Daijiworld Media Network - New Delhi

New Delhi, Aug 21: In a significant move aimed at boosting digital inclusion and rural banking, the Unique Identification Authority of India (UIDAI) has launched a new framework that allows cooperative banks to offer Aadhaar-based authentication services across the country.

Announced by the Ministry of Electronics and IT on Thursday to mark the International Year of Cooperatives, the framework was developed in collaboration with the Ministry of Cooperation, NABARD, NPCI, and cooperative banking institutions. It will initially cover all 34 state cooperative banks (SCBs) and 352 district central cooperative banks (DCCBs), streamlining their access to Aadhaar authentication and eKYC services.

Under the new system, only SCBs will be directly registered as Authentication User Agencies (AUA) and eKYC User Agencies (KUA) by UIDAI. DCCBs will be able to use the Aadhaar infrastructure of their parent SCBs, eliminating the need to build and maintain costly independent IT systems.

This change is expected to cut operational costs and make onboarding of rural and semi-urban customers faster, safer, and more efficient through biometric eKYC and face authentication. Aadhaar will also facilitate direct crediting of subsidies and welfare payments into cooperative bank accounts.

Additionally, cooperative banks will be able to offer services such as the Aadhaar Payment Bridge and the Aadhaar Enabled Payment System (AePS), enhancing their role in India's financial ecosystem and accelerating the nation’s push for inclusive digital banking.