Home >politics >policy >UIDAI asks banks to use Aadhaar e-KYC for DBT users

New Delhi: The Unique Identification Authority of India (UIDAI) has said that Aadhaar e-KYC can be used to authenticate beneficiaries of government subsidies and welfare schemes, while for others the Aadhaar card can be used for verification, said a senior UIDAI official, requesting anonymity.

The Aadhaar-issuing authority wrote to the banks last week clarifying the instances and modes in which Aadhaar can be used, and a copy of the same was also sent to the Reserve Bank of India, he added. The UIDAI wrote to banks after it received legal opinion on the matter, in the wake of a recent Supreme Court verdict that restricted the use of Aadhaar by private entities, but cleared it for welfare schemes.

The UIDAI listed various “options" for the use of Aadhaar, such as QR code and offline Aadhaar, for other banking customers, he added.

Aadhaar card can also be used for verification if produced voluntarily. When contacted, UIDAI CEO Ajay Bhushan Pandey said: “There are viable and completely paperless and digital options available through digitally-signed electronic form of Aadhaar, which allows identity to be verified online without pinging our server. And through such methods the services can be seamlessly and digitally offered by banks for non-DBT customers."

UIDAI has said that banks will be entitled to seek authentication of the beneficiaries availing subsidies, benefits, services under Aadhaar Act, for transfer of any subsidy or benefit to the bank account of the beneficiary, as well as for facilitating the withdrawal of money through Aadhaar based micro-ATM machines, which means that Aadhaar-enabled Payment System and BHIM-Aadhaar Pay shall remain operative.

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