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SC verdict on Aadhaar could upend KYC for online lenders in India
Business
Published on 24 April 2026
Private firms may need new KYC paths now
India’s Supreme Court ruled that private entities can’t compel people to share Aadhaar data for KYC authentication. The decision could force online lending companies to rethink customer onboarding and verification processes, potentially raising compliance costs and changing risk checks. Lenders may need to adopt alternative KYC methods or obtain explicit consent, reshaping how fast loans get approved.
- SC bars private firms from forcing Aadhaar sharing for KYC
- Online lenders may have to redesign onboarding and verification
- Alternative KYC options and consent processes could become necessary
- Compliance costs and approval timelines may be affected
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times