In a report published in the Economic Times today, Wriju Ray - CBO at IDfy - spoke about the lack of use cases for eSign that might lead to it becoming redundant for the industry.
"I think what people will also realise is that for most use cases, eSign is not really needed, so either the architecture of eSign will change to allow alternatives to eKYC or eSign will become redundant," said Wriju Ray, co-founder at IDfy.
The article highlights industry reactions to the UIDAI's increase in per transaction cost of eKYC, which leads to an approximately 5 times increase in eSign cost using the eKYC framework. This is likely to most impact start-ups and early-stage entrepreneurs.
“When eKYC is clubbed with eSign there is a need to relook into the pricing, ₹25 for electronic signature for every document becomes too much,” said Sanket Nayak, founder of Digio, which provides eSign facilities for financial institutions and others.
While some are lamenting this increase in eKYC cost, others are looking at the silver lining. Especially those who are bearing the prohibitively expensive physical KYC costs.
“While it is true that our cost will go up, what it gives us is higher operational efficiency which is what I am okay with, since the alternate is physical signatures which makes the entire process cumbersome and expensive,” said Nithin Kamath, CEO, Zerodha.
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