Use of Aadhaar for bank account opening

Digital ID is used to perform electronic know your customer (e-KYC) verification to open bank accounts, which reduces the need for physical documentation and enables instant account activation. Aadhaar-based e-KYC uses biometric authentication and OTP verification. It allows banks to verify customer identity instantly and open accounts on the spot. This process has been instrumental in the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) that launched in 2014. The PMJDY sought to achieve universal financial inclusion, which provided every household with at least one basic banking account. As of May 2025, banks have opened 553.9 million Jan Dhan accounts through Aadhaar as the primary identity verification instrument. The Reserve Bank of India (RBI) oversees Aadhaar-based account opening. All scheduled commercial banks, regional rural banks, and cooperative banks across India implement this process.