**Summary:**
The Ministry of Electronics and Information Technology (MeitY) and the Unique Identification Authority of India (UIDAI) have launched a new Aadhaar-based authentication framework to integrate cooperative banks across India, effective August 21, 2025. This initiative aims to promote financial inclusion and last-mile banking, particularly in rural and semi-urban areas, in alignment with the International Year of Cooperatives. The framework, developed in consultation with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks, will encompass all 34 State Cooperative Banks (SCBs) and 352 District Central Cooperative Banks (DCCBs).
Under the new system, SCBs will be registered with UIDAI as Authentication User Agencies (AUA) and eKYC User Agencies (KUA), allowing DCCBs to utilize the Aadhaar authentication application and IT infrastructure of their respective SCBs, reducing costs and streamlining operations. This framework will enable cooperative banks to offer faster and more secure customer onboarding through services like biometric eKYC and face authentication. It will also facilitate direct subsidy and welfare payment transfers via Aadhaar and expand services such as the Aadhaar Enabled Payment System (AePS) and the Aadhaar Payment Bridge.
For further information, contact: Dharmendra Tewari, Navin Sreejith, or Vivek Vishwash. Release ID: 2159300.
Key Entities Referenced
Ministry of Electronics IT: The Indian government ministry responsible for electronics and information technology.
UIDAI: Unique Identification Authority of India, the authority responsible for Aadhaar.
Aadhaar: A 12-digit unique identity number issued to all Indian residents.
Cooperative Banks: Financial institutions in India operating on a cooperative basis.
India: The country where the policy is being implemented.
Ministry of Cooperation: A ministry in the Government of India focused on cooperative societies.
NABARD: National Bank for Agriculture and Rural Development, an apex development finance institution in India.
State Cooperative Banks (SCBs): State-level cooperative banks in India.
Ministry of Electronics & IT
UIDAI unveils Aadhaar-based authentication
framework for Cooperative Banks to benefit across
India
Over 380 Cooperative Banks to leverage Aadhaar
services under new UIDAI framework and will ensure
financial inclusion
New Framework Formulated after Extensive
Consultations with Ministry of Cooperation, NABARD
and other stakeholders
Posted On: 21 AUG 2025 5:59PM by PIB Delhi
To mark the International Year of Cooperatives, the Unique Identification Authority of India (UIDAI) has
rolled out a new framework to onboard Cooperative Banks and enable them to deliver Aadhaar-based
authentication services, giving a strong push to last-mile banking and digital inclusion.
The framework has been developed in close consultation with the Ministry of Cooperation, NABARD, NPCI
and cooperative banks. It will cover all 34 State Cooperative Banks (SCBs) and 352 District Central
Cooperative Banks (DCCBs) across the country.
Under the new system, the process of adopting Aadhaar services has been made simpler and cost-effective.
Only the State Cooperative Banks will be registered with UIDAI as Authentication User Agencies (AUA) and
eKYC User Agencies (KUA). The DCCBs can seamlessly use the Aadhaar authentication application and IT
infrastructure of their respective SCBs. This eliminates the need for DCCBs to develop or maintain separate
IT systems, saving costs and ensuring smoother operations.
Through this framework, cooperative banks will be able to leverage Aadhaar-enabled services to provide
faster, more secure, and hassle-free customer onboarding. Services such as biometric eKYC and face
authentication will make account opening easier, especially in rural and semi-urban regions. Customers will
also benefit as subsidies and welfare payments can be directly credited into their cooperative bank accounts
using Aadhaar.
Additionally, the framework empowers cooperative banks to extend services like the Aadhaar Enabled
Payment System (AePS) and the Aadhaar Payment Bridge, further strengthening digital transactions and
advancing financial inclusion in the cooperative sector.
This step marks a significant milestone in expanding Aadhaar’s reach and impact, ensuring that cooperative
banks continue to play a vital role in India’s financial ecosystem.
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Dharmendra Tewari/ Navin Sreejith/ Vivek Vishwash(Release ID: 2159300)