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Airtel Payments Bank terminates contracts with 1,000 retailers

January 08, 2018

Airtel Payments Bank has terminated contracts with nearly 1,000 retailers for not following the due process while signing up customers, after it conducted internal investigations to zero in on errors and lapses that led to its Aadhaar-based electronic-know your customer (e-KYC) licence getting suspended.

It has been reported that the company levied a penalty of around 50 times the commission paid on several retailers who violated the guidelines for the first time, and removed repeat offenders from the network besides imposing a fine on them. Further, all retail partners have been warned of strict action in case of violation of the guidelines. It is learnt that during the probe, some of the retailers that were also acting as designated banking points had not informed customers about savings account opening and direct benefit transfer receipts in an upfront manner. The Payments Bank has now stated that wherever multiple violations have been found, contracts have been terminated. According to the company, about 1,000 retailers have been removed from the network and penalised as of December, 2017 and the number is likely to rise as investigation continues.

The company launched the probe in December 2017, after the Unique Identification Authority of India (UIDAI) suspended Airtel and Airtel Payments Bank licenses for conducting Aadhaar-based verification of customers following complaints of the company using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without taking their informed consent.

 
 

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