Airtel payment authentication row: We didn't live up to standards, says CEO

Days after Unique Identification Authority of India (UIDAI) temporarily barred  Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using eKYC process, as well as e-KYC of payments bank clients, CEO Gopal Vittal admitted that there were lapses in its governance of the customer authentication process. 

In a letter to all employees dated December 25, Gopal Vittal acknowledged that "in this case, we did not meet our high standards."

What was the controversy?

According to the NPCI Regulations, the due amount of Direct Benefit Transfers to the bank account which was last linked to you Aadhar card. At the end of the November, a total of 167.7 crores LPG subsidy of over 3 million has been deposited in Airtel Payments Bank accounts, reported PTI. The account holders did not have any idea about the credited subsidy as all of these accounts in Airtel Payments bank have been created without the proper consent of the customers, as reported by PTI. "For those who were unaware, this has probably caused great inconvenience and confusion," Gopal Vittal mentioned in the letter. 

What is Airtel Payment Bank? 

Launched in January, Airtel Payments Bank offers 7.25% interest on deposits which is the highest among competitors such as Paytm Payments Bank, Fino Payments Bank and others. Since its starting the bank has served over 50 million customers and handled the monthly transaction of almost 3000 crores, Vittal mentioned in the letter.

UIDAI's response: 

After it came to their notice, UIDAI suspended the e-KYC licence of India's largest telecom operator with 285 million subscribers — Airtel and its payment bank arm which opened in January — through an interim order. 

Then, UIDAI ordered PricewaterhouseCoopers to conduct an audit of Bharti Airtel and Airtel Payments Bank to ascertain if their systems and processes are in compliance with the Aadhaar Act, 2016.

Later (UIDAI) has conditionally allowed Bharti Airtel to conduct e-KYC verification of mobile subscribers up to January 10 if Rs 138 crore of LPG subsidy transferred into its subscribers’ payment bank accounts is reverted to other bank accounts held by them. However, Airtel Payments bank did not receive any relief. 

Vittal's response to the controversy: 

In his letter, CEO Gopal Vittal regrets not taking any faster action faster on the issue. He urged all employees to be more active in solving the problem faced by tons of customers, "we must all be responsive to the needs of our customers as well as Government agencies."

Here is the full letter written by Gopal Vittal to Airtel employees