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, are 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 integrate through 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.
What is e-KYC Setu?
Author
