UIDAI asks banks not to discontinue Aadhaar payment system
6 years, 4 months ago

UIDAI asks banks not to discontinue Aadhaar payment system

Live Mint  

New Delhi: The UIDAI on Friday asked banks not to discontinue the Aadhaar Enabled Payment System as it may create obstruction in the delivery of welfare benefits. In the letter, dated November 19, 2018, SBI informed NPCI of its intention to discontinue Aadhaar enabled payment system purportedly based on the understanding that its continuation may be in violation of the recent Supreme Court judgement. “Therefore any action to discontinue such payment/receipt mechanism or bank accounts by banks, on the ground that it is not possible to distinguish their use for delivery of welfare benefits or other purposes may be held contrary to Section 7 of Aadhaar Act and Puttaswamy-II judgment as it will result in creating obstruction in delivery of benefits and may cause denial in deserving cases,” UIDAI said in a circular marked to banks, CEO of NPCI and Deputy Governor of the Reserve Bank of India. The nodal body for Aadhaar further clarified that where a payment/ receipt mechanism using Aadhaar authentication such as AePS, BHIM, Aadhaar Pay has been established or a bank account has been opened or verified using Aadhaar eKYC for the purpose of correctly identifying a current or potential beneficiary of welfare scheme, there is nothing in the apex court’s recent judgement that bars use of such a mechanism.

History of this topic

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