Nearly 10 months after the trouble started brewing for Airtel and Airtel Payments Bank, the RBI (Reserve Bank of India) and the UIDAI (Unique Identification Authority of India) have permitted the payments bank to onboard new customers and use Aadhaar e-KYC for the same.
As an Airtel spokesperson said, “Airtel Payments Bank has received requisite approvals from The Reserve Bank of India to start onboarding new customers. Airtel Payments Bank has also been permitted by the UIDAI to resume the onboarding of customers using Aadhaar based e-KYC. We thank the authorities for the approvals.”
The spokesperson added, “We remain committed to the Government’s vision of financial inclusion and banking for all.”
What Went Wrong With Airtel And Airtel Payments Bank?
UIDAI first sent notice to Airtel and Airtel Payments Bank in September 2017 following the allegations that the company was using Aadhaar-based SIM verification of customers to open payments bank accounts without their “informed consent”.
At the time, both the entities stated that the opening of a bank account had been “de-linked” from the e-verification process of new mobile connections.
Soon after a second notice was issued in November 2017, after which the company said that no new bank accounts were being opened without the consent of the customers. The company also gave the assurance that additional safeguards had been put in place to protect the security and privacy of the customers.