Securities and Exchange Board of India (SEBI), through Press Release No. 35/2025 dated June 30, 2025, has permitted registered intermediaries in the securities market to use the ‘e-KYC Setu System’ developed by the National Payments Corporation of India (NPCI) for Aadhaar-based electronic Know Your Customer (e-KYC) authentication. This move aims to enhance the ease of doing business and streamline the client onboarding process. Previously, intermediaries relied on e-KYC services provided by the Unique Identification Authority of India (UIDAI), either through the KYC User Agency (KUA/Sub-KUA) mechanism or via Digilocker. The new facility offers an additional option, enabling digital KYC through the NPCI-UIDAI integrated system. The ‘e-KYC Setu System’ is designed to support efficient and secure digitization of customer verification, allowing intermediaries to adopt it alongside existing KYC processes.
Securities and Exchange Board of India
PR No. 35/2025
Registered Intermediaries are allowed to use ‘e-KYC Setu System’ of National Payments Corporation of India to perform Aadhaar based e-KYC authentication for ease of doing business
Under the present framework, registered intermediaries use e-KYC services of Unique Identification Authority of India (UIDAI) in the securities market. This service has been accepted as a valid process for digital Know Your Client (KYC) verification using KYC User Agency (KUA /Sub-KUA) mechanism and /or the Digilocker. To further facilitate ease of doing KYC, it is stated that registered intermediaries can also use ‘e-KYC Setu System’ of National Payments Corporation of India (NPCI) to perform digital KYC.
NPCI along with UIDAI has developed and implemented a system known as ‘e-KYC Setu System’ to enable digitization of the customer onboarding. Registered intermediaries may use the facility of ‘e-KYC Setu System’ to perform digital KYC, as an additional alternate mechanism available to the them to carry out Aadhaar based e-KYC of their clients.
Mumbai
June 30, 2025
