Muthoot Microfin Limited (NSE: MUTHOOTMF, BSE: 544055) has received approval to conduct Aadhaar-enabled e-KYC for customer onboarding, marking a significant step towards digital financial inclusion. This initiative will introduce a fully digital, paperless onboarding process for rural women entrepreneurs, Joint-Lending Groups (JLGs), and underserved communities across India.
With the e-KYC license in place, Muthoot Microfin will implement a faster and more secure customer authentication process using Aadhaar-based biometric verification and OTP validation. This move aims to mitigate financial risks by ensuring accurate borrower identification and reducing overleveraging in the microfinance sector. The transition to digital onboarding will eliminate manual documentation, reinforcing compliance and data security.
The e-KYC rollout is designed to tackle key challenges in rural financial accessibility, including identity verification barriers and lengthy onboarding procedures. Additionally, Muthoot Microfin will introduce financial literacy programs in regional languages to help customers navigate digital financial services.
The implementation will extend across all states where Muthoot Microfin operates, ensuring inclusivity. Customers will be able to access a variety of financial products, including microloans and insurance, fostering economic self-sufficiency.
Sadaf Sayeed, CEO of Muthoot Microfin, stated, “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.”
As of December 31, 2024, Muthoot Microfin operates in 20 states, covering 379 districts with 1,651 branches, serving 3.42 million active customers. The company reported a Gross Loan Portfolio (GLP) of ₹12,404.9 crore and is part of the S&P BSE Financial Services Index.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always conduct your research or consult a financial advisor before making any financial decisions.
