eSigns latest victim of SC’s aadhaar verdict, fintech firms may take a hit

BENGALURU: The Supreme Court’s judgement on Aadhaar has got another victim. Electronic signatures, used by consumers to sign legal documents digitally, could stop soon, causing massive disruption in the financial services space, said industry executives.

After electronic Know Your Customer (e-KYC) and electronic NACH (National Automated Clearing House) mandates for customer verification, electronic signatures (eSigns) validated through Aadhaar have now emerged a contentious topic post the judgement barring private enterprises from accessing the biometric database.

Currently, fintech companies use eSign as a service that consumers can use to digitally sign documents needed for availing of financial services. This lets the companies avoid paper documentation and bring operational efficiency. But the court order raises questions over the legal validity of the service, since the entities that issue eSign certification capture Aadhaar numbers for customer verification.

Leave a Reply