UIDAI imposes fine on Airtel, Axis Bank for breaching terms

Aadhaar Card

The Unique Identification Authority of India (UIDAI) has imposed fines worth multiple-crores on telecom major Bharti Airtel and Axis Bank for breaching terms and conditions attached to Aadhaar authentication, reported Times of India. 

"UIDAI has imposed disincentives on Airtel and Axis Bank for failing in their duties as requesting agencies" under the Aadhaar Act seeking authentication of identity, senior advocate Rakesh Dwivedi informed a bench headed by Chief Justice Dipak Misra.

While the UIDAI had temporarily barred the telecom firm and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using eKYC process, it is unclear whether the disincentives imposed on Airtel was linked to its above decision.

Also read — The dangers of instant Aadhaar authentication for India's 1-minute loan market

Referring to Section 57 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, the bench enquired whether the law permitted private entities to use Aadhaar authentication. The bench also asked UIDAI to list steps taken to safeguards users' data.

Dwivedi explained that if a state government requires a person's identity authentication apart from the purpose of distributing financial and other subsidies, the assembly concerned had to enact a law empowering it to do so.

“Only after enacting a law specifying the purpose can a state approach UIDAI for access to Aadhaar data for authentication purposes,” Dwivedi said.

Also read — COMMENT- Aadhaar does not identify; it merely authenticates. That's an important difference