Airtel deposits 'interim penalty' of Rs 2.5 crore (25 million) with UIDAI

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

More than 31 lakh (3.1 million) customers received Rs 190 crore (1900 million) 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.

Airtel has deposited an interim penalty of Rs 2.5 crore (25 million) with the Aadhaar-issuing body UIDAI after an action against the telecom operator for allegedly opening payments bank accounts of its mobile subscribers without their 'informed consent', according to 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.

Airtel, yesterday, wrote to the National Payments Corporation of India (NPCI) promising to return Rs 190 crore (along with interest) to the consumers' original bank accounts that were linked to the Direct Benefit Transfer (DBT).

The NPCI is an umbrella organisation for all retail payments in India. Both Airtel and Airtel Payments bank came under fire after the the Sunil Mittal-led firm allegedly opened accounts of its mobile phone subscribers without seeking their "informed consent", and LPG subsidy worth crores was deposited into these accounts.

The government acted swiftly in the matter and the UIDAI, in a strong move late last week, temporarily barred the company from conducting Aadhaar-based SIM verification of mobile customers using eKYC process, and e-KYC of payments bank clients.