The Unique Identification Authority of India (UIDAI) has introduced a new framework to onboard cooperative banks and enable Aadhaar-based authentication services, aiming to enhance last-mile banking and digital inclusion. Developed in collaboration with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks, the framework covers all 34 State Cooperative Banks (SCBs) and 352 District Central Cooperative Banks (DCCBs) nationwide. Under this system, only SCBs will be registered as eKYC User Agencies and Authentication User Agencies, allowing DCCBs to use the Aadhaar authentication infrastructure of their respective SCBs, reducing costs and simplifying operations. This framework facilitates faster, safer customer onboarding through biometric eKYC and face authentication, especially benefiting rural and semi-urban areas. It also enables direct crediting of welfare and subsidy payments into cooperative bank accounts via Aadhaar. Additionally, cooperative banks can offer services like the Aadhaar Payment Bridge and Aadhaar Enabled Payment System (AePS), promoting digital transactions and financial inclusion. This initiative marks a significant step in expanding Aadhaar’s reach within India’s financial ecosystem. (Updated 22 Aug 2025, 10:53 IST; source: link)