A technical outage in the Digilocker system has disrupted the onboarding process for several fintech companies, causing delays in verifying users’ documents. The issue, which affected the digital platform used for secure storage and sharing of documents, has caused significant setbacks in the customer acquisition process for fintech firms that rely on Digilocker for KYC (Know Your Customer) verification.
This disruption has drawn attention to the vulnerabilities in digital infrastructure and the dependence of many industries on government-backed digital services. Several fintech companies have expressed frustration, with some users experiencing delays in account activations and financial transactions.
Digilocker, managed by the Ministry of Electronics and Information Technology (MeitY), is an essential service for various sectors that rely on secure document verification. The government has yet to issue an official statement, but authorities are working to resolve the issue and restore normal service. Meanwhile, affected companies are exploring alternative solutions to mitigate further delays.