AEPS

AEPS is the abbreviation of Aadhaar Enabled Payment System. This payment system is based on the Unique Identification Number. It allows Aadhaar card holders to make financial transactions effortlessly through Aadhaar-based authentication. AEPS aims to empower every section of the society by providing financial and banking services to all through Aadhaar. It is an Aadhaar-enabled payment system through which one can make payments, transfer funds, deposit cash, make withdrawals, make a balance inquiry, etc. One can pay via AEPS at Point of Sale (PoS) or withdraw cash from micro ATMs by providing Aadhaar verification using Aadhaar number and fingerprint. AEPS is an initiative taken up by the NPCI to encourage cashless transaction in India.

All transactions can be carried out through a Business Correspondent (BC) or a micro-ATM, except for fund transfer, where one must visit the specific bank BC. AEPS will work only for those who have linked their bank account with Aadhaar.

How to use AEPS

This step-by-step guide can help you use AEPS

1: Visit a micro-ATM or a banking correspondent

2: Provide your Aadhaar number and bank name

3: Select the type of transaction that you want to make

4: Verify through fingerprint/iris scan

5: Collect the receipt

Services Offered by AEPS

Cash Deposit

Cash Withdrawal

Payment Transactions

Balance Enquiry

Aadhaar to Aadhaar funds transfer

AEPS: Features & Benefits

It is very easy to use

It provides a safe and secure method of payment

It is interoperable across various banks

It encourages financial inclusion by serving the underbanked sections of society

It facilitates access to bank accounts through Aadhaar for all bank account holders

Just the Aadhaar number and biometric information is enough to carry out a transaction

It aids the disbursal of government schemes

AEPS: How Does It Work?

The AEPS machine is like a Point of Sale (POS) machine. However, the merchant has to enter the customer's Aadhaar number instead of a debit/credit card pin and then authenticate the transaction with the customer's biometric data.

The following information is required to carry out an AEPS transaction:

Bank's name or Issuer Identification Number (IIN)

The Aadhaar Number

The fingerprint of the Customer

FAQs

What is AEPS?

AEPS is a payment method that works through Aadhaar. The NPCI has initiated the service.

What is Aadhaar?

Aadhaar is a unique number assigned to Indian residents by the Unique Identification Authority of India.

Who can use AEPS?

Indian residents who have a valid Aadhaar card that is linked with a bank account may use this payments service.

How to enable this service?

First and foremost, link your Aadhaar number with your bank account. Then, approach your bank and seek guidance with activating AEPS.

Is it necessary for the payee/beneficiary to have AEPS for receiving funds?

No, it is not necessary.

Can multiple bank accounts be linked to Aadhaar card?

Yes, it can be done.

Can those without Aadhaar cards avail of this service?

No.

What is a business correspondent?

A business correspondent is an approved bank agent that offer a terminal or micro ATM services to banks.

What is an IIN?

It is a six digit number that is used in the identification process of banks.