e‑KYC Setu is a digital system by NPCI (in partnership with UIDAI) that helps banks, mutual funds, and other RBI‑regulated organizations check a person’s identity securely using Aadhaar—without revealing their Aadhaar number. It makes signing up for financial services fast and paperless.
Why Was e‑KYC Setu Created?
NPCI built e‑KYC Setu so that regulated entities like banks and SEBI‑registered intermediaries can onboard customers digitally using Aadhaar, while ensuring the Aadhaar number remains hidden from the entity. This keeps identities private and KYC compliance simple.
How Does e‑KYC Setu Work?
When a bank or other regulator‑approved entity (called a Reporting Entity, RE) needs to verify someone’s identity:
- The RE sends a request through the e‑KYC Setu system.
- NPCI forwards it to UIDAI, the Aadhaar authority—without revealing the actual Aadhaar number to the RE.
- UIDAI verifies via OTP, fingerprint, iris, or face scan.
- RE receives only masked demographic data and a photo if needed.
Who Can Use e‑KYC Setu?
Regulated Entities (REs) under RBI, such as banks, NBFCs, mutual fund firms, portfolio managers, and other SEBI‑registered intermediaries—now officially permitted to use e‑KYC Setu for client onboarding.
Main Benefits of e‑KYC Setu
- Privacy First: Aadhaar number stays hidden. Only masked info is shared with the RE.
- Easy Onboarding: Entities can adopt using NPCI’s single‑window onboarding process.
- Flexible Integration: REs can choose between using SDKs for face/OTP authentication or web-based secure input, based on their use case.
- Operational Efficiency: Less paperwork, fewer manual steps, and reduced data handling burden for entities—making onboarding quicker and simpler.
