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Wednesday, January 10, 2018

Fraud in linkage of Aadhaar with bank accounts and SIM cards

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA

QUESTION NO 158
ANSWERED ON 02.01.2018

Fraud in linkage of Aadhaar with bank accounts and SIM cards

158 Shri Husain Dalwai

Will the Minister of FINANCE be pleased to state :-

(a) the details of complaints of bank frauds received where money was siphoned out in the name of linking Aadhaar with PAN/Bank Account/SIM card, since 2015, bank-wise, month-wise;

(b) whether any directives have been issued to banks to deal with such instances of bank fraud, if so, the details thereof, if not, the reasons therefor;

(c) whether a Grievance Redressal Mechanism has been put in place to deal with such instances, if so, the details thereof, if not, the reasons therefor; and

(d) the reasons due to which Government is mandating linkage of Aadhaar with bank accounts and SIM cards despite such incidents of misuse?

ANSWER

THE FINANCE MINISTER

(a) to (d): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) OF RAJYA SABHA STARRED QUESTION NO. 158* FOR 2NDJANUARY, 2018 REGARDING “FRAUD IN LINKAGE OF AADHAAR WITH BANK ACCOUNTS AND SIM CARDS” TABLED BY SHRI HUSAIN DALWAI.

(a) and (b): The Department has received 20 complaintsof bank frauds involving Rs.7.65 lakhs connected with linking Aadhaar with bank accounts since 2015,as per details at Annexure.However, for customer protection, zero liability of a customer is assured vide Reserve Bank of India’s (RBI)circular dated 6th July, 2017in all cases of a third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system and the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction.On being notified by the customer, the bank shall credit (shadow reversal) the amount involved in the unauthorized electronic transaction to the customer’s account within ten working days from the date of such notification by the customer.

Further, the guidelines inter-alia addresses the following areas for safeguarding the customers while handling the cases of unauthorized electronic banking transactions:

I. Strengthening of systems and procedures
II. Reporting of unauthorised transactions by customers to banks
III. Limited liability of a customer
IV. Reversal timeline for zero liability/ limited liability of customer
V. Board approved policy for customer protection
VI. Burden of proof on banks
VII. Reporting and monitoring requirements

(c): The Banks have their grievance redressal policy and internal Grievance Redressal Mechanism for resolution of grievances and customer complaints displayed on their respective websites. In case of alleged unauthorised transactions, the case is investigated and settled as per the Standard Operating Procedures (SOP).

Out of 1.26 lakh overall grievances, 1.20 lakh have been disposed of during the period 1st January, 2017 to 28th December, 2017, leading to a settlement percentage of95%.

(d):In terms of amendments to provisions of Prevention of Money Laundering – (Maintenance of Records) Rules, 2005 issued vide Gazette Notification G.S.R 538(E) dated June 1, 2017, it is mandatory to obtain Aadhaar for linking all bank accounts, insurance, pension, mutual funds and SIM cardsfor individuals who are eligible to enrol for Aadhaar.

Source: Rajya Sabha