Large telco secretly opens bank accounts using Aadhaar-linked eKYC
In December 2017, it was revealed that the large telco Bharti Airtel made use of Aadhaar-linked eKYC (electronic Know Your Customer) to open bank accounts for their customers without their knowledge or consent. eKYC is a way of using data in the UIDAI database as part of the verification process, which Airtel made use of for the issuing of SIM cards, and also secretly opened bank accounts with their Airtel Payments Bank. More than 2 million accounts could have been opened, receiving more than 400 million rupees in subsidies into the accounts. This was found to be in breach of the Aadhaar Act; Airtel's punishment was to have their ability to use eKYC for the issuing of SIM cards temporarily suspended.
Publication: Times of India
Date: December 16 2017
Publication: The Wire
Reporters: Anand Venkatanarayanan and Srikanth Lakshmanan
Date: 21 December 2017