Business

The Indian Banks’ question UIDAI authority under Aadhaar act

IBA has written to the ministry of electronics and information technology, the Reserve Bank of India (RBI) and the finance ministry’s department of financial services, arguing that only the central bank is empowered to issue directives to banks under the Banking Regulation Act, the two people said on condition of anonymity.

On July 14, UIDAI first asked banks to open Aadhaar enrolment and updating facilities in at least a tenth of their branches by the end of August.

Later, it extended the deadline by a month and said it would impose a Rs 20,000 fine per uncovered branch after September 30, the Press Trust of India reported on September 5, citing UIDAI chief executive Ajay Bhushan Pandey.

Banks will no longer be able to engage with private agencies for Aadhaar enrolment of their customers, it said. “Banks shall complete the task of setting up Aadhaar enrolment and update centre in 15,200 bank branches by October 31.

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Opinion Poll
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