The Unique Identification Authority of India (UIDAI) has asked banks to provide Aadhaar-based onetime password (OTP) for opening of bank accounts only in the presence of the customer, in a banking outlet. In a letter addressed to commercial banks, UIDAI Chief Executive Officer Ajay Bhushan Pandey cited instances of misuse of Aadhaar while opening accounts.
“It has come to the notice of the UIDAI that there has been instances wherein: Aadhaar of person A got seeded with person B’s account to carry out fraudulent transaction,” the letter said.
“Stolen Aadhaar copy was used to open a bank account and obtain credit, debit card,” the letter said while citing another example.
The UIDAI said a fabricated Aadhaar card provided to a bank may result in fraud and loss of money, if the bank does not authenticate with finger print or OTP to adequately identify the Aadhaar holder.
— source thehindu.com