Airtel Payments Bank Gets RBI, UIDAI Approval to Take New Customers After LPG Subsidy Fiasco

The approval has been given after Airtel came under fire for allegedly opening payments bank accounts of its mobile subscribers without their consent, and LPG subsidy worth crores was deposited into these accounts

Written by: PTI Feeds

Updated: July 12, 2018, 4:27 PM IST

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Following LPG fiasco, Airtel Payments Bank today said it has received approvals from the Reserve Bank of India (RBI) to start taking new customers. The approval has been given after Airtel came under fire for allegedly opening payments bank accounts of its mobile subscribers without their consent, and LPG subsidy worth crores was deposited into these accounts.

Also, Aadhaar-issuing authority UIDAI has allowed it to use the 12-digit unique identification number-based e-KYC, it said in a statement.

RBI thereafter had directed Airtel Payments Bank not to on-board new customers while Aadhaar-issuing body UIDAI had suspended the e-KYC licence of both Airtel and the payments bank.

The company had denied any wrong doing and streamlined its processes to comply with the regulations.

UIDAI, in March this year, restored Airtel’s authorisation to conduct Aadhaar-based verification of its mobile subscribers, but did not lift the suspension on its payments banks’ e-KYC licence.

“Airtel Payments Bank has received requisite approvals from the Reserve Bank of India to start on-boarding new customers,” the statement said. “Airtel Payments Bank has also been permitted by the UIDAI to resume the on-boarding of customers using Aadhaar based e-KYC. We thank the authorities for the approvals,” it added.

Airtel Payments Bank, it said, remains committed to the government’s vision of financial inclusion and banking for all.

A payments bank is like any other bank, but operates on a smaller scale without involving any credit risk.

It can accept deposits of up to Rs 1 lakh, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third party fund transfers but cannot advance loans or issue credit cards.