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Key Points

The Unique Identification Authority of India (UIDAI) has introduced a groundbreaking framework for cooperative banks to leverage Aadhaar-based authentication services. This innovative approach will significantly enhance digital inclusion and streamline banking processes, particularly in rural and semi-urban regions. The new system allows cooperative banks to offer easier account opening, biometric verification, and direct welfare payment services. By simplifying technological infrastructure and reducing costs, this framework marks a crucial step in expanding financial accessibility across India.

Key Points: UIDAI Unveils Aadhaar Authentication for Cooperative Banks

  • UIDAI registers state cooperative banks as authentication agencies
  • Framework covers 34 state and 352 district cooperative banks
  • Enables biometric eKYC and face authentication services
  • Promotes digital transactions in cooperative banking sector
2 min read

UIDAI unveils Aadhaar-based authentication framework for cooperative banks

UIDAI launches new framework enabling cooperative banks to use Aadhaar services, boosting digital inclusion and last-mile banking across India.

"Adopting Aadhaar services is now easier and less expensive - UIDAI Official"

New Delhi, Aug 21

The Unique Identification Authority of India (UIDAI) on Thursday rolled out a new framework to onboard cooperative banks and enable them to deliver Aadhaar-based authentication services to mark the International Year of Cooperatives, the Ministry of Electronics and IT said on Thursday.

The development will give a strong push to last-mile banking and digital inclusion.

The framework has been developed in close consultation with the Ministry of Cooperation, the NABARD, the NPCI and cooperative banks. It will cover all 34 state cooperative banks (SCBs) and 352 district central cooperative banks (DCCBs) across the country, the Ministry said.

Adopting Aadhaar services is now easier and less expensive under the new system.

According to the ministry, the UIDAI will only register state cooperative banks as eKYC User Agencies (KUA) and Authentication User Agencies (AUA).

The DCCBs can seamlessly use the Aadhaar authentication application and IT infrastructure of their respective SCBs.

This eliminates the need for the DCCBs to develop or maintain separate IT systems, saving costs and ensuring smoother operations, the ministry stated.

Cooperative banks will be able to use Aadhaar-enabled services through this framework to offer quicker, safer, and easier customer onboarding.

Account opening will be simpler with services like biometric eKYC and face authentication, particularly in rural and semi-urban areas.

The ability to use Aadhaar to directly credit welfare and subsidy payments into their cooperative bank accounts will also benefit customers.

To further enhance digital transactions and promote financial inclusion in the cooperative sector, the framework also gives cooperative banks the authority to offer services like the Aadhaar Payment Bridge and the Aadhaar Enabled Payment System (AePS).

Cooperative banks will continue to be essential to India's financial system thanks to this important step in extending Aadhaar's influence and reach.

- IANS

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Reader Comments

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Priya S
Great initiative but I hope they ensure proper data security measures. Aadhaar contains sensitive information and cooperative banks need robust cybersecurity systems before implementing this.
Vikram M
Finally! This will help so many farmers and small business owners in tier 2/3 cities. Direct subsidy transfers to cooperative bank accounts through Aadhaar will reduce corruption and delays. Jai Hind! 🇮🇳
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Sarah B
As someone working in digital banking, this is a brilliant move. The cost savings for DCCBs by using SCB infrastructure makes so much sense. Hope the implementation is smooth across all states.
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Ananya R
Face authentication in rural areas? Hope they've considered poor internet connectivity and older people who might struggle with technology. The idea is good but execution needs careful planning.
M
Michael C
This integration with AePS and APB is fantastic! Will help bring millions into the formal banking system. Digital India making real progress in the cooperative sector. 👏

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