Introduction to Aadhaar Enabled Payment System (AePS)
Aadhaar enabled Payment System or AePS is a payment system which was introduced with an aim to empower people from all parts of the society by making banking and financial services available to them. This payment system makes it possible to initiate payments through the unique identification number (UID).
Through the Aadhaar enabled Payment System or AePS, all Aadhaar card holders can make payments, transfer funds, make withdrawals, deposit cash and other bank related activities by using Aadhaar based authentication.
AePS is a secure and user friendly system through which the user can make payments simply by providing Aadhaar verification at different locations like point of sale or micro ATMs. The AePS machine works similar to the Point of sale machine but instead of using a debit or credit card, the retailer needs to enter the customer’s Aadhaar number and biometric information. The only requirement you need for AePs is to have your Aadhaar card linked to your bank account.
All the services offered by the Aadhaar enabled Payment System or AePS are cash withdrawals, cash deposits, bank balance enquiry, Aadhaar to Aadhaar fund transfer, BHIM Aadhaar pay, eKYC, etc.
Objectives of the Aadhar enabled Payment System or AePS
The main aim of the Aadhaar enabled Payment System or AePS is to enhance the digital India movement and encourage more cashless money transfers. Along with these some other objectives of the Aadhaar enabled Payment System OR AePS are as follows:
- To empower people from all sections of the society to use banking and finance services by the unique identification number and Aadhaar verification.
- To assist the goal of financial inclusion initiated by the Indian Government and the Reserve Bank of India (RBI).
- To encourage cashless payments and money transactions.
- To develop a range of Aadhaar enabled banking services.
Benefits of Aadhaar enabled Payment System or AePS
- The Aadhaar enabled Payment System or AePS is relatively easy to use as all you need to do is provide Aadhaar verification for availing the banking services.
- It is a safe and secure method of payment and interoperable across various banks.
- This system facilitates financial inclusion and encourages people from all parts of the society to avail the financial and banking services.
- The only requirement for using this system is to have your Aadhaar card linked to your bank account.
- For making transactions by using Aadhaar enabled Payment System or AePS, the only information you need to provide is your Unique identification number or your Aadhaar number and biometric information.
