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Airtel bank to return LPG subsidy to original accounts

HPCL has written to Airtel Payments Bank and requested that the subsidy amounts be immediately either transferred back to the customers' earlier bank accounts or to the respective OMCs

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LPG subsidy amounting to about Rs 168 crore for 37.21 lakh consumers has been deposited in Airtel Payments Bank accounts till the end of November. The accounts were allegedly were opened without the customers' informed consent.

According to sources, Airtel has written to National Payments Corporation of India (NPCI) saying it will return Rs 190 cr subsidy to original accounts.

Hindustan Petroleum Corporation Ltd (HPCL) has written to Airtel Payments Bank and requested that the subsidy amounts of these consumers be immediately either transferred back to the customers' earlier bank accounts or to the respective oil marketing companies.

"In many cases, across the three oil marketing companies (IOCL, BPCL and HPCL) where the Aadhaar linking of LPG consumers has got changed in the NPCI mapper to Airtel Bank and hence the LPG subsidy is getting sent to the new bank account in the Airtel Bank," HPCL said in a statement.

Out of Rs 167.72 crore, Rs 88.18 crore of subsidy was transferred of 17.32 lakh consumers enrolled with Indian Oil Corp (IOC). Over Rs 40 crore subsidy belonged to 10.06 lakh consumers enrolled with HPCL and Rs 39.46 crore to 9.8 lakh consumers of Bharat Petroleum Corp Ltd (BPCL), according to a senior official.

The petroleum and natural gas ministry along with oil marketing companies have been receiving a large number of complaints from users regarding non-credit of the LPG subsidy amounts in their bank accounts for the past few weeks.

When contacted, an Airtel Payments Bank spokesperson said, "As per government rules, DBT (direct benefit transfer) subsidy goes to the latest Aadhaar-linked bank account. Customers can withdraw this at any of our designated outlets. No charges for such withdrawals are levied. Having said that, given that some customers have experienced inconvenience of not being aware of which bank account the DBT has gone to, we are fully committed to resolving this immediately. We are in the process of taking appropriate steps in respect of the same."

Earlier, the company had confirmed that it had received an interim order from the UIDAI regarding temporary suspension of Aadhaar linked e-KYC services till their satisfaction on certain processes relating to Airtel Payment Bank's onboarding of customers.

On Saturday, UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using e-KYC process as well as e-KYC of payments bank clients.

UIDAI, in an interim order, had suspended e-KYC licence key of Bharti Airtel Ltd and Airtel Payment Bank Ltd with immediate effect, according to people aware of the development.

For the past few weeks, there have been allegations that Bharti Airtel has been using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their 'informed consent'. UIDAI also took strong objection to allegations that such payments bank accounts are being linked to receive LPG subsidy.

This order means Airtel would not be able to, in the interim, carry out 'electronic-verification' or link mobile SIMs of its customers with their Aadhaar number though e-KYC. Also, Airtel Payments Bank will not be able to open a new account with Aadhaar e-KYC. However, accounts can be opened through alternate methods, if available.

UIDAI had also asked PwC 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. The first notice was sent in September but replies of Airtel were found to be unsatisfactory. Subsequently, another notice was issued in November where also the reply of Airtel was not found satisfactory.

TRANSFER ROW

  • HPCL has written to Airtel Payments Bank and requested that the subsidy amounts be immediately either transferred back to the customers' earlier bank accounts or to the respective OMCs
     
  • Airtel Payments Bank spokesperson said that as per government rules, DBT subsidy goes to the latest Aadhaar-linked bank account
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