Over the last six months, Indian bank customers have received Rs532 crores into their bank accounts. However, Rs12.02crores could not be credited successfully, as the respective bank accounts had an issue.
The primary reason for non-credit was closure of accounts. The Bank customers after seeding their Aadhaar numbers to the bank accounts subsequently went ahead and closed their accounts.
In an ideal situation, once the customer seeds his/her bank account with the Aadhaar number, should not close the account till the life-period of the subsidy credits.
However, the bank accounts have been closed and on receipt of the subsidy credit, the transaction is returned with the reason ACCOUNT CLOSED.
This effectively results in the subsidy amount not getting disbursed to the beneficiary.
To minimize such returns at the time of Credit File, NPCI has advised all APB System Participating Banks on closure of the Aadhaar seeded bank accounts, to deactivate such Aadhaar numbers in the NPCI Mapper.
The key advantage would be that the Subsidy amount is not returned with the reason ACCOUNT CLOSED. The respective Government Department too can contact the beneficiary, immediately on receipt of the information, rather wait for the transaction to be returned.
This would also reduce the over-all reject %, which is 2.25% at present.