Aadhaar e-KYC transactions jump 18.53% in Q3 of FY 2022-23

Adoption of Aadhaar based e-KYC is witnessing a continuous progress, and in the October-December quarter (Q3) of FY 2022-23, more than 84.8 crore e-KYC transactions were executed using Aadhaar, a growth of 18.53% over the Q2 (July-Sept) of the current financial year.

In December alone, 32.49 crore e-KYC transactions were completed using Aadhaar, a 13% increase over the previous month.

The Aadhaar e-KYC service is becoming increasingly significant for banking and non-banking financial services by offering a more transparent and improved customer experience and aiding in the ease of doing business.

In October, there were 23.56 crore Aadhaar e-KYC transactions, which increased to 28.75 crore in November before rising further in December, showing its growing usage and utility in the economy.

169 entities including 105 banks are live on e-KYC. Adoption of e-KYC has also greatly lowered the cost of customer acquisition for companies such as financial institutions, telecoms providers, and others.

By the end of December 2022, the total number of Aadhaar e-KYC transactions will have reached 1382.73 crore. An e-KYC transaction is carried out only with the explicit approval of the Aadhaar bearer, and it eliminates the need for physical papers and in-person verification for KYC.

Similarly, Aadhaar authentication transactions are becoming more popular among people. In December alone, 208.47 crore Aadhaar authentication transactions were completed, representing a 6.7% increase over the previous month.

The biometric fingerprint was used for the majority of these monthly authentications, followed by demographic and OTP authentications.

By the end of December 2022, about 8829.66 crore crore Aadhaar authentication transactions will have been carried out. It demonstrates how Aadhaar is becoming increasingly important in financial inclusion, welfare delivery, and the provision of a variety of other services.

Whether it is e-KYC for identity verification, Aadhaar enabled DBT for direct fund transfer, AePS for last mile banking, or authentications, Aadhaar, the digital infrastructure of good governance, has played a key role in supporting Prime Minister Shri Narendra Modi’s vision of Digital India and enabling residents’ ease of living.

More than 1100 government schemes, programs and in the country run by both centre and states have been notified to use Aadhaar. The digital ID is helping various ministries and departments in the centre and at states in improving efficiency, transparency and delivery of welfare services to the targeted beneficiaries.

The Aadhaar Enabled Payment System (AePS) is enabling financial inclusion for those at the bottom of the income pyramid. By the end of December 2022, cumulatively, 1610.44 crore of last mile banking transactions have been made possible through AePS and the network of micro-ATMs.