September 5, 2017
Following a request for an extension, the Unique Identification Authority of India (UIDAI) has granted banks one more month’s’ time to set up Aadhaar enrolment centres. Both private and public banks were required to facilitate these enrolment camps in 10% of their branches by the end of August. However, the UIDAI granted banks the extension and has provided them time till September 30, 2017.
In other words, 1 out of 10 branches of a particular bank must contain an Aadhaar enrolment centre to avoid the fine of Rs.20,000. Going by this, failure to set up centres in ten branches would cause the bank to cough up a sum of Rs.2,00,000 per month as fine (Rs.20,000 per branch). Likewise, the penalty will be applicable for the coming months based on the branches that are yet to have an Aadhaar enrolment centre.
Ajay Bhushan Pandey, CEO of UIDAI said, “Banks approached us saying they need more time, so we have given them till September 30 to set up the facility. Non-compliance after the deadline will attract a fine of Rs.20,000 per uncovered branch every month.” He goes on to say that the mandate to bring about enrolment centres in banks is merely for the convenience of the account holders, as they are required to link Aadhaar cards to their accounts.
Although many banks already have the online facility to link Aadhaar to bank accounts, not all of them have physical enrolment centres inside the bank. With this move, 12,000 out of the 1,20,000 branches nationwide are required to setup enrolment centres.