Rs 47-crore LPG subsidy deposited in Airtel bank accounts 'opened without consent'

More than 23 lakh customers have received cooking gas subsidy of Rs 47 crore in their respective Airtel Bank accounts they don’t seem to have opened, prompting the government to intervene even as the top mobile operator denied any wrongdoing.
Consumers receive cooking gas subsidy in their bank accounts linked to their unique biometric identity, or Aadhaar. But after several consumers lately complained about not receiving subsidy, it emerged that their subsidy had actually been credited to their respective Airtel Bank accounts.

The oil ministry has clarified that the rule is to transfer subsidy to the latest bank account of the beneficiary seeded with their Aadhaar number.

Since June 9 this year, more than 23 lakh gas consumers received over Rs 47 crore of subsidy in more than 41 lakh transactions in their Airtel Bank accounts, according to a communication sent by a state oil company to National Payments Corporation of India (NPCI). Of these, about 11 lakh gas customers belong to Indian Oil while the balance is evenly split between Bharat Petroleum and Hindustan Petroleum. NPCI maps bank accounts with Aadhaar and oversees retail payments and settlement systems in the country.

The state oil firm also told NPCI that Airtel has been opening payments bank accounts of its customers without their consent, and that retail shops representing Airtel do check boxes for opening Airtel Bank account and receiving subsidy while e-verifying customers who had approached them for linking their Aadhaar with their mobile number, or ordered a replacement SIM or a new connection.

The firm has also urged NPCI to stop further Aadhaar number being seeded into Airtel Bank without consumer consent and get Rs 47 crore transferred from Airtel Bank to the customers’ existing bank accounts where the subsidy should have gone in the first place.

The oil ministry said it has also taken up the matter with Airtel, NPCI and the finance ministry in this regard.

The country’s top mobile operator has denied any wrongdoing, saying it was transparently abiding by the law.

“Airtel Payments Bank is fully compliant with all guidelines and follows a stringent customer onboarding process,” the telco said in response to ET’s query.

“Airtel Payment Bank accounts are opened only after explicit consent from the customer. A separate consent for direct benefit transfer is taken from all customers,” it said.

In September, UIDAI, which issues Aadhaar, had served a notice on Airtel following complaints over its retailers allegedly opening payments bank accounts without taking informed consent of customers seeking Aadhaar-based mobile number verification.

Airtel began operating a payment bank last year after the RBI allowed opening of such banks, which can’t lend like traditional banks and must have a minimum paid-up equity capital of Rs 100 crore.