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Corporate Laws Central Ministry of Finance Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Servic

UIDAI unveils Aadhaar-based Authentication Framework for Cooperative Banks to Benefit Across India

21-Aug-2025 | NA

UIDAI has issued a press release announcing the launch of an Aadhaar-based authentication framework for cooperative banks across India. This initiative aims to enhance last-mile banking and promote digital inclusion.

The framework was developed in consultation with the Ministry of Cooperation, NABARD, NPCI, and various cooperative banks. It encompasses 34 State Cooperative Banks (SCBs) and 352 District Central Cooperative Banks (DCCBs) nationwide.

Only SCBs will be registered with UIDAI as Authentication User Agencies (AUA) and eKYC User Agencies (KUA). DCCBs will utilize the Aadhaar infrastructure of their respective SCBs, which will help reduce costs and simplify the adoption process.

The Aadhaar services provided under this framework, including biometric eKYC, face authentication, Aadhaar-enabled Payment System (AePS), and the Aadhaar Payment Bridge, will facilitate faster, secure, and hassle-free customer onboarding, particularly in rural and semi-urban areas.

This initiative is expected to improve the direct credit of subsidies and welfare benefits into cooperative bank accounts, thereby strengthening the role of cooperative banks in advancing financial inclusion.

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