Thursday
October 25
2018

Report: Ban on Aadhaar linking may crimp growth of financial players in India

The Supreme Court order restricting banking and finance companies along with telcos from using Aadhaar data is likely to hamper balance-sheet growth of consumer finance companies in the short-term, says a report.

Last month, the Supreme Court had declared the government’s flagship Aadhaar scheme as constitutionally valid but struck down some of its provisions including its linking with bank accounts, mobile phones and school admissions.

According to an India Ratings report, the order would increase operating cost, turnaround time in loan disbursement as well as fraud risk especially for retail lenders who have credit verification processes built around technology.

Photo courtesy of Biswarup Ganguly.

Source: Economic Times (link opens in a new window)

Categories
Finance, Technology
Tags
digital identity, digital inclusion, digital revolution, emerging economies, emerging markets, mobile banking, mobile finance, technology