UIDAI unveils Aadhaar-based authentication framework for Cooperative Banks to benefit across India

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.