India Inc. Braces for Sixfold Jump in Costs as Database Use Ends
- Companies had developed business models around using Aadhaar
- Government looking at alternates; asks industry not to panic
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Indian telecom companies and banks are bracing for a sixfold jump in costs to verify antecedents of its customers after the use of a biometric database of residents was barred for all but the government.
Companies were using the database to accelerate the process of opening bank accounts, disbursing loans and acquiring mobile phone customers. India’s top court on Sept. 26 ruled that the digital-identity program, known as Aadhaar, is to be only used by the state to identify beneficiaries of welfare programs and disburse subsidies.