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AEPS

Aadhaar Enabled Payment System

Last Updated 01st Dec 2020

  • AEPS is an Aadhaar Enabled Payment System to do banking transactions with 12-digit Unique Aadhaar Number.
  • It works on Micro-ATM through a system maintained by business correspondents.
  • You can do banking transactions such as depositing and withdrawal of cash, making intra and inter-banking fund transfer, balance enquiry etc.
  • To do transactions by AePS, your Aadhaar must be linked with your bank account.
  • Aeps system is secure by the verification system of biometric authentication of fingerprints/iris scan.

About AePS

AePS means Aadhaar Enabled Payment System and is a kind of payment mechanism through which Aadhaar Cardholders can do banking transactions with their 12-digit unique identification number. It is a system developed by National Payments Corporation of India that works on a Micro-ATM through business correspondents. It requires the submission of Aadhaar number just like a debit/credit card number along with the verification provided by the fingerprints/iris scan. To start making payments, deposit cash, make withdrawals and enquiry about bank balance, etc. using Aeps, the Aadhaar must be linked with the bank account.

Objectives of AePS

AePS, a bank-led model aims to achieve the following objectives:

  • The system of Aeps allows the customer to access Aadhaar linked bank accounts to do transactions such as depositing cash, withdrawal of money, intrabank or interbank fund transfer, balance enquiry, and obtain a mini statement.
  • It helps to achieve the goal of the Government of India and Reserve Bank of India to bring financial inclusion and promote electrification of payments.
  • Also, it facilitates disbursement of funds under various government initiatives such as NREGA, Social Security pension, Handicapped Old Age Pension etc.
  • Finally, it tries to build a strong foundation for Aadhaar based banking services.

Services Offered by Aadhaar Enabled Payment System

Aeps allows the customers to access his Aadhaar linked bank accounts through a system maintained by business correspondents. These are some of the common services that can be availed through Aadhaar Enabled Payment System.

  • Interbank Transactions
  • Intra-bank Transactions
  • eKYC
  • Finger Detection
  • Balance Enquiry
  • Cash Withdrawal
  • Cash Deposit

How to use AePS?

All Indian residents who are holding an Aadhaar card and have also linked their Aadhaar with bank accounts can use the AePS. To use AePS, you need to follow the below-mentioned steps:

  • Visit a micro ATM or banking correspondent. A banking correspondent is an intermediary appointed by a bank to extend the banking services in areas where there is no bank branch.
  • Now Provide Aadhaar number and IIN. IIN or Institution Identification Number helps to identify the bank name
  • Next, choose the type of transaction you want to do.
  • Finally provide verification through fingerprint/iris scan and collect your receipt.

Features and Benefits of Aeps Payment

Aeps provides the following features and benefits for doing banking transactions:

  • Convenient: To do banking transactions through Aeps, the user does not need to carry a bank passbook or have information about banking transactions. The transactions can be done through Aadhaar authentication and biometric verification.
  • Financial Inclusion: The system of Aeps also helps in bringing financial inclusion by providing access to banking transactions where there is no system of banking by setting mini ATMs and through business correspondents.
  • Secure: It can also be considered as the safe and secure method of making payments as the system is verified by biometric authentication of fingerprint/iris scan and thus cannot be forged by anyone.
  • Promote Government Initiatives: Further, it also helps in the disbursement of government initiatives such as NREGA, Social Security pension, Handicapped Old Age Pension etc.

Why was Aeps Launched?

Aeps was primarily launched to provide maximum financial inclusion of different segments of society as it is difficult to have a bank branch in every nook and corner of the country. Thus, the government developed the system to allow the customers to get access to banking transactions such as depositing money, making fund transfers etc. through electronic modes with the help of Micro ATMs and Business Correspondents.

To do banking transactions, one needs an Aadhaar Number, IIN(Institution Identification Number) and Fingerprints/Iris Scan. Also, the system is verified by biometric authentication of fingerprints/iris scan and is thus safe and secure. Further, it does not require you to carry your bank passbook or procure any information about bank accounts.

FAQs

Is Aeps safe?

Yes, Aeps, a system developed by National Payments Corporation of India is safe and secure as it is authenticated by biometric verification of fingerprints/iris scan and thus cannot be forged.

Who can use AEPS?

AePS or Aadhaar Enabled Payment System can be used by any Indian residents who have a valid Aadhaar Card which is linked with their bank accounts.

What type of bank account do you need to have for AEPS?

To use Aeps, you should have an Aadhaar seeded account with the issuing bank that should be a member or sub-member of the NFS network and is also enabled on AEPS offered by NPCI.

What is BHIM Aadhaar Pay?

BHIM Aadhaar Pay is a system that allows merchants to receive digital payments from customers through Aadhaar based authentication. They can receive payments through any acquiring bank on BHIM Aadhaar Pay service provided that they also have an Android mobile with the BHIM Aadhaar app along with a certified biometric scanner.

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