Don’t open OTP accounts: Experts

Over two years ago, bank unions had opposed the issue of payment bank licences. They had raised the same issue that customers are complaining about now.

M.S. Kumar, general secretary of the Bank Employees’ Federation, said that mobile operators registered for payment banking must not open accounts of customers without KYC. “Even though the accounts are inactive, with no transactions, it is against RBI’s guidelines. Without KYC, accounts should not be opened only on

the basis of One-Time Password (OTP),” he said.

Private cyber crime investigator Sandeep Mudalkar said that if the allegations of misusing the Aadhaar OTP are true, the mobile companies would be committing a cyber crime.

“Opening such accounts is almost a crime as it can lead to the misuse of accounts in cases where mobile numbers have been changed by the actual users. Cyber criminals may use inactive mobile numbers by obtaining it from mobile operators and can use the pre-activated M-wallet apps for illegal fund transfers.

“To avoid such crimes, the department of telecommunications restricted pre-activated SIM cards. Mobile operators must issue SIM cards only after obtaining KYC from customers. Similar rules must be imposed for opening accounts with payment banks,” he said.