The Central government has made it mandatory for all financial institutions, including banks, to verify and link Aadhaar of the customers with their accounts
Web Report
NEW DELHI — The Supreme Court on Thursday observed that Aadhaar cannot stop bank frauds, adding, officials seemingly are hand in glove with the fraudsters.
A five-judge constitution bench headed by Chief Justice Dipak Misra, which is examining the validity of Aadhaar scheme, said the biometric database is not a solution to effectively discourage bank scams, as there is no doubt about the identity of the fraudsters.
“The bank knows whom it is giving loan to and it is the bank officials who are hand in glove with the fraudster. Aadhaar can do little to stop it,” said the bench.
The Central government has made it mandatory for all financial institutions, including banks, to verify and link Aadhaar of the customers with their accounts.
The apex court’s observation is significant as it slams the government which is already entangled in the recent spate of multi-crore financial frauds plaguing the banking sector.
