A major step toward strengthening the cooperative banking sector was taken on Friday as Dr. Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, participated in a workshop on onboarding cooperative banks to Aadhaar Enabled Payment Services (AePS).
Organized in New Delhi under the revised framework of the Unique Identification Authority of India (UIDAI), the initiative is aimed at making cooperative banks stronger, modern, and more empowered financial institutions.
Addressing the gathering, Dr. Bhutani said the move marks a milestone in realizing the vision of “Sahkar se Samriddhi” championed by Prime Minister Narendra Modi and carried forward under the leadership of Union Home Minister and Minister of Cooperation Amit Shah.
By integrating Aadhaar-enabled services, cooperative banks will not only expand their role as self-reliant institutions but also enhance their capacity to deliver digital services, he added. The initiative is expected to significantly boost financial inclusion across rural and semi-urban India.
The workshop saw participation from UIDAI CEO Bhuvnesh Kumar, NABARD Chairman Shaji K.V., senior officers from the Ministry of Cooperation, NPCI, NABARD, and UIDAI, along with representatives of all 34 State Cooperative Banks (StCBs) and 351 District Central Cooperative Banks (DCCBs). More than 500 participants also joined virtually.
Bhuvnesh Kumar highlighted that the revised UIDAI framework is forward-looking and will make it easier for cooperative banks to adopt Aadhaar-enabled authentication and eKYC services. Shaji K.V. assured that NABARD would extend complete support to cooperative banks for smooth implementation and help them leverage the system for the benefit of their members.
Until now, cooperative banks had largely been excluded from Aadhaar authentication due to compliance hurdles and high costs. To address this, UIDAI, in consultation with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks, has designed a simplified framework. The framework brings all 34 StCBs and 351 DCCBs under its ambit.
Under the new system, only the State Cooperative Banks will register directly with UIDAI as Authentication User Agencies (AUAs) and eKYC User Agencies (KUAs). The District Central Cooperative Banks will access Aadhaar authentication applications and IT infrastructure through their respective StCBs. This model eliminates the need for each DCCB to build independent IT systems, thereby reducing costs and making the adoption process more efficient and streamlined.
The initiative is seen as a transformative reform that will enable cooperative banks to integrate with India’s expanding digital payments ecosystem and strengthen their role in last-mile banking and inclusive growth. 
