The Union Cabinet declared that it would seek approval from the Indian Parliament to amend laws that will allow banks and telecom companies to verify user details stored within the identification database.
Currently, fintech companies are writing to the ministry of electronics and information technology (MeitY) requesting inclusion of all regulated entities in the amendment that will be placed before Parliament.
These companies are hoping for the restoration of Aadhaar-based verification for their customers, a service they had to curtail after the Supreme Court struck down Section 57 of the Aadhaar Act. This section allowed corporate bodies to authenticate customers by capturing their biometrics or Aadhaar numbers and validating them against the Aadhaar database.
Fintech companies that could no longer access Aadhaar were unable to provide instant onboarding services to their customers.
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