UIDAI has extended the deadline for all public and private sector banks to setup Aadhaar Enrollment centres within their premises. On requests of the Banks, UIDAI extends the deadlines till September 30,2017 which was 30th August earlier.
Aadhaar Enrollment Centres : Financial disincentives for uncovered branch
The extension has come with the condition of “financial disincentives for every uncovered branch per month” if the banks don’t meet the criteria of establishing Aadhaar enrollment centres in at least 10% of their branches.
Ajay Bhushan Pandey, CEO, UIDAI said that for ensuring compliance of the directives issued by UIDAI on 14th July 2017 and in accordance with the Aadhaar (Enrolment & Update) Regulations 2016, a financial disincentive of Rs. 20,000 per uncovered branch shall be levied on the bank for failing to adhere to the target of setting up of enrollment and update centres in 10% of its branches by September 30, 2017.
He added that the financial disincentive shall be levied for uncovered number of branches at the end of every subsequent month also. Besides this, for any non-compliance to the directions, “banks shall be liable for action under Section 42 of the Aadhaar Act, 2016.”
In simple terms, if a bank has 100 branches, and Aadhaar updation centres are not established it at least 10 branches by September, the Bank will have to pay a penalty of Rs. 20,000 per branch. If the centre was supposed to be set up in atleast 10 branches, and has been established in only five, then the penalty would be Rs.20,000 each for five remaining branches.
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The UIDAI has issued a notification to banks to setup Aadhaar Enrollment Centres in 1/10th of their bank branches across the country by August 30 in view of the order that mandated Aadhaar verification for all existing and new bank accounts’ holders by December 31, 2017.
“This was done with a view to make Aadhaar enrolment, updation, linking to bank account convenient to people, especially for the bank customers as they do not have run around searching for Aadhaar Centers,” said Pandey.
He added that the reason for extension is that many of the banks have said that they are still in the process of procuring biometric devices, certification of enrolment operators and identifying enrolment agencies, etc., and have therefore sought extension of the deadline.