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ARTICLE · 15 OCTOBER 2018

The Aadhaar Judgment And Recent Policy Changes: What Does It Mean For Fin-Tech Companies?

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At the end of September, the Supreme Court of India, in Justice Puttaswamy (Retd.) and Anr. v Union of India and Ors., upheld the validity of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 ...

IndiaTechnology
Suneeth Katarki
Suneeth Katarki
Namita Viswanath
Namita Viswanath
Savithran Ramesh
Savithran Ramesh
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1. INTRODUCTION

At the end of September, the Supreme Court of India, in Justice Puttaswamy (Retd.) and Anr. v Union of India and Ors. (the "Aadhaar Case"),1 upheld the validity of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (the "Aadhaar Act") while striking out parts of the Aadhaar Act which permitted private companies and other body corporates to use the Aadhaar number of an individual for establishing the identity of an individual for any purpose.

The effect of this judgement is that companies are no longer permitted to use the authentication and e-KYC facilities authorized under the Aadhaar (Authentication) Regulations, 2016, (the "Authentication Regulations") which had become a preferred method for authenticating and establishing identity details of individuals, when transacting in a paperless format.

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