Airtel Payments Bank gets approval from RBI and UIDAI to start taking new customers

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Airtel Payments Bank has stated that it has received all the necessary approvals from the Central Bank to resume taking new customers. Aadhaar-issuing body UIDAI has also said that it has allowed the bank to use eKYC based on the unique identification number of 12 digits.

This incident comes about 7 months after Airtel and Airtel Payments Bank was under scrutiny for opening payments bank accounts for its mobile phone subscribers without actually taking their permission. It was also found that LPG subsidy that went up to crores of rupees was subsequently deposited in these accounts.

Airtel-Payments-Bank-gets-approval-from-UIDAI-and-RBI-for-on-boarding-new-customers
Airtel Payments Bank can now take on new customers

Following the allegations, Airtel Payments Bank was directed by the Reserve Bank of India (RBI) to not take any more new customers. The Aadhaar-issuing authority had also suspended the license of Airtel and its payments bank for e-KYC. The company, however, has denied the accusations and has now streamlined all its processes so that it is in compliance with the regulations.

Earlier in the year, UIDAI has restored the authorisation of Airtel to perform Aadhaar-based verification for its mobile customers. However, the suspension of the license of the payments bank was not lifted.

A statement issued by the bank has mentioned that it is committed to the vision of the government regarding financial inclusion.

The Airtel Payments Bank operates in the same way as any other bank, but on a smaller scale, without involving any credit risk. Some of the key features of the bank are as follows:

  • It  can take deposits that go up to Rs.1 lakh.
  • The bank offers mobile payment service and remittance services.
  • ATM facility and debit cards are offered in addition to third-party fund transfer facility and net banking.
  • The bank cannot offer loans or credit cards to customers.

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