Apex court verdict on Aadhar would affect Regtech companies in India

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a Contributing Editor at Regtechtimes, recognized for his authoritative reporting and analysis on financial crime, espionage, and global sanctions. His work combines investigative depth with geopolitical context, offering readers clear insights into the evolving landscape of compliance, risk, and international security. With a strong focus on sanctions imposed by OFAC and regulatory bodies across the US, UK, and Australia, Mayur is widely regarded as a subject-matter expert in the global sanctions ecosystem. He regularly contributes analysis on geopolitical developments—particularly China’s strategic influence, intelligence operations, and the shifting dynamics of global power. Mayur has authored seven books on financial crimes, money laundering, and corporate compliance, reinforcing his position as a leading voice in the regtech and financial intelligence community. He is also the architect of India’s first certification program in Anti-Money Laundering, a landmark initiative that helped shape professional AML training standards in the country. His recent work includes deep dives into sanctions regimes, illicit finance networks, state-sponsored espionage, and emerging threats across the global financial system, making him a trusted source for experts, journalists, and policymakers seeking clarity in a rapidly changing world.

Aadhar is considered to be one of the most important documents in the process of Knowing Your Customers. Banks and Telecom companies, ecommerce companies, private schools found blessing in Aadhar as it enabled the online kyc mechanism. However, according to the verdict of Supreme Court, now the private companies cannot ask for biometric and other data from consumers for their services. Section 57 of the Addhar Act was revoked by the Supreme court on 26.09.2018.

This will have a significant impact on the Regtech companies in India which were designing their ambitious products based on the APIs provided by the Aadhar. This is significant setback. However, the interesting part is the Supreme court allowed linking of PAN with Aadhar, this would help the regtech companies to come out with their innovative solutions around the Permanent Account Numbers.

Additionally, Supreme court directed the schools to not make Aadhar mandatory for the admissions. Supreme court eased all the possible compulsory aspects of the scheme and made the same optional for the Indian Citizens.

The supreme court not only stopped on this, it went further to quash the section 33(1) and revoked the permissions given to security agencies. Many security agencies involved in the background verification agencies were allowed to access the Aadhar data.

Any party with valid Adhar number could complete the process of the KYC in few minutes and it helped the banks and other companies to raise the level of service to new highs. However, the data breaches showed that not all is well with the Adhar system.

This verdict is expected to stir up the whole regtech community in India.

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