Can Banks, Schools, Mobile Companies Ask for Aadhaar Card as Mandatory? Yes Bank Ordered To Pay INR 50,000 Compensation To Firm Over Delay in Opening Account Without Aadhaar Card, Know the Rules
Wondering if private entities such as banks, schools, colleges and mobile companies among others can ask for Aadhaar Card as a mandatory requirement. Scroll below to know the rules as Bombay High Court orders Yes Bank to pay INR 50,000 compensation to a company over delay in opening bank account without Aadhaar card.
Mumbai, July 1: Recently, the Bombay High Court ordered Yes Bank to pay INR 50,000 to compensate Microfibers Pvt Ltd for delaying opening a bank account after insisting on an Aadhaar card. It is learned that the private bank insisted on an Aadhaar card despite the interim relief granted by the Supreme Court at the time. Although the private bank had complied and opened the account in January 2019, the bench of Justices MS Sonak and Jitendra Jain said that they had failed to do so between April and September 2018, a period during which Aadhaar was not mandatory.
The Bombay HC made these observations while hearing a petition filed by the company in June 2018. Microfibers Pvt Ltd had filed the petition before the court after Yes Bank refused to open a bank account without Aadhaar. "There was no justification for not opening the Bank account after 26th September 2018," the judges said while referring to the Supreme Court's verdict in another matter. In this matter, the apex court struck down the requirement for an Aadhaar card to open bank accounts. The Bombay HC has now directed Yes Bank to pay the compensation amount in eight weeks. Supreme Court Rejects Aadhaar Card as Proof of Date of Birth, Favours School Leave Certificate.
With the Bombay High Court slapping a fine on Yes Bank, it's important to know if banks, schools, colleges, and mobile companies can require the Aadhaar card as a mandatory document. Scroll below to learn more.
Can Banks, Schools, Colleges, Mobile Companies Ask for Aadhaar Card as Mandatory Requirement?
It must be noted that in 2018, the Supreme Court struck down Section 57 of the Aadhaar Act. It is worth noting that Section 57 of the Aadhaar Act allowed the sharing of data with private entities. The apex court passed the order after 31 petitions challenged the constitutional validity of Aadhaar on the grounds that it violated the right to privacy of citizens. The top court's order of 2018 meant private bodies, including telecom companies, private banks, e-commerce firms, and other firms, could not ask for biometric and other data from consumers to provide their services. Aadhaar Verdict Highlights: Here are Key Takeaways From Supreme Court Judgment.
Bombay HC Imposes Fine on Yes Bank Over Delay in Account Opening Due to Aadhaar Card Requirement
In simple terms, the Supreme Court placed restrictions on private entities for insisting that customers provide their Aadhaar number for verification and authentication purposes. Another highlight of the Supreme Court's 2018 judgment was that the top court made the Aadhaar card mandatory to link Permanent Account Numbers (PAN) and for income tax filing, and deemed it voluntary for other services. In the Microfibers Pvt Ltd vs Yes Bank case, the company was represented by Niyam Bhasin. In a post on X, Bhasain said that the compensation awarded by the Bombay High Court against Yes Bank was for insisting on an Aadhaar card.
"Pls note: banks, mobile operators, schools, colleges, pvt company cannot ask for Aadhaar in lieu of section 57 Aadhaar Act being struck down.Else They r liable for damages," the lawyer said.
(The above story first appeared on LatestLY on Jul 01, 2025 11:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).