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LATEST NEWS UPDATES | Do not force bankers to do Aadhaar seeding: bank officers' body

Do not force bankers to do Aadhaar seeding: bank officers' body

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published Published on Oct 23, 2017   modified Modified on Oct 23, 2017
-The Hindu Business Line

AIBOC questions legality of mandating UID linking of accounts

Coimbatore:
The All India Bank Officers’ Confederation (AIBOC) wants Aadhaar seeding of accounts put on hold till the Supreme Court comes out with a clear directive.

“The government should make it clear to the people that the seeding of Aadhaar is voluntary and not mandatory,” said D Thomas Franco, General Secretary, AIBOC.

He said the Aadhaar Act of 2016 was meant to cover targeted delivery of financial and other subsidies, benefits and services that were paid out of the Consolidated Fund of India.

The Act further prescribed that the enrolment is voluntary.

“If the act of getting an Aadhaar card is voluntary under the law, how can the government make it mandatory for continued access to banking and telecom facilities that were not covered by the Act in the first place?” Franco asked and cited the June 1, 2017, Gazette notification regarding Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017, inter alia, making furnishing of Aadhaar (for those individuals who are eligible to be enrolled for Aadhaar) and permanent number (PAN) mandatory for opening a bank account.

In its fight against tax evasion, the Centre has made it mandatory to quote the Aadhaar number for opening bank accounts and also made Aadhaar compulsory for 135 schemes (of 35 ministries), including free cooking gas (LPG) to poor women, kerosene and fertiliser subsidy, targeted public distribution system (PDS) and MGNREGA.

However, the Supreme Court has restricted the usage of Aadhaar to six schemes where the government provides benefits or subsidies to individuals.

The confederation further urged the government to look for alternatives or add more workforce in banks to implement Aadhaar-related work.

Opposing the move to make Aadhar seeding mandatory, Franco said: “The matter is with the Supreme Court and will, therefore be, sub judice to discuss now. Besides, the urgency in its implementation is uncalled for and against the spirit of democracy.”

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The Hindu Business Line, 22 October, 2017, http://www.thehindubusinessline.com/money-and-banking/do-not-force-bankers-to-do-aadhaar-seeding-bank-officers-body/article9918449.ece?homepage=true


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