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Government: Money fraudulently withdrawn from banks using Aadhaar

The Indian government on Tuesday admitted that there have been cases of fraudulent money withdrawal using Aadhaar details.

Prajeet Nair Feb 09th 2018

After several fraud charges and many alleged fake use of Aadhaar the Indian government finally reacted on Tuesday and admitted that there have been incidences of using fake Aadhaar credentials for fraudulent bank transactions.

On Tuesday, the minister of state for finance Shiv Pratap Shukla in a written reply to Rajya Sabha admitted that there have been six cases reported by four Public Sector Banks involving fraudulent withdrawal of money worth Rs 1.5 crore.

According to latest reports, the two cases were reported from Bank of India and the other two cases were reported from Syndicate Bank involving a sum of Rs 1.37 crore and Rs 2.26 lakh respectively. The report stated, “In both cases, fraudulent mapping of Aadhaar numbers was done by business correspondents or staff,” said Shukla.

"So-called Aadhaar Smart card is totally unnecessary and a waste as during such printing its QR code often becomes dysfunctional. The Aadhaar card or the downloaded Aadhaar card printed on ordinary paper or mAadhaar is perfectly valid for all kind of uses.”

Ajay Bhushan Pandey

CEO, UIDAI

"Bank of India has sensitized operational staff to take proper precautions by mapping Aadhaar numbers, strengthening control measures, and stepped up inspections to prevent such frauds in the future. The bank has initiated disciplinary action against the erring staff," Shukla further said.

Similar cases have also been reported that Rs 1.95 lakh and Rs 0.49 lakh was withdrawn using Aadhaar details from Allahabad Bank and UCO Bank respectively.

On Tuesday in Lok Sabha Finance Minister Arun Jaitley said, “The department has received a total number of 20 cases of bank frauds involving Rs 7.65 lakh connected with linking Aadhaar with bank accounts since 2015.

Plastic or PVC Aadhar smart card not usable: UIDAI

The Unique Identification Authority of India (UIDAI) said on Tuesday in a statement that the use of plastic or PVC Aadhaar smart cards are not usable as the QR code can become dysfunctional during unauthorized printing and could be used for fraudulent cases.

UIDAI has asked people to keep away from such elements/shops/vendors. Ajay Bhushan Pandey, CEO, UIDAI said, “So-called Aadhaar Smart card is totally unnecessary and a waste as during such printing its QR code often becomes dysfunctional. The Aadhaar card or the downloaded Aadhaar card printed on ordinary paper or mAadhaar is perfectly valid for all kind of uses.”