Aadhaar authentication expands with Starlink, Cooperative Bank integrations

Aadhaar authentication is getting a high profile integration as the Unique Identification Authority of India (UIDAI) onboards Starlink. The Authority is working to expand authentication options in India, also unveiling an Aadhaar-based authentication framework for Cooperative Banks.

This month, UIDAI announced that Aadhaar face biometric authentications hit two billion with the authority pointing to the rapid increase, as it hit one billion just six months ago, as a sign of growing adoption by government, banks and other private sector service providers.

The Elon Musk-helmed satellite-based internet provider secured a permit to operate in India after agreeing to follow local laws, which includes security rules that prohibit copying or decrypting data overseas and forbidding the mirroring of Indian user traffic on systems abroad.

Director of Starlink India Parnil Urdhwareshe gathered with UIDAI CEO Bhuvnesh Kumar and and Deputy Director General Manish Bhardwaj to recognize the appointment of Starlink Satellite Communication Pvt Ltd as a Sub-Authentication User Agency and Sub-eKYC User Agency.

Starlink will leverage Aadhaar authentication for customer verification, which is supposed to ease such processes, making them easier and more secure with the aid of India’s digital ID system. The Department of Telecommunications (DoT) granted Starlink a unified license with the company required to establish earth station gateways in India to route communications between satellites and users.

Authentication framework for Cooperative Banks

To mark the International Year of Cooperatives, UIDAI has launched a new framework to onboard Cooperative Banks for Aadhaar-based authentication aimed at boosting digital inclusion and banking accessibility.

Developed in partnership with the Ministry of Cooperation, NABARD, NPCI, and cooperative banks, the initiative will cover all 34 State Cooperative Banks (SCBs) and 352 District Central Cooperative Banks (DCCBs) across India.

The framework simplifies the adoption of Aadhaar services and lowers associated costs. Under this model, only SCBs will be registered with UIDAI as Authentication User Agencies (AUAs) and eKYC User Agencies (KUAs), while DCCBs will access Aadhaar tools and infrastructure via their respective SCBs. This eliminates the need for separate systems and simplifies operations.

The changes allow cooperative banks to offer faster, more secure onboarding via Aadhaar-enabled services like biometric eKYC and face biometric authentication. Customers will also be able to receive subsidies and welfare payments directly into their cooperative bank accounts via Aadhaar, especially benefiting rural and semi-urban populations.

The framework also supports the expansion of digital services such as the Aadhaar Enabled Payment System (AePS) and Aadhaar Payment Bridge, reinforcing cooperative banks’ role in advancing financial inclusion.

Aadhaar offline identity verification to be strengthened

UIDAI is working to improve its offline identity verification service to make it more secure, user-friendly, and more widely adopted by financial institutions.

According to a report in The Economic Times, the goal is to formalize offline Aadhaar-based KYC, allowing individuals to verify their identity without disclosing their Aadhaar number or personal details.

Currently, KYC methods — whether electronic, biometric or offline — have required either Aadhaar number disclosure or in-person verification. As the methods for offline Aadhaar-based KYC become standardized, it’s expected that banks and financial services providers will begin leveraging the capability for customer verification, a source told the newspaper.

To streamline offline KYC, UIDAI plans to promote QR codes and PDF formats alongside the existing XML files available for download. This is expected to simplify document handling and verification. The authority also confirmed that offline KYC can be completed without biometric authentication or OTPs.

An issue occurred when ecommerce operators resorted to using “offline” Aadhaar website screens and other unauthorized, illegal methods, for their KYC on blue-collar staff. Indian start-ups in food delivery, ecommerce and ride-hailing are lining up to seek government approval for gig-worker identity verification.

Industry insiders say companies have been hamstrung by the inability to run simple Aadhaar online KYC checks at scale, prompting them to approach the Ministry of Electronics and IT (MeitY) for clearances.

The push came after MeitY’s clampdown on unauthorized use of Aadhaar-based onboarding services. MeitY blocked access to platforms such as Zoop, Surepass and Digitap, in a bid to curb illicit access to the UIDAI database.

Under current rules, any private entity wishing to leverage the Aadhaar ecosystem must get explicit permission from the relevant government department. Without it, such firms face legal exposure and enforcement actions.

Biometric service providers like Protean eGov Technologies stand ready to bridge the verification gap. Once MeitY greenlights a private firm’s proposal, Protean can route authentication requests through a secured channel directly into Aadhaar rails. Founders in the identity verification space are seeking ways to operate as service providers layered atop regulated authentication agencies, aiming to maintain compliance while continuing to offer their solutions.

Ritesh Kothari, CEO of Pune-based identity verification firm Zoop, said that alternative KYC mechanisms such as NPCI’s eKYC-Setu, Sub-AUAs, and the government’s partner programme remain viable. Zoop enables access to these solutions via partnerships.

Commenting on the government block of Zoop’s website in June, Kothari said they submitted their case to the relevant government committee, including MeitY, and their website was reinstated within two weeks.

Article Topics

Aadhaar  |  biometric authentication  |  biometrics  |  face biometrics  |  identity verification  |  India  |  KYC  |  QR code  |  Starlink  |  UIDAI