Banking reforms: Cooperative banks get Aadhaar-enabled services under simplified UIDAI framework; boost for rural inclusion
Announcing the initiative at a workshop in New Delhi on Friday, Cooperation Ministry Secretary Ashish Kumar Bhutani said the move will strengthen cooperative banks and enable them to serve rural and semi-urban India more effectively, PTI reported.“This will significantly expand the reach of financial inclusion to rural and semi-urban India, in line with the government’s vision of inclusive growth through cooperation,” Bhutani said, according to an official statement.The Unique Identification Authority of India (UIDAI), in consultation with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks, developed the streamlined system that addresses long-standing challenges.Under the revised model, only the 34 state cooperative banks (STCBs) will register directly with UIDAI as Authentication User Agencies (AUAs) and eKYC User Agencies (KUAs).
The 351 district central cooperative banks (DCCBs) will use the Aadhaar infrastructure of their respective state cooperative banks, avoiding the need for separate IT systems.UIDAI CEO Bhuvnesh Kumar called the new setup “a robust and forward-looking mechanism which will greatly facilitate cooperative banks across the country in adopting Aadhaar-enabled authentication and eKYC services.”Nabard Chairman Shaji KV assured full support to cooperative banks in adopting the framework.
The workshop was attended by representatives of all STCBs and DCCBs, with over 500 participants joining virtually.Officials said the revised system will cut costs, improve efficiency and expand the reach of Aadhaar-enabled payment and banking services to the last mile.
