The Unique Identification Authority of India (UIDAI) has temporarily suspended telecom major Bharti Airtel and Airtel Payments Bank's "Aadhaar linked e-KYC" services for alleged misuse of the facility.
"We can confirm that we have received interim order from the UIDAI regarding temporary suspension of Aadhaar linked e-KYC services till their satisfaction on certain processes relating to Airtel Payments Bank's onboarding of customers," the company said in a statement on Saturday.
"We are engaging with the authority and are hopeful of an early resolution. We are also undertaking to complete the said actions on priority and have commenced with checks of our process flows. Being compliant to all guidelines is paramount to us," the statement added.
According to sources, UIDAI's interim order comes after some customers of the telecom major alleged that the company had opened their bank account in Airtel Payments Bank when they used the "Aadhaar linked e-KYC services" without their consent.
The "Aadhaar linked e-KYC" service of UIDAI provides an instant, electronic, non-repudiable proof of identity and proof of address along with date of birth and gender, resident's mobile number and email address to the service provider.
Aadhaar authentication and e-KYC services are available to different sectors and government organisations under a licence.
Bharti Airtel uses the Aadhaar data base for the purposes of mobile services KYC under a licence agreement, while Airtel Payments Bank which is a separate entity is an authorised KYC User Agency (KUA) and Authentication User Agency (AUA) of UIDAI having signed the licence agreement.