The Aadhaar Enabled Payment System (AEPS) is a secure banking platform developed by the National Payments Corporation of India (NPCI). It allows individuals to perform basic banking transactions using their Aadhaar number and biometric authentication, without the need for physical bank visits or cards.
Key Features of AEPS
- Interoperable Banking: Access your Aadhaar-linked bank account from any bank’s Business Correspondent (BC) or Micro ATM.
- Biometric Authentication: Authenticate transactions using fingerprint, iris scan, or face recognition.
- No Need for Cards or PINs: Simplifies transactions, especially for those unfamiliar with digital banking.
- Supports Multiple Transactions: Including cash withdrawals, deposits, balance inquiries, mini statements, and fund transfers.
- Government Benefit Disbursement: Facilitates direct transfer of subsidies and pensions to beneficiaries.
Services Offered
- Cash Withdrawal: Withdraw money from your Aadhaar-linked bank account.
- Cash Deposit: Deposit cash into your Aadhaar-linked account.
- Balance Enquiry: Check your current account balance.
- Mini Statement: View recent transactions in your account.
- Aadhaar to Aadhaar Fund Transfer: Transfer funds between Aadhaar-linked accounts.
- BHIM Aadhaar Pay: Make merchant payments using Aadhaar authentication.
How to Use AEPS
- Link Aadhaar to Bank Account: Ensure your Aadhaar number is linked to your bank account.
- Visit a BC or Micro ATM: Approach any Business Correspondent or Micro ATM equipped with biometric authentication.
- Provide Necessary Details: Share your Aadhaar number and specify your bank name.
- Authenticate: Use your fingerprint, iris scan, or face recognition for authentication.
- Complete Transaction: Once authenticated, proceed with your desired banking transaction.
Benefits of AEPS
- Financial Inclusion: Brings banking services to rural and underserved areas.
- Convenience: Eliminates the need for physical bank visits or carrying cards.
- Security: Biometric authentication reduces the risk of fraud.
- Cost-Effective: No transaction fees for customers; minimal infrastructure required.
- Supports Government Initiatives: Streamlines the distribution of government subsidies and benefits.
Security Measures
AEPS transactions are secured through biometric authentication, ensuring that only the account holder can authorize transactions. The system uses the Unique Identification Authority of India’s (UIDAI) authentication services to verify identities.
Where to Access AEPS Services
AEPS services are available at:
- Bank Branches: Most banks offer AEPS services at their branches.
- Business Correspondents (BCs): Authorized agents equipped with Micro ATMs.
- Micro ATMs: Portable devices available in remote areas for banking transactions.
- Post Offices: India Post Payments Bank (IPPB) also provides AEPS services.
Conclusion
AEPS is a transformative initiative that simplifies banking for millions, especially in rural and remote areas. By leveraging Aadhaar and biometric authentication, it ensures secure, convenient, and inclusive access to essential banking services.
