15th October, 2018

UIDAI Establishes Strict Norms For Aadhaar-Linking

After the violation of e-KYC norms by Airtel, the UIDAI has now made the rules of obtaining ‘explicitly-informed consent’ from customers compulsory.

Following the subsidy fiasco, the Unique Identification Authority of India (UIDAI) has laid strict norms for linking Aadhaar to bank accounts.

The latest rules have made the ‘explicitly informed consent’ from customers compulsory.

The National Payments Corporation of India (NPCI) has also disabled the feature that was often misused by banks while seeding Aadhaar to accounts. The feature did not need the informed consent of residents.

In the Airtel fiasco, the LPG subsidy from the government was credited to new accounts without their knowledge. The Airtel even opened the payments bank account without the knowledge of the customers. The mapping was done without obtaining the informed consent of the Aadhaar holder.

Airtel’s actions caused inconvenience to people who were clueless about the receipt of their subsidies.

To avoid inconvenience to the customers, the UIDAI has now notified the Aadhaar collected for a purpose cannot be used for any other purpose without obtaining the informed consent of the specific Aadhaar-holders.