Aadhaar Enabled Payment System (AEPS)

Know all about the Aadhaar Enabled Payment System (AEPS): eligibility, benefits, objectives, Features, Procedure

The Aadhaar Enabled Payment System (AEPS) was developed by the National Payment Corporation of India(NPCI). It is a method by which users can make payments and deposit cash. The method provides the individual with the opportunity to use banking services such as cash deposits, Bhim Adhaar Pay, cash withdrawals, mini statements, Adhaar to Adhaar fund transfers, and many more.

APES provides people with an opportunity to transfer money hassle-free and perform all bank-related activities. It is a safe and secure method by which users can transfer money only by providing Adhaar verification at their locations. To use this facility, the user needs to link their Adhaar card to their bank account, and the transaction can be made after the verification of the biometric details.

Eligibility of AEPS

1) The customer should be the Adhaar card holder.

1) The Adhaar card should be linked to the bank account.

3)Fingerprint/Iris Biometrics of the Holder of the Adhaar Card.

Objectives of the APES:

  1. Provide strength to the customer to use the Adhaar Card as proof of identity and do banking services.
  2. It helps to reduce cash payments, promote digital transactions and increase accessibility for users through the Adhaar Card.
  3. Safety and security in the transaction because it involves fingerprint biometric authentication verification.
  4. Enhance Transparency and efficiency in the banking sector.
  5. Provides accessibility and convenience to users or customers.

Features

  1. Convenient to use at any time and hassle-free.
  2. Robust security and safety of the sensitive information of the customer.
  3. Interconnected with various banks
  4. Encourage financial inclusion and provide services to the underbanked section of society.
  5. The information required to initiate the payment in AEPS is the fingerprint biometric and Adhaar number.
  6. Disbursement of government schemes is done by APES, like the Pension Scheme, NREGA, etc.

Benefits

  1. Convenience: With AEPS, customers benefit from easy access, as they only need to provide Aadhaar card details and biometric information. Notably, they don’t have to enter additional information, like OTPs, which streamlines the process further.
  2. Efficiency: Interoperability now enables a seamless experience, effectively eliminating delays and reducing the effort needed to complete transactions.
  3. Innovation: By leveraging digital technology, financial services can drive innovation and introduce more efficient systems, ultimately supporting India’s goal of a cashless economy.
  4. Risk Mitigation: The system actively enhances safety and security, giving both businesses and individuals the confidence to use it. Furthermore, it helps reduce potential risks in the banking sector, fostering a more secure environment for financial transactions.
  5. Customer Satisfaction: When customers can make transactions easily with their Aadhaar card, they experience higher satisfaction, as they don’t need to rely on debit or credit cards. This added convenience improves overall user experience, making the process more accessible for a broader audience.

Process

1: Go to the banking correspondent (BC) or micro ATM.

2: Next, provide your Adhaar card details and your bank name.

3: Then select the type of transaction.

4: Verification of the biometric information

5: Now, you can collect your receipt.

Limit of Cash Withdrawals

  • The maximum amount of single financial transactions is Rs 10,000, as set by the NPCI.
  • The fund transfer limit is decided by your bank.

Services offered

  1. Transactions of Payment
  2. Cash Deposit
  3. Cash withdrawal
  4. Enquiry Balance
  5. E-KYC

In conclusion, AEPS has successfully provided secure, affordable, and dependable banking services across India. As AEPS continues to grow, it is steadily increasing financial literacy and supporting the country’s digital transformation.

  1. How to link your aadhaar card to bank account for AEPS
  • Types of linkage – DBT and AEPS

1.Linking the bank account with the Adhaar Card at the ATM

1st step : First, insert the ATM card into the machine and also enter your PIN.

2nd step: Then go to the menu named “Services” and select the option “Registration.”

3rd step: Select option  “Adhaar Card Registration” .

4th step: Now select the account and enter your 12-digit Adhaar Number.

5th step: Lastly, re-enter your Adhaar Card details, and then the successful confirmation message will be sent to your mobile number.

2. Direct Benefits Transfer (DBT)

In a 2022 statement, the International Monetary Fund (IMF) praised India’s Direct Benefit Transfer (DBT) system as “a logistical marvel.” The DBT model allows the government to send benefits such as subsidies and pensions directly to beneficiaries, significantly reducing fraudulent middlemen activities. This system strives to increase funds directly reaching people below the poverty line, enhancing financial inclusion and accountability.