Airtel banned from Aadhaar-eKYC based SIM verification

Bharti Airtel and Airtel Payments Banks have been temporarily banned from conducting Aadhaar-based SIM verification of Mobile customers using eKYC (ELectronic Know Your Customer) process and e-KYC of payments bank clients by Unique Identification Authority of India (UIDAI).

The action was taken after the allegations that Bharti Airtel is using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their "informed consent."

AsAirtel is on the interim ban, it won't be able to e-verify or link mobile SIMs with the Aadhaar ID through the eKYC process of UIDAI.

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Customers also won't be able open their new account in Airtel Payment Bank.

A spokesperson for Airtel said, "We can confirm that we have received an interim order from the UIDAI regarding 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 UIDAI also took strongobjection to the allegations that such payment bank accounts are being linked to receive LPG subsidy.

The Airtel and Airtel Banks are found be violating a different section of the Aadhaar Act 2016, which mandates explicit consent of the individuals.

According to the law, the violations could lead to a fine of one lakh per day and termination of authentication user agreements.

Airtel has been opening Airtel Payments Bank Account, without the consent of the user, as they link the SIMs to the Aadhaar card.

According to reports, more than 23 Lakh customers have their Airtel Payments Bank Account without any prior awareness.

UIDAI observed that as per agreement with the authority, Airtel and Airtel bank are under obligation to ensure security and privacy of a resident's identity information.

An audit has also been ordered to examine if the Airteland Airtel Payments Bank are in compliance with the Aadhaar Act. It will be conducted by PricewaterhouseCoopers.

According to the sources, when Airtel received the first notice it stated that they have amended the process and the opening of a bank account is delinked from the verification process.

Airtel also received a notice after the previous but even then the authority was receiving complaints about the unauthorised opening of Airtel Payments Bank accounts.

UIDAI also reviewed the Airtel Mobile app in which they saw that along with the welcome message, a pre-ticked consent box appears for a moment which states, "Upgrade or createmy Airtel Payment Bank wallet using existing Airtel mobile KYC" which is found to be a disregard of Aadhaar Act and Regulations.

(With inputs from news agency)