The Unique Identification Authority of India (UIDAI) has asked digital payments companies to stop offering Aadhaar-based services on their platforms, after the Supreme Court held Section 57 unconstitutional, The Economic Times reported.
Private payments companies such as PayPoint, Eko India Financial Services and Oxigen Services have received notices from UIDAI in the last two days, the report said.
Sources familiar with the matter told the paper that UIDAI sent the letters only to non-banking companies licensed to provide prepaid payment services and not to banks or payment entities such as Paytm that have obtained banking licences.
The Supreme Court last month upheld Aadhaar to be constitutionally valid and ruled Section 57, the norm which let private companies insist on Aadhaar details of citizens, unconstitutional.
UIDAI, in a letter accessed by the paper, directed several payments companies to give the confirmation of the closure and furnish a plan on how they will exit the Aadhaar system.
“Since your organisation can no longer use Aadhaar-based authentication services… you may cease all operations with respect to Aadhaar-based authentication immediately, if not already done,” the letter sent on October 12 stated.
First Published: IST