In an interim order, UIDAI has suspended e-KYC licence key of Bharti Airtel Ltd and Airtel Payment Bank Ltd with immediate effect, according to people aware of the development.
The UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using eKYC process as well as e-KYC of payments bank clients.
In an interim order, UIDAI has suspended e-KYC licence key of Bharti Airtel Ltd and Airtel Payment Bank Ltd with immediate effect, according to people aware of the development.
For the past few weeks, there have been allegations that Bharti Airtel has been using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their 'informed consent'. UIDAI also took strong objection to allegations that such payments bank accounts are being linked to receive LPG subsidy.
This order means Airtel would not be able to, in the interim, carry out 'electronic-verification' or link mobile SIMs of its customers with their Aadhaar number though eKYC. Also, Airtel Payments Bank will not be able to open a new account with Aadhaar e-KYC. However, accounts can be opened through alternate methods, if available.
When contacted, an Airtel spokesperson said: "We can confirm that we have received interim order from the UIDAI regarding temporary suspension of Aadhaar linked e-KYC services till their satisfaction on certain processes related 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. Any inconvenience to our customers is regretted," the spokesperson said.
More than 23 lakh customers have reportedly received as many as Rs 47 crore in their Airtel bank accounts, which they did not know had been opened. Airtel Payments Bank has about 50 milion users.
UIDAI also asked 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.
The first notice was sent in September but replies of Airtel was found to be unsatisfactory. Subsequently, another notice was issued in November where also the reply of Airtel was not found satisfactory.
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