Recently, supreme court in a landmark judgment, declared the section 57 of the Aadhaar act as unconstitutional. This is specifically important, as this section enabled the private entities to use the Aadhaar system for eKYC (Know Your Customer). As an impact of this order, the private entities (mobile operators and banks), now have to resort to physical means of validating customers before they enroll, thereby incurring more cost, time and the added risk of identity theft (caused by the possibility of connivance at the ground level).
Aadhaar Act (Section 57)
For the purpose of this discussion, the Section 57 of the Aadhaar Act is reproduced below.
