In a significant move aimed at bolstering data privacy and digital identity security across India’s financial ecosystem, ECS has entered into a non-exclusive strategic partnership with NxtGen Cloud Technologies, a leader in Sovereign Cloud services.
Through this partnership, ECS will offer its industry-leading solutions—FraudEye 360, an advanced Aadhaar Fraud Management system, and CDMS, a Consent & Data Management Solution—hosted on the NxtGen Sovereign Financial Cloud. These solutions will be made available to enterprises across India’s BFSI sector to support compliance with the regulatory mandates of UIDAI as well as the operational processes outlined in the Digital Personal Data Protection (DPDP) Act.
The joint offering from ECS and NxtGen will be delivered through a Software-as-a-Service (SaaS) model, enabling financial institutions and Regulated Entities (REs) to seamlessly adopt these solutions without the burden of managing complex IT infrastructure.
Why This Tie-up Was The Need Of The Hour
As regulatory requirements become stricter and digital threats grow more complex, REs need solutions that are both compliant and inherently resilient.
This strategic partnership is designed to enable enterprises to ensure optimal regulatory compliance on the below mentioned fronts:
1. Mitigating Identity Fraud
As India’s financial ecosystem continues to digitise at an unprecedented pace, leading to a rapid surge in identity-related frauds.
Identity fraudsters are actively engaged in modifying the digital identities and almost all Officially Valid Documents (OVDs) are increasingly becoming prime targets for falsification of the identities, posing significant challenges for identity verification systems implemented by almost all enterprises. Growing use of AI-generated content and synthetic identities is further complicating detection and prevention efforts.
Synthetic identity frauds, in which the fraudsters construct fake identities by combining real and fabricated personal information, have emerged as one of the fastest-growing financial crimes in India. The Ministry of Finance has recently raised concerns over the increasing instances of scams involving counterfeit KYC documents, which are often used to exploit vulnerable individuals and bypass the conventional identity verification systems.
Regulators have also observed a sharp increase in fraudulent transactions, which go undetected on account of suboptimal fraud management practices implemented by Regulated Entities (REs). Key concerns include poor management and governance of Aadhaar eKYC processes and the lack of systems to monitor and control unsupervised transaction processing across platforms used by REs.
To address these vulnerabilities, UIDAI has mandated that all REs using the Aadhaar eKYC ecosystem must implement a robust and scalable Aadhaar Fraud Management ecosystem.
The ECS–NxtGen partnership aims to bridge this critical gap by offering an advanced fraud detection solution focussed on identifying and mitigating frauds originating from the Aadhaar eKYC processes, which is in line with the UIDAI mandate as outlined in the information security policy mentioned in the Compendium of regulations published by UIDAI.
Having processed over 10 billion Aadhaar eKYC transactions till date, ECS brings unparalleled expertise in designing advanced solutions for Aadhaar-based identity management and fraud prevention.
When combined with NxtGen’s cutting-edge sovereign cloud infrastructure, this partnership enables Regulated Entities (REs) to significantly enhance their fraud detection and prevention capabilities—while ensuring full compliance with UIDAI’s recently introduced regulatory mandate in a scalable and cost-effective manner.
2. Compliance with DPDP Act
India’s Digital Personal Data Protection (DPDP) Act mandates that entities collecting personal data must obtain explicit consent, maintain audit trails, and implement robust consent lifecycle management processes. DPDP Act outlines the framework of storing, using and sharing of Digital Personal Data and mandates all enterprises to adhere to the data sharing and data processing framework outlined in the Act.
Regulated Entities (REs) handling sensitive digital personal data which are not complying with these upcoming regulations are at a risk of facing huge financial penalties as well, and recurring non-compliance may lead to a direct threat to their business continuity.
ECS’s Consent & Data Management Solution (CDMS) is purpose-built to ensure compliance with the Digital Personal Data Protection (DPDP) Act. It enables organizations to securely capture, store and process the underlying data as per the associated consent captured from the data principal.
Key features of this solution include real-time consent capture, management of data principal’s rights, automated consent revocation workflows designed to facilitate consent-based sharing of the digital personal data as outlined in the Act and the operational rules published subsequently.
3. Making Defence-Grade Security Instantly Accessible
ECS’s FraudEye 360 and CDMS solutions will be hosted on NxtGen’s Sovereign Financial Services Cloud, which is architected to meet the stringent data residency, availability, and compliance needs of BFSI organisations in India.
It ensures all data remains within national borders, with end-to-end encryption, multi-layered access control, and real-time disaster recovery capabilities.
For financial institutions that are already under pressure to modernise their IT infrastructure, the integrated SaaS model means they don’t need to worry about capex-heavy deployments or the complexities of regulatory audits. NxtGen will manage the infrastructure and compliance layers, while ECS ensures application-layer readiness.
What’s Included in the Offering
ECS and NxtGen’s SaaS bundle offers REs:
- FraudEye 360: ECS’s Aadhaar Fraud Management solution that enables real-time fraud detection for e-KYC transactions as mandated by UIDAI.
- CDMS: A comprehensive platform to ensure end-to-end compliance with the DPDP Act, including consent lifecycle management.
- Sovereign Hosting: Delivered via NxtGen’s India-based GCC Financial Services Cloud with 24/7 compliance monitoring.
- Scalable Infrastructure: Tailored to the RE’s expected transaction volume and usage pattern.
- Managed Service Model: Minimising in-house IT burden while offering full operational visibility.
Summing Up
In today’s expanded threat landscape, where a single data breach can undo years of brand credibility and customer trust, proactive data governance is no longer optional.
Regulated Entities (REs) must ensure not just technical compliance, but demonstrable accountability in how they manage digital identities and consent. Having a centralised, audit-ready platform for fraud detection and consent lifecycle management is a critical step in that direction. It enables REs to meet regulatory mandates, respond swiftly to compliance audits, and most importantly, build lasting trust with their stakeholders.
Our collaboration with NxtGen makes this easier by deploying ECS’s proven Aadhaar-based digital identity solutions to a sovereign, scalable, and secure cloud environment.
However, this is not an exclusive engagement. At ECS, we recognise that every organisation’s infrastructure strategy is different. With a future-ready regulatory stack and a flexible deployment philosophy, we remain fully committed to partner with like-minded solution providers that aim to help India’s REs lead with trust, agility, and resilience.
Please feel free to reach our colleague Amit Joshi on 9820875525 / 7208155528 or email him at amit@eastcs.com to learn more about the ECS-NxtGen partnership.