Aadhaar e-signs see severe decline in volumes over regulatory uncertainty

The regulatory uncertainty stems from frequent changes in rules regarding the use of Virtual ID by companies

For corporate India, electronic authentication and e-signatures were supposed to ease customer onboarding and verification. However, frequent changes in regulations by the Unique Identification Authority of India (UIDAI) have meant that companies are finding it difficult to depend on Aadhaar as of now. 

Aadhaar-based e-signatures were once considered the gold standard of reliability to onboard and verify customers in a paperless manner. With the launch of Aadhaar e-sign, companies saw their costs go down significantly and the chance of fraud reduced as each signature is digitally authenticated against the UIDAI database. 

However, use of e-sign has witnessed a severe decline in volumes,