Customers' aversion to e-KYC verification could make process more expensive

Industry experts said despite the ruling, Aadhaar might still be the preferred route of on-boarding since it was inexpensive and convenient

If customers are reluctant to do an electronic-Know Your Customer (e-KYC) verification, banks will now have to offer them other options. This is likely to make the process more expensive, feel bankers.

With the Supreme Court (SC) on Wednesday ruling that private entities cannot ask customers for Aadhaar details, financial institutions — always vocal about the benefits of seeking biometric number for verification — fear more expenses. They are also awaiting instruction from regulators to see what steps can be taken for the future.