UIDAI-Airtel Payments Bank case: Company deposits Rs 2.5 crore penalty; to return entire amount

By: |
Updated: December 19, 2017 5:55 PM

More than 31 lakh customers reportedly received as many as Rs 190 crore LPG subsidy in their Airtel bank accounts, which they did not know had been opened. Even though Airtel denied any wrong-doing, the company has deposited Rs 2.5 crore as an interim penalty to UIDAI.

More than 31 lakh customers reportedly received as many as Rs 190 crore LPG subsidy in their Airtel bank accounts, which they did not know had been opened. (Image: PTI)

More than 31 lakh customers received Rs 190 crore of LPG subsidy in their Airtel bank accounts, which they did not know had been opened. The Unique Identification Authority of India (UIDAI) was informed that at the time of mobile verification using Aadhaar e-KYC, the Airtel retailers were also opening Airtel Payments Bank accounts, without the informed consent of the user. Government’s LPG subsidy was also getting transferred to these accounts, without their consent. Even though Airtel denied any wrong-doing, the company has deposited Rs 2.5 crore as an interim penalty to UIDAI, PTI reported.

On Monday, UIDAI had temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar linked e-KYC verification of SIMs and bank clients. The company however responded by saying no bank account was opened without the consent of the customers and additional safeguards have been introduced. In fact, Airtel even offered to return Rs 190 crore subsidy that had flown ‘unsolicitedly’ into the Payments Bank accounts of its 31 lakh mobile phone subscribers, PTI reported quoting sources.

“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 Bank’s onboarding of customers,” the company said in a statement.

“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 company added.

Mounting pressure on Airtel, the state-run oil companies had begun writing to billionaire Sunil Mittal-led firm asking it to transfer back the LPG subsidy that got credited to its payment bank accounts. Mounting pressure on Airtel, the state-run oil companies had begun writing to billionaire Sunil Mittal-led firm asking it to transfer back the LPG subsidy that got credited to its payment bank accounts.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Reliance Retail aims three-fold growth in 3-5 years
2All PSBs, REC to buy stakes in bad bank; Indian Banks’ Association files application for incorporation of NARCL
3Massive green push: Reliance Industries to invest Rs 75,000 crore in 3 years