AePS – Aadhaar Enabled Payment System ​Just remember your aadhaar number to receive and send money

AePS- Aadhaar Enabled Payment System :

If you have your Aadhaar number with you , you can draw cash , transfer money or pay for purchases from your aadhaar linked bank account using AePS payment system . Many banks and post offices are members of the scheme . You won’t require a cheque or a debit card to draw cash or make payment . Only pre-condition is your bank account should have been linked to Aadhaar

Background :

• In order to further speed track Financial Inclusion in the country, Two Working Groups were constituted by RBI on MicroATM standards and Central Infrastructure & Connectivity for Aadhaar based financial inclusion transactions with members representing RBI, Unique Identification Authority of India, NPCI, Institute for Development and Research in Banking Technology and some special invitees representing banks and research institutions.

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• The working group on MicroATM standards & Central Infrastructure & Connectivity has submitted its report to RBI. As a part of the working group it was proposed to conduct a Lab level Proof of concept (PoC), integrating the authentication & encryption standards of UIDAI, to test the efficacy of MicroATM standards and transactions using Aadhaar before they are put to actual use. The PoC was successfully demonstrated at various venues.

What is AePS ?

The Aadhaar Enabled Payment System (AePS) is a bank-led model developed by NPCI, which allows online transactions at Micro ATM/Kiosk/mobile devices through the authorised Business Correspondent (BC) of any bank using Aadhaar authentication. This solution has been designed by NPCI to handle various kinds of service requests effectively by enabling an authentication gateway for all Aadhaar linked account holders .

WHO CAN USE AePS ?
​Any resident of India having an Aadhaar number linked to a bank account can utilise the AePS service.

WHAT ARE THE FUNCTIONS YOU CAN DO WITH AePS ?
Bank customers with an Aadhaar enabled bank account can use the AePS solution for banking transactions as listed below:1. Balance Enquiry
2. Cash Withdrawal3. Cash Deposit
4.Aadhaar to Aadhaar Fund Transfer5. Mini Statement
6. Purchase7. Self-Help Group (SHG) Transaction

As of now ( 30th , July 2024 ) , there are 36 commercial banks , 41 Regional Rural banks . 59 Co-operative Banks and 14 Payment Banks and Small Finance Banks . To go through the list , CLICK HERE

BENEFITS OF AePS :

NPCI has designed AePS to be accessible and flexible. AePS enables easy online transactions through multiple authorised channels, to improve accessibility to underserved:
1) Through a bank’s Business Correspondent: Business Correspondents are authorized (by banks) entities who represent the bank and who have Micro ATM devices to facilitate customer transactions.
2) ‘BHIM Aadhaar Pay’ at merchant locations: A purchase transaction under AePS where any merchants can accept payments using Aadhaar number/VID and biometrics of the customer. ​Business uses of the AePS service
1) Allows bank customers to use Aadhaar number/Virtual Identity to access their Aadhaar enabled bank account and make basic banking transactions.2) Facilitates interoperability across Banks/Entities in a safe and secure manner.
3) Enables eKYC Services1a. A resident of India can open a bank account with any bank, any location using Aadhaar as a Proof of Identity and Proof of Address.b. AePS provides a real-time electronic KYC platform to all Banks/non-bank entities in India which can help them in meeting their customer KYC needs.c. Provides a cost-effective, safe, and secure means of paperless KYC to all Banks/non-bank entities in India which may save a lot of cost and effort related to storing physical KYC proofs.
4) Facilitates merchant transactions by allowing the merchant to accept the Aadhaar number/Virtual ID and biometrics of the customer for the purchase of goods and services through Aadhaar based biometric authentication.