UIDAI allows Airtel to resume verifying subscribers using Aadhaar, but with riders
The authority had barred the telecom firm from using Aadhaar after allegations that it was using the details to open bank accounts without users’ consent.
The Aadhaar authority on Thursday allowed Bharti Airtel to resume using the unique identification number to verify its telecom subscribers till January 10, but with stiff riders, PTI reported.
Earlier this month, the Unique Identification Authority of India temporarily barred Airtel and its payments bank service from using biometric identification to verify users, after allegations that it was using its customers’ Aadhaar details to open accounts on its payments bank service without their consent.
This became a problem because Aadhaar’s system is designed to send subsidies to the last bank account linked to the identification number. Lakhs of Airtel customers did not know that their subsidies, including LPG subsidies, were being deposited in these new accounts.
The UIDAI’s came to the decision on Thursday after Airtel credited Rs 138 crore of subsidy payments back into the original bank accounts of 55.63 lakh customers. The reprieve will allow Airtel subscribers to link their SIM cards with Aadhaar, the deadline for which is currently March 31, 2018.
UIDAI, however, said the Airtel Payments Bank eKYC licence will “remain suspended till final inquiry and audit report”, PTI quoted officials close to the development as saying.
The Aadhaar authority has asked the Reserve Bank of India, the Department of Telecom and audit firm PricewaterhouseCoopers India to conduct an audit of Bharti Airtel and its systems, PTI reported.
To prevent another such case, UIDAI on Tuesday said it was tightening the rules to map or link Aadhaar with a new bank account. The new rules make it necessary for a customer’s “explicitly informed consent” to link the number with a bank account.
Airtel Payments Bank MD resigns
Meanwhile, Airtel Payments Bank Managing Director and Chief Executive Officer Shashi Arora has resigned, PTI reported. “Shashi has decided to move on to pursue opportunities outside of Airtel,” the company said in a statement. “We wish Shashi the very best for his future endeavours.”
Arora became the managing director and CEO of Airtel Payments Bank on June 1, 2016.