What Is the e‑KYC Setu System?

byPaytm Editorial TeamLast Updated: July 31, 2025
e‑KYC Setu is a secure digital KYC platform developed by NPCI in partnership with UIDAI. It enables regulated financial entities (under RBI, SEBI, IRDAI, PFRDA) to verify a customer’s identity via Aadhaar—without sharing the full Aadhaar number. The system simplifies onboarding using OTP or face authentication while maintaining privacy and reducing paperwork.
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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

  1. Privacy First: Aadhaar number stays hidden. Only masked info is shared with the RE.
  2. Easy Onboarding: Entities can adopt using NPCI’s single‑window onboarding process.
  3. Flexible Integration: REs can choose between using SDKs for face/OTP authentication or web-based secure input, based on their use case.
  4. Operational Efficiency: Less paperwork, fewer manual steps, and reduced data handling burden for entities—making onboarding quicker and simpler.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

FAQs

What is e‑KYC Setu?

It is a system developed by NPCI (in collaboration with UIDAI) that allows regulated entities to verify a client’s identity using Aadhaar without revealing the actual Aadhaar number.

Who can use the e‑KYC Setu System?

Only RBI‑regulated reporting entities, such as banks, NBFCs, mutual fund houses, and other SEBI‑registered intermediaries, are allowed to use it — now officially approved by SEBI.

How does e‑KYC Setu protect privacy?

It masks the Aadhaar number and shares only verified demographic details and photos (if needed) with the reporting entity.

How does an entity integrate with e‑KYC Setu?

Entities can onboard through NPCI’s single‑window process and choose between web or SDK methods for Aadhaar input and OTP/facial authentication.

What are the benefits for customers and firms?

Customers get faster, paperless onboarding. Firms reduce paperwork and complexity, making compliance smoother and more efficient.
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