diff --git a/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/Make.defs b/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/Make.defs
index 4e78fdf8242..4040c7f9393 100644
--- a/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/Make.defs
+++ b/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/Make.defs
@@ -46,7 +46,7 @@ endif
 
 ifeq ($(CONFIG_ETC_ROMFS),y)
   RCSRCS = etc/init.d/rc.sysinit etc/init.d/rcS
-  RCRAWS = etc/group etc/passwd
+  RCRAWS = etc/group
 endif
 
 DEPPATH += --dep-path board
diff --git a/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/etc/passwd b/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/etc/passwd
deleted file mode 100644
index bc1f3a68e46..00000000000
--- a/boards/risc-v/esp32c3-legacy/esp32c3-legacy-devkit/src/etc/passwd
+++ /dev/null
@@ -1 +0,0 @@
-admin:8Tv+Hbmr3pLVb5HHZgd26D:0:0:/
diff --git a/boards/sim/sim/sim/configs/login/defconfig b/boards/sim/sim/sim/configs/login/defconfig
index b59060be174..77883e7617d 100644
--- a/boards/sim/sim/sim/configs/login/defconfig
+++ b/boards/sim/sim/sim/configs/login/defconfig
@@ -13,6 +13,7 @@ CONFIG_ARCH_CHIP="sim"
 CONFIG_ARCH_SIM=y
 CONFIG_BOARDCTL_APP_SYMTAB=y
 CONFIG_BOARDCTL_POWEROFF=y
+CONFIG_BOARD_ETC_ROMFS_PASSWD_ENABLE=y
 CONFIG_BOARD_LOOPSPERMSEC=0
 CONFIG_BOOT_RUNFROMEXTSRAM=y
 CONFIG_BUILTIN=y
@@ -50,7 +51,7 @@ CONFIG_NSH_BUILTIN_APPS=y
 CONFIG_NSH_CONSOLE_LOGIN=y
 CONFIG_NSH_FILE_APPS=y
 CONFIG_NSH_MOTD=y
-CONFIG_NSH_MOTD_STRING="MOTD: username=admin password=Administrator"
+CONFIG_NSH_MOTD_STRING="This is an example NuttX Message Of The Day (MOTD). Have fun!"
 CONFIG_NSH_READLINE=y
 CONFIG_PATH_INITIAL="/bin"
 CONFIG_PSEUDOFS_ATTRIBUTES=y
diff --git a/boards/sim/sim/sim/src/CMakeLists.txt b/boards/sim/sim/sim/src/CMakeLists.txt
index de5a6695baa..cbf3cc7168c 100644
--- a/boards/sim/sim/sim/src/CMakeLists.txt
+++ b/boards/sim/sim/sim/src/CMakeLists.txt
@@ -77,7 +77,6 @@ if(CONFIG_ETC_ROMFS)
     etc/init.d/rc.sysinit
     RCRAWS
     etc/group
-    etc/passwd
     PATH
     ${CMAKE_CURRENT_BINARY_DIR}/etc)
 
diff --git a/boards/sim/sim/sim/src/Makefile b/boards/sim/sim/sim/src/Makefile
index 4d5c5e83152..6fe51cd401e 100644
--- a/boards/sim/sim/sim/src/Makefile
+++ b/boards/sim/sim/sim/src/Makefile
@@ -56,7 +56,7 @@ endif
 
 ifeq ($(CONFIG_ETC_ROMFS),y)
   RCSRCS = etc/init.d/rc.sysinit etc/init.d/rcS
-  RCRAWS = etc/group etc/passwd
+  RCRAWS = etc/group
 endif
 
 ifeq ($(CONFIG_ARCH_BUTTONS),y)
diff --git a/boards/sim/sim/sim/src/etc/passwd b/boards/sim/sim/sim/src/etc/passwd
deleted file mode 100644
index bc1f3a68e46..00000000000
--- a/boards/sim/sim/sim/src/etc/passwd
+++ /dev/null
@@ -1 +0,0 @@
-admin:8Tv+Hbmr3pLVb5HHZgd26D:0:0:/