Cooperative Banks Set to Expand Digital Reach with Aadhaar-Enabled Services

New Delhi, September 19, 2025 — Dr. Ashish Kumar Bhutani, Secretary of the Ministry of Cooperation, took part in a workshop on the onboarding of Cooperative Banks for Aadhaar-enabled Payment Services, marking a significant step toward financial modernization in India. The event was attended by UIDAI CEO Bhuvnesh Kumar, NABARD Chairman Shaji K.V., senior officials from the Ministry of Cooperation, NPCI, and representatives of all 34 State Cooperative Banks (StCBs) and 351 District Central Cooperative Banks (DCCBs), along with over 500 participants joining virtually.

Delivering the keynote address, Dr. Bhutani highlighted that the initiative reflects the government’s vision of “Sahkar se Samriddhi,” championed by Prime Minister Narendra Modi and actively promoted by Union Minister of Cooperation Amit Shah. By integrating Aadhaar-enabled services, cooperative banks are expected to emerge as stronger, modern, and more empowered institutions, capable of offering secure digital services to their members.

The initiative will enable cooperative banks to operate as self-reliant financial institutions while significantly expanding financial inclusion in rural and semi-urban areas. Dr. Bhutani emphasized that the program aligns with the government’s broader goal of inclusive growth through cooperative institutions.

Bhuvnesh Kumar, CEO of UIDAI, described the revised framework as a forward-looking mechanism designed to simplify Aadhaar-based authentication and eKYC processes for cooperative banks. NABARD Chairman Shaji K.V. assured full support for the banks to effectively implement the framework.

Previously, many cooperative banks faced challenges in adopting Aadhaar authentication due to compliance and cost constraints. The new framework addresses these issues by registering only the State Cooperative Banks with UIDAI as AUAs and KUAs, allowing DCCBs to use their IT infrastructure for Aadhaar services. This streamlined approach ensures cost efficiency, improved accessibility, and a stronger push toward last-mile banking and digital inclusion across the country.

The framework will cover all 34 State Cooperative Banks and 351 District Central Cooperative Banks, setting the stage for a digitally empowered cooperative banking sector in India.