Aadhaar Enabled Payment System - AEPS Services, Features & Benefits

In the present era of fast-paced lives, the landscape of digital payments has also evolved with time. Most people are drawn towards impactful and innovative solutions that ensure a seamless payment system. One such example is the Aadhaar Enabled Payment System, which is a modern solution that features digital transactions.

This article shall explore the details of AEPS along with its features, benefits, application process, services and many more. 

What is AEPS?

AEPS (Aadhaar Enabled Payment System) is a payment service through which customers can use their Aadhaar as their identity to access Aadhaar-enabled bank account to carry out banking operations. You can use it for making payments, cash withdrawals, checking your bank balance, transferring funds overseas, etc.

These payments are based on the Aadhaar number of the customers, which is a 12-digit unique identification number, enabling them to easily initiate and complete the required transactions. Therefore, the Aadhaar Enabled Payment System is an innovative payment system that aims to empower all sectors of society by allowing every citizen to access financial and banking services through their Aadhaar cards.

Opting for banking operations through AEPS enables you to experience a simple, user-friendly and seamless process. You do not have to visit any bank branch physically to access your bank accounts or request any financial transactions.

Thus, AEPS is considered as an major initiative by the National Payments Corporation of India (NPCI) that highly encourages cashless transactions in the country. You can use it through bank agents, business correspondents or a micro ATM.

How does AEPS work?

AEPS works based on the unique 12-digit Aadhaar number of the customers, which should be linked to their respective bank accounts. All transactions can be made only after verifying the Aadhaar cards, through the unique number along with biometric details.

Thus, to complete a transaction through the Aadhaar Enabled Payment System, the following things are required:

• Aadhaar number 
• Bank name  
• Biometric details captured at the time of enrollment

Here’s how AEPS works:

• Once you have linked your Aadhaar card with your bank account, you can visit any business correspondent or AEPS-enabled outlet to conduct transactions. 
• You are required to select the type of service you wish to receive, such as balance inquiry, cash withdrawal, fund transfer, etc.
• After the system verifies the authentication of your Aadhaar card number and biometric details, your requested banking operation will be processed in real-time.

Thus, you can experience a seamless process without any PINs or physical debit cards.

Features & Benefits of AEPS

The AEPS is a secure payment mechanism which has the following features:

• Basic Banking Transactions

Through the Aadhaar Enabled Payment System, all Indian citizens holding Aadhaar cards can perform various types of banking operations. These include bank balance inquiries, cash deposits, cash withdrawals, intrabank and interbank fund transfers, and obtaining mini-bank statements. These types of transactions can also be conducted through banking correspondents.

• Easy to Access

AEPS is a user-friendly service specifically designed to be easily accessible to everyone. Hence, it enables all individuals to comprehend the services and use the system for various types of banking operations as per their requirements.

• Verification of Biometric Details

AEPS ensures that all transactions made through this system are safe and secure by verifying the authentication of the 12-digit Aadhaar number and biometric information (fingerprints and iris scan).

• Empowering all Sectors of Society

AEPS empowers all sectors of society, including the underprivileged, when accessing financial operations. You do not even have to disclose your bank account details to access your respective accounts. Thus, Aadhaar-linked bank accounts ensure your security and privacy.

• Bank Account Privacy

Aadhaar Enabled Payment System adheres to bank account safety and privacy measures. Thus, whenever you opt for a banking operation through AEPS, the system can process your request without any bank account details, physical debit cards or PINs.

• Access to Bank Accounts

The Aadhaar Enabled Payment System eliminates the need to visit bank branches in person. Thus, it enables easy access to your bank accounts by using your unique Aadhaar card number and biometric details.

• Better Security

AEPS is one of the most reliable ways to conduct banking operations since it ensures enhanced protection while processing your requested transactions. All banking operations through AEPS are processed only after verifying the authentication of the unique identification number of the Aadhaar card and biometric information of the customer.

• Reach to Remote Areas

AEPS also facilitates easy and accessible transactions for customers in remote areas. This is made possible through the deployment of micro Point of Scale (PoS) machines in secluded areas and villages, enabling the users of those locations to access financial services as well.

AEPS Services

Some of the major services that customers can access through the Aadhaar Enabled Payment System include the following:

• Cash Deposit

Customers can conveniently deposit cash into their bank account linked to their Aadhaar card at any micro ATM.

• Cash Withdrawal

You can also access your bank accounts linked to your Aadhaar card and withdraw cash from them using your Aadhaar number at micro ATMs.

• Balance Enquiry

With the help of your unique Aadhaar number and biometric details, you can opt for AEPS facilities to check your bank balance from time to time.

• Aadhaar to Aadhaar Fund Transfer

One of the key advantages of AEPS is that it enables you to safely transfer funds from your Aadhaar-linked bank account to other bank accounts that are also linked to the Aadhaar cards of respective customers.

• Mini Bank Statements

Through the AEPS, users can also access requests for banking operations, like receiving mini-bank statements. It enables you to receive a summary of your recent transactions to manage your finances better.

• BHIM Aadhaar Pay

Users are also allowed to make cashless payments through AEPS at any merchant store using their unique Aadhaar number.

The other services offered by the AEPS are as follows:

• eKYC
• Tokenisation
• Aadhaar seeding status
• Authentication

How to Use an Aadhaar Enabled Payment System?

All users who have their bank accounts linked with their Aadhaar cards can use the Aadhaar Enabled Payment System by following the below simple process:

• Navigate to a micro ATM or a banking correspondent at your location.
• Enter your 12-digit unique Aadhaar number.
• Now select the ‘Type of Transaction’ you wish to opt for and provide the name of  the bank.
• Enter the transaction amount to proceed with the process.
• Authenticate your biometric information (fingerprints and iris scan) to confirm your requested payment.

You shall receive an auto-generated receipt upon the successful completion of your requested transaction.

AEPS Cash Withdrawal Process

When you want to withdraw cash through AEPS, you must visit your nearest micro ATM, enter your unique Aadhaar number, select the transaction as cash withdrawal, enter the amount and validate your withdrawal with your biometric details.

Therefore, you can opt for cash withdrawal through AEPS without any physical cards or PINs. Nevertheless, some of the major information that you will need in the process includes your 12-digit unique Aadhaar number, IIN or Banker’s Issuer Identification Number (IIN) and your fingerprints or iris scan.

Aadhaar Enabled Payment System (AEPS) Charges

The charges involved in the AEPS include the following:

• As per the policies for charges mandated by UIDAI or cash withdrawal through the Aadhaar Enabled Payment System, there are no charges applicable for this service as of now.
• In the case of fund transactions, the bank may charge a fee of up to 1% of the transaction amount. The minimum fee can be Rs. 5, while the maximum fee can be Rs. 15.

AEPS Transaction Limit

Various banks have set a daily limit of Rs. 50,000 on total transactions. The maximum withdrawal limit per AEPS transaction is Rs. 10,000, as mandated by the NPCI.

Important Points to Consider While Using AEPS

Some of the major points you must keep in mind while using the Aadhaar Enabled Payment System include the following:

• Aadhaar Linkage

One of the major points to remember while opting for banking operations through AEPS is that your bank account must be linked to your Aadhaar card. All the financial activities that you can request through the AEPS will only be available when bank accounts are linked with the user's Aadhaar cards.

• Active Bank Accounts

All users must ensure their Aadhaar-linked bank accounts are active when requesting banking operations through AEPS, as these facilities are exclusively available for customers with Aadhaar-linked active bank accounts.

• Primary Account Usage

In case you have more than one bank account linked with your Aadhaar card, you must remember that AEPS transactions can only be conducted through one account. This is usually the primary bank account of the customer. Thus, ensuring your primary bank account is active is important if you have multiple bank accounts linked with your Aadhaar card.

AEPS, or the Aadhaar Enabled Payment System, is one of the major inventions by the National Payments Corporation of India (NPCI) that aims to encourage people to indulge in cashless transactions. From cash withdrawals to obtaining mini bank statements, you can have it all without visiting the bank branch in person. So make sure you have your bank accounts linked with your Aadhaar card to avail of these services.

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