it was brought to the notice of the UIDAI that at the time of verification using Aadhaar e- KYC, Airtel retailers were also opening Airtel Payments Bank accounts, without the informed consent of the user. Government LPG subsidy was also getting transferred to these accounts, without their consent.
UIDAI observed that according to the agreement with the authority, Airtel and Airtel Bank are duty- bound and under obligation to ensure security and privacy of customers’ identity information.
Security and privacy of Aadhaar data is a highly sensitive matter and the Supreme Court is looking into its various aspects.
Suspending the ‘ e- KYC licence key’, UIDAI ordered PricewaterhouseCoopers to conduct an audit of Bharti Airtel and Airtel Payments Bank to ascertain if their systems and processes are in compliance with the Aadhaar Act.
UIDAI may consider revocation of suspension or decide further necessary action upon receipt of the report.
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 a fine of ~ 1 lakh per day and termination of authentication user agreements.