The companies have sought a legislation that reinstates their ability for the companies to ask for Aadhaar, said the report.
Section 57 allowed any “body corporate or person” or private entity to demand Aadhaar from citizens for the purpose of identification.
The apex court ruled that linking of Aadhaar cannot be made compulsory for services such as bank accounts, mobile connections or school admissions.
“Though the verdict is not affecting us, we believe that this will be a regressive move for fintech companies as they will eventually move to the traditional mode of verifying individuals and thereby the turnaround time for processing the loan will increase to a considerable extent,” said Bhavin Patel, co-founder and CEO of LenDenClub, a peer-to-peer lender, told the paper.
Finance Minister Arun Jaitley, in a media briefing, claimed that use of Aadhaar by private companies needs legislative backing.
Credit : CNBC TV 18