A week after the Supreme Court (SC) barred private companies from using Aadhaar-based verification, telecom players and fintech companies are in a fix. While eKYC through Aadhaar has completely stopped, the confusion over data earlier collected through Unique Identification Authority of India database prevails. Companies are scrambling to get their own legal version of the order as going back to earlier method of physical verification is bound to increase costs manifold. According to estimates, the cost for verification of new mobile user will shoot up to Rs 150, up from Rs 15-20 per user now. 

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The eKYC process through Aadhaar allowed real time verification making the process a matter of just a few minutes as against 24-48 hours taken for manual verification depending upon the location. Some believe that private entities can use eKYC, if a customer is willing to share it, or the Aadhaar QR code which does not use biometric details. 

The ball is in the court of respective ministries. While it is the department of telecommunications for telecom players, it’s the Reserve Bank and Sebi for banks, mutual funds and e-wallet firms. Road ahead may be bumpy for private players who were relying completely on eKYC through Aadhaar.