In an unprecedented move, the Unique Identification Authority of India (UIDAI), slapped monetary penalty on 13 banks for violating norms pertaining to authentication of Aadhaar.
For some banks, the penalties are as high as ₹1 crore. Banks from both public and private sectors were penalised.
The banks penalised include ICICI Bank, IndusInd Bank, IDBI Bank, Ratnakar Bank, Karnataka Bank and Lakshmi Vilas Bank.
According to UIDAI sources, the measures taken include disincentives against a few authentication user agencies and banks that did not comply with the directions of UIDAI issued under Aadhaar Act/Regulations from time to time.
Criminal proceedings
UIDAI, in its show-cause notice to the banks, asked them to cite reasons as to why criminal proceedings should not be initiated against them.
UIDAI said that a few banks were causing inconvenience to the people by not making the minimum stipulated enrolment and updates. Sources said these 13 entities were much short of the enrolment update targets despite repeated requests. These banks were accused of sending back people from their premises. UIDAI had directed to set up Aadhaar Enrolment and Update facility inside banks’ premises at a minimum of one out of every 10 branches by August 30, 2017.
UIDAI also said that the selection of branches for enrolment and update facility will be such that it covers all the district headquarters where it is present, and that there is maximum coverage of blocks in every district.
UIDAI had also decided keep on hold the eKYC facility of these banks due to non-compliance of its directions. Later, the eKYC facility of 5 banks had been restored, while that of 8 others is under process of restoration subject to compliance.
Meanwhile, UIDAI on Friday relaxed norms for banks on the minimum number of Aadhaar enrolments and updations, till November 1.
