National Payments Corporation of India (NPCI) has given an official notifications and alerted to all banks, ordering them to stop all Aadhaar transactions, which are done via Unified Payments Interface (UPI) and Immediate Payment System (IMPS) platforms.
This immediate ban on Aadhaar powered cashless payments has been approved by a steering committee, which includes 18 banks and non-bank financial entities such as State Bank of India, HDFC Bank, Citibank, Maharashtra Gramin Bank, One Mobikwik Systems and Paytm Payments Bank.
Aadhaar Payments Have Been Banned :-
‘Pay to Aadhaar’ is an additional feature for users of IMPS and UPI based payment platforms. When a user click on ‘Pay to Aadhaar’, the money can be instantly transferred to any Aadhaar number.
Once the money is transferred, the bank account linked with that Aadhaar can retrieve the money, or use it for other cashless transactions.
Pay To Aadhaar facility has been ordered to be banned starting August 31st, 2018.
The notification from NPCI said, “All member banks should remove this functionality both as remitter and beneficiary. Also, all interfaces currently offering this functionality, such as UPI apps and third-party apps, should remove this option from their respective apps by August 31, 2018,”
Why Aadhaar Based Payments Is Being Stopped :-
The Aadhaar number is directly linked with the bank accounts, and as per NPCI, this can pose a security threat to all users…….Read More>>