e-KYC Setu
Also written eKYC Setu · NPCI e-KYC Setu
An NPCI-operated facility that verifies an NPS subscriber's identity through Aadhaar without ever disclosing the full Aadhaar number to the Point of Presence, CRA or NPS Trust.
In plain language
An Aadhaar check usually means sharing your full Aadhaar number with whoever is checking you. Many people dislike that.
e-KYC Setu fixes this. It confirms who you are. But it never shows your full Aadhaar number to the NPS system doing the check.
How it works
e-KYC Setu is a facility operated by the National Payments Corporation of India (NPCI). It authenticates a subscriber's identity through Aadhaar without the full Aadhaar number ever being disclosed to the PoP, the CRA or the NPS Trust.
After authentication, only the last four digits of the Aadhaar number, together with digitally-signed demographic details, are shared with the reporting entity, which then completes the identification. The subscriber's consent is required, and the reporting entity may not store the Aadhaar number or biometrics.
A worked example
Ms Bhatt opens an NPS account through the eNPS portal and chooses Aadhaar-based verification. Instead of her full 12-digit Aadhaar number being stored by the Point of Presence or the CRA, the request routes through e-KYC Setu: NPCI authenticates her identity against UIDAI records and passes back only the last four digits of her Aadhaar number along with digitally-signed demographic details (name, address, date of birth) to complete her onboarding.
Her full Aadhaar number and biometric data are never stored by the PoP, the CRA or the NPS Trust — the only entity that ever saw the complete number is UIDAI itself. She gave her consent before the check ran, as required.
Why NISM asks about it
Chapter 4's KYC section lists e-KYC Setu among the permitted digital verification modes for NPS onboarding, alongside CKYC, Aadhaar offline XML/QR, Digital KYC, VCIP and DigiLocker-based verification. Expect a question testing what is actually shared through e-KYC Setu (only the last four digits, plus demographic details) versus what is not (the full Aadhaar number, biometrics).
Common exam traps
- Only the last four digits of the Aadhaar number are shared, not the full number — the whole point of the facility is limiting exposure.
- The reporting entity cannot store the Aadhaar number or biometrics — this is a compliance obligation on the PoP/CRA/NPS Trust side, not merely a technical feature.
- Consent is mandatory before e-KYC Setu can be used — it is not a default, silent verification step.
- Do not confuse e-KYC Setu with plain Aadhaar-based eKYC, which does involve fuller Aadhaar-linked verification; e-KYC Setu is specifically the privacy-preserving variant operated by NPCI.
Where this is taught
Free preparation for NISM Series XVIIRelated terms
- National Pension SystemA PFRDA-regulated, defined-contribution retirement scheme in which the subscriber builds a market-linked corpus and must convert part of it into an annuity at exit; there is no guaranteed return.
- Central Recordkeeping AgencyThe intermediary that holds every NPS subscriber record — it issues the PRAN, unitises contributions at scheme NAV and sits between the subscriber, the pension funds and the trustee bank.
- D-RemitA facility that lets NPS subscribers make voluntary contributions straight from their bank account into their NPS account, via a dedicated virtual ID, with same-day investment if received before the cut-off.