The Ministry of Cooperation has introduced a more affordable and convenient onboarding framework for cooperative banks joining the Aadhaar Enabled Payment System (AePS), aimed at expanding doorstep banking and promoting financial inclusion.
Under the revised arrangement, license fees for onboarding will be linked to transaction volumes, making the facility more economical, particularly for smaller cooperative banks. Additionally, banks will receive three months of free pre-production access, allowing them to test the system and familiarise themselves with its functioning before going live.
The initiative will enable cooperative banks to offer Aadhaar-based biometric banking services to members at their doorsteps, reducing the need for customers to visit branches for routine transactions.
The move is expected to strengthen the digital capabilities of cooperative banks, improve accessibility in rural areas and bring secure, convenient banking services closer to ordinary members, particularly those in underserved communities.
