KYC authentication row: Paytm ends Rs 200 cash back offer for Aadhaar number

The company also assured its consumers that all user information was securely encrypted on Indian servers as per applicable guidelines.

Published: 30th March 2018 03:42 AM  |   Last Updated: 30th March 2018 03:42 AM   |  A+A-

Representational picture | Reuters

By Express News Service

HYDERABAD: Digital payments major Paytm on Thursday took down its Rs 200 cash back offer for customers providing their Aadhaar number for KYC authentication. The move came after Express reported on Wednesday that the offer was available only to customers opting to give their 12-digit unique ID.

However, responding to the report that also mentioned a set of terms & conditions published by the app seeking consent of users to share their information with ‘affiliates’ and store the same in servers ‘inside or outside India’, Paytm claimed that the T&C cited by Express were “defunct and non-relevant.”

The company also assured its consumers that “all user information was securely encrypted on Indian servers as per applicable guidelines.” However, the terms & conditions the company claimed to be “defunct” was available on the app at least till Wednesday night. Further, an official spokesperson of the company who was contacted by Express on Wednesday, before the report was published, did not deny the T&C but refused to comment on the same.  On Thursday, the app also removed its offer proving cash incentive for consumers sharing their Aadhaar number.

Supreme Court Lawyer and an expert on cybersecurity laws, Neeraj Arora, had this to say, “When you are giving T&C, you have to abide by the security practices. There should be a limit on data collection. At present, they are in violation of Indian laws, especially the Information Technology (Reasonable Security practices and procedures and sensitive personal data or information) Rules, 2011.”

“When you are collecting personal data -- and information contained in Aadhaar is personal information -- then there is a legal obligation. They cannot put T&C by their choice because the law puts a clear limit on what information can and cannot be collected,” said Arora. The collection of Aadhaar number by Paytm is only for authenticating KYC and not with any delivery of public service.  A consumer has right to make a complaint and claim damages if the data has been misused under Section 43 of the IT Act,” he added.

Stay up to date on all the latest Telangana news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp