Muthoot Microfin Secures e-KYC Approval for Seamless Digital Onboarding

Muthoot Microfin has received regulatory approval to conduct Aadhaar-enabled e-KYC for customer onboarding. This milestone allows the company to introduce a fully digital, paperless onboarding process, benefiting rural women entrepreneurs, Joint-Lending Groups (JLGs), and other underserved communities across India.

Enhanced Digital Onboarding for Rural Communities

With the e-KYC license in place, Muthoot Microfin will soon roll out a faster and more secure digital onboarding process. The system will leverage Aadhaar-based authentication, biometric verification, and OTP-based validation, ensuring accurate customer identification. This move is expected to address key challenges in the microfinance sector, such as overleveraging, by enabling lenders to assess borrower exposure more effectively and mitigate financial risks.

Promoting Financial Inclusion and Literacy

The introduction of e-KYC is aimed at bridging the financial gap in rural areas, where access to banking services is often limited. By eliminating manual documentation, the initiative will streamline customer onboarding while reinforcing compliance and data security. Additionally, Muthoot Microfin will launch financial literacy programs in regional languages to help customers better understand digital financial services.

Commenting on this development, the CEO of Muthoot Microfin, Mr Sadaf Sayeed, said,

“We are committed to making financial services more accessible, secure, and efficient for rural communities. Securing the e-KYC license is a critical step in our journey toward greater financial inclusion. By embracing digital advancements, we aim to remove barriers that have traditionally limited financial access, ensuring that even the most remote communities can benefit from a streamlined and secure financial journey.”

Conclusion

The company stated that the nationwide implementation of e-KYC will cover all 20 states where Muthoot Microfin operates, ensuring inclusivity. As of December 31, 2024, the company has a presence in 379 districts with 1,651 branches. Once fully implemented, customers will have digital access to various financial products, including microloans and insurance, fostering economic self-sufficiency. Through this initiative, Muthoot Microfin reaffirms its commitment to technology-driven financial inclusion.

On March 5, 2025, Muthoot Microfin share price opened at ₹131.00, up from its previous close of ₹130.62. At 10:33 AM, the share price of Muthoot Microfin was trading at ₹133.40, up by 2.13% on the NSE.

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