SDG 8: Decent Work and Economic Growth
SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Electronics & Information Technology
The Unique Identification Authority of India (UIDAI) has launched a new framework to onboard Cooperative Banks, enabling them to deliver Aadhaar-based authentication services. Developed in consultation with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks, the framework will cover all 34 State Cooperative Banks (SCBs) and 352 District Central Cooperative Banks (DCCBs).
Under this model, only SCBs will be registered with UIDAI as Authentication User Agencies (AUA) and eKYC User Agencies (KUA), while DCCBs will use their SCBsβ infrastructure. This reduces duplication, cuts costs, and simplifies the adoption process. Cooperative banks can now offer faster and more secure services, including biometric eKYC and face authentication, aiding account opening particularly in rural and semi-urban areas. Direct benefit transfers and welfare payments can also be credited directly to cooperative bank accounts using Aadhaar.
The framework further enables cooperative banks to leverage Aadhaar Enabled Payment System (AePS) and Aadhaar Payment Bridge, strengthening last-mile digital financial inclusion and enhancing the role of cooperatives in Indiaβs banking ecosystem.
Relevant question for policy stakeholders: How can Aadhaar-enabled services in cooperative banks reshape financial inclusion, governance, and cost structures in Indiaβs rural credit institutions? What additional instruments can catalyse this move?
Follow the full news here: https://www.uidai.gov.in/images/Press_Release_20.pdf