Ban on Aadhaar linking may crimp growth of financial players?

The mess created by Aadhaar card or UIDN is not leaving us at peace. Everyday there is some or other news in the media about its linking and not linking. In September 2018 the Supreme court declared the government's pet project Aadhaar scheme as constitutionally valid but refrain its linking with bank accounts, mobile phones and school admissions.

It may not be necessary to link Aadhaar with school admissions but for linking with bank accounts will be easy for both the banks and the customers. Linking Aadhaar card is easy method of verification in the point of view of banks. As the credentials of the customer who are opening the account are already verified by Adhaar authorities, so the bank's time and money will be saved.

The banks and financial institution now may return to the older method of verification, which will take more time. And the financial institutions have to spend more on verification of the customers. So the running cost will increase.

Moreover curtailing the fraud and cheating will be a problem now as the customer verification may not be up to the level of Adhaar numbers. Accuracy of the testimonial of the customers will be a problem now.

The turnaround time for the loans may increase as the verification will have to be done physically. And also work load will increase in banks and financial institutions as there will be more paper works.

Based on Adhaar card the eKYC form filling was done digitally. Now without Adhaar linking it is time consuming even for the customers.

Definitely Ban on Aadhaar linking may crimp growth of financial players in some extent.

image source - courtesy linkaadharcard.com