As many as 23 banks, including ICICI BankNSE -0.30 %, HDFC BankNSE 0.31 % and Bank of BarodaNSE 1.07 %, may face penalties with retrospective effect if they fail to make eight Aadhaar enrolments or updations per branch per day from November 1.
The Unique Identification Authority of India (UIDAI) last week told banks to ensure that at least eight enrolments or updations are carried out daily in each stipulated branch from November 1 or face financial disincentives with effect from July 2 018
This made senior bankers across the board agitated. “UIDAI is not the regulator. How can it threaten to penalise banks bypassing the Reserve Bank of India?” is the common refrain.
On June 1, UIDAI had said stipulated bank branches with Aadhaar facility will have to ensure at least eight enrolments or updations daily in each branch from July 1 and 12 per day per branch from October 1, and up to 16 from January 1, 2019 onwards.
The deadline for the first stage of implementation has now been extended to November 1. Before the extension, ICICI Bank topped the list of defaulters for July and was facing financial disincentive of Rs 82 lakh, followed by Indian Overseas Bank (Rs 68 lakh), Canara Bank (Rs 64.2 lakh) and Uco Bank (Rs 57 lakh).
“UIDAI is free to take action as per provisions of the Aadhaar Act 2016,” the Aadhar issuing body said in one of its recent communications.
The Unique Identification Authority of India (UIDAI) last week told banks to ensure that at least eight enrolments or updations are carried out daily in each stipulated branch from November 1 or face financial disincentives with effect from July 2 018
This made senior bankers across the board agitated. “UIDAI is not the regulator. How can it threaten to penalise banks bypassing the Reserve Bank of India?” is the common refrain.
On June 1, UIDAI had said stipulated bank branches with Aadhaar facility will have to ensure at least eight enrolments or updations daily in each branch from July 1 and 12 per day per branch from October 1, and up to 16 from January 1, 2019 onwards.
The deadline for the first stage of implementation has now been extended to November 1. Before the extension, ICICI Bank topped the list of defaulters for July and was facing financial disincentive of Rs 82 lakh, followed by Indian Overseas Bank (Rs 68 lakh), Canara Bank (Rs 64.2 lakh) and Uco Bank (Rs 57 lakh).
“UIDAI is free to take action as per provisions of the Aadhaar Act 2016,” the Aadhar issuing body said in one of its recent communications.
An internal list detailing the banks’ Aadhaar enrolment data shows that State Bank of India and Punjab National Bank are fully compliant with the target given to them.
“Enrolling Aadhaar is not our core job. We are already constrained with lack of manpower. Hiring is also freezed in several banks which are placed under prompt corrective action by RBI. This is a difficult situation,” said a senior executive with a state-owned lender.
mong state-owned entities, Canara Bank, Corporation Bank, IDBI Bank, Indian Overseas Bank, Punjab & Sind Bank, United Bank of India and Vijaya Bank may also have to cough up penalties retrospectively if they fail to adhere to direction from November.
“This trend of setting daily targets is ridiculous. Our designated branches are ready with the Aadhaar enrolment facility but we can’t force customers to do it,” said a bank CEO.
Among private lenders, Bandhan Bank, DCB Bank, Dhanlaxmi Bank, Federal Bank, IndusInd Bank and RBL Bank are listed as defaulters.
UIDAI has directed banks to set up Aadhaar enrolment and updation facilities within their premises in one out of every 10 branches to make Aadhaar verification process for bank accounts convenient.
Banks meeting the targets will not face "financial disincentives" between July and October , UIDAI said.
“Enrolling Aadhaar is not our core job. We are already constrained with lack of manpower. Hiring is also freezed in several banks which are placed under prompt corrective action by RBI. This is a difficult situation,” said a senior executive with a state-owned lender.
mong state-owned entities, Canara Bank, Corporation Bank, IDBI Bank, Indian Overseas Bank, Punjab & Sind Bank, United Bank of India and Vijaya Bank may also have to cough up penalties retrospectively if they fail to adhere to direction from November.
“This trend of setting daily targets is ridiculous. Our designated branches are ready with the Aadhaar enrolment facility but we can’t force customers to do it,” said a bank CEO.
Among private lenders, Bandhan Bank, DCB Bank, Dhanlaxmi Bank, Federal Bank, IndusInd Bank and RBL Bank are listed as defaulters.
UIDAI has directed banks to set up Aadhaar enrolment and updation facilities within their premises in one out of every 10 branches to make Aadhaar verification process for bank accounts convenient.
Banks meeting the targets will not face "financial disincentives" between July and October , UIDAI said.
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