Govt extends deadline for banks to set up Aadhaar centres
What's the story
The UIDAI has given banks one more month to open Aadhaar enrolment centres at their branches; the original order had come in July and the deadline was August 31. All commercial banks were asked to open Aadhaar enrolment centres at 10% of their branches. If they don't do so till September 30, fines of Rs. 20,000 per uncovered branch would be imposed.
Order
What did the original order say?
Around July 11, the UIDAI had issued instructions to all public and private sector banks to open Aadhaar enrolment centres at one out of 10 branches. At that time, there were 25,000 active enrolment centres in India, but none at bank premises. Considering there are 120,000 bank branches in the country, this move would add another 12,000 enrolment and updation centres.
Challenges
What problems did the banks face?
According to UIDAI CEO Ajay Bhushan Pandey, banks requested an extension "saying they are still in the process of procuring biometric devices, certification of enrolment operators and identifying enrolment agencies". After September 30, Rs. 20,000 will be charged per month for each uncovered branch. Eg. if seven (out of 10) branches have enrolment centres, a fine of Rs. 60,000 per month (Rs. 20,000x3) will be levied.
Information
Where all in banking is Aadhaar mandatory now?
Aadhaar is now mandatory for opening new bank accounts as well as for transactions over Rs. 50,000. Existing bank account holders have been asking to submit Aadhaar details by December 31, else their accounts might be blocked.