Withdrawal Of eKYC Translates Into Higher Cost For Bank Customers

After the Supreme Court in its ruling has asked private companies not to use eKYC modes for customer verification, it's now become difficult to get savings and other deposits account opened via online means. Similar is the case with loan processing which has now been rendered difficult through varied apps which earlier was a seamless exercise.

Now, with the ruling, banks have been forced to go by the time-consuming process and this has indeed pushed the financial industry back by some 7-8 years.

To mitigate such an issue as eventually the increased cost of operation will be passed as higher fees to customers, there can be some solution routed through the law. Such as customer's identity can be verified using his or her video i.e. indeed accompanied by a valid ID proof. Also, customer can be given a choice to either make of his digital aadhaar-based KYC or physical or paper-based process.

Another way can be a formation of a central KYC such that the validity of the customer approaching the bank for any of the banking services can be checked then and there with no delay using this central KYC platform.

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