High UIDAI charges leave banks stressed

High UIDAI charges leave banks stressed

News:

1. Bank has raised the concern over the high license fee by the Unique Identification Authority of India (UIDAI) for Aadhaar authentication services center.

Important News:

2. The Bank pointed out that high charges for enabling Aadhaar customer service is affecting smaller banks and small finance banks.
3. Banks have to pay a fee of 20 lakh with validity of two years for production environment facility for authentication of Aadhaar.
4. In addition for availing pre- production environment facility fee of 5 lacks charged for 3 months.
5. The Maharashtra Urban Co-operative Banks Federation said it has received multiple complaints from banks over the high charges incurred to them by UIDAI.

Note: The Maharashtra Urban Co-operative Banks Federation represents about 500 of the 517 co-operative banks in Maharashtra.

6. Most of the non-scheduled urban cooperative bank (UCBs) are unit banks or have less than five branches.
7. Currently, UCBs has a customer base of five crore and about 1562 urban cooperative banks (UCBs) in India.
8. UCBs are meeting the credit needs of poor and marginal sections of the society at the rural level and playing a unique and efficient role in financial inclusion and inclusive growth of the country.
9. The banks authority stated that they have no option but to shift the burden to customers.
10. UIDAI has defended the bank concern and said that the licence fee levied are very nominal.