A visitor gives a thumb impression to withdraw money from his bank account with his Aadhaar or Unique Identification (UID) card during an event held to promote digital payment in Hyderabad. Photo: AFP / Noah Seelam

Digital payments companies in India see the recent Supreme Court verdict barring private companies from seeking data from Aadhaar, the country’s national biometric identity program, plan to take up the matter with the central government. The Supreme Court had barred private companies access to Aadhaar citing privacy concerns.

Aggrieved companies may lobby the finance and law ministries to formulate a law that will allow them access to the biometric database, Mint newspaper reports.

They argue that the verdict will have an adverse impact on their customer verification process. Prior to the Supreme Court ruling, Fintech start-ups selling loans, mutual funds and insurance, as well as payments banks used Aadhaar authentication to verify customer details.

The Supreme Court on Wednesday had termed as ‘unconstitutional’ a portion of Section 57 of the Aadhaar Act, which enabled corporations and individuals to seek client authentication through use of the Aadhaar database.

Digital payments companies are holding consultations among themselves and want the government to find a way to allow them to use the Aadhaar database for customer verification, while taking into consideration privacy concerns identified by the Supreme Court.

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