· E-verification of AADHAR card can be done by the public sector bodies only .
· Earlier under Section 57 of the AADHAR Act private companies were allowed to use AADHAR for verification purpose.
· The Supreme Court of India has struck down Section 57 of the AADHAR Act.
· Fintech companies have demanded clarification from the government for allowing regulated entities such as banks and non-banking financial companies to use AADHAR for eKYC in case of voluntary submission by customers.
· Fintech Companies are highly dependent on AADHAR based e-verification.
· The physical verification or paper based verification is very costly as compared to e-verification.
· AADHAR based e-KYC provides the companies the options to extend credit , offer savings and investment products and insurance.
· E-KYC saves loan disbursement costs and time.