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UIDAI Suspends E-KYC For 13 Banks, AUAs After Missing Targets

UIDAI Suspends E-KYC For 13 Banks, AUAs After Missing Targets

The facility has been restored for five banks/ Aadhaar authentication agencies (AUAs)

For the other eight banks/ AUAs, restoration is subject to compliance

With the suspension, banks couldn’t offer several financial services linked to the e-KYC facility

Cracking down on missed targets, the Unique Identification Authority of India (UIDAI)  has e- know-your-customer facilities for multiple Indian banks and authentication agencies. The decision came in after these organisations failed to meet targets on enrolling and updating citizen information for their Aadhaar biometric database.

UIDAI has reportedly suspended services for 13 banks and Aadhaar authentication agencies (AUA) last week after it found them performing dismally on their targets. However, UIDAI restored the facility for five banks including ICICI Bank, IndusInd Bank, RBL Bank and IDBI Bank, after they assured the authority that they would undertake corrective measures and meet their targets.

With the suspension, banks couldn’t offer several financial services linked to the authentication facility. Overall, 30-35 Mn Aadhaar enrolment and updating services are undertaken every day at banks and authentication agencies.

Prior to this, UIDAI had decided to locate enrolment centres within banks and government offices owing to an increased instance of frauds and data hacks at private centres.

Section 12A of Aadhaar (Enrolment and Update) Regulations mandates banks to set up Aadhaar enrolment facilities in at least one out of every 10 branches.

The development comes at the time when UIDAI has mandated the use of face recognition for services such as the issuance of mobile SIM, banking services, public distribution system dole-outs, and marking of office attendance at government offices.

At the same time, the Delhi high court will hear a plea seeking damages from the authority for alleged failure to adopt adequate security measures that led to the controversial Aadhaar data leaks.

[The development was reported by ET.]

Author

Bhumika Khatri

Inc42 Staff

Hailing from a business-oriented family, Bhumika has always been crunching numbers in her head. Words are her escape and she looks to find hidden startup stories.

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