SC's Aadhaar verdict rocks new-age digital cradle: All you need to know

Customer acquisition and servicing models in financial services will have to be reimagined

Business models based on the Aadhaar superstructure to on-board and service customers will be rocked to their foundations, with the Supreme Court (SC) striking down Section 57 of the Aadhaar Act.

 “Many customers were using Aadhaar as an essential proof of their place of residence whether to avail of SIM cards or to open bank accounts. The costs will go up, and just what alternative mechanism do you have to verify customer details for KYC (know-your customer) compliance?” asks Satyam Kumar, CEO of LoanTap. 

Harshil Mathur, CEO and co-founder of Razorpay, adds: “The cost of e-KYC verification was Rs 15 per person.