Aadhaar-enabled Payment System: How to avail banking services on NPCI platforms; all you need to know

Image result for Aadhaar-enabled Payment System: How to avail banking services on NPCI platforms; all you need to knowAadhaar-enabled Payment System (AePS) has crossed the milestone of over 200 million transactions during July this year. A total of 6.65 crore Indian citizens availed banking services through AePS platform in July, according to an NPCI release.

What is AePS

AePS is a bank-led model which allows basic interoperable banking transactions at Point of Sale (PoS or MicroATM) through the business correspondent (an approved bank agent) of any bank by using Aadhaar authentication.

Under the AePS, there are two forms of payment systems: credit money into the beneficiary’s account; enable account holders to withdraw cash.

How it works

  • To withdraw cash, approach a bank agent with a UID number
  • The business correspondent or agent will then provide basic banking service using a Micro ATM. This is done by entering the customer’s UID number, fingerprints and amount into the micro-ATM.

Why you should use AePS

  • AePS empowers a bank customer to use Aadhaar as an identity to access respective Aadhaar-enabled bank account and perform basic banking transactions like cash withdrawal, intrabank or interbank fund transfer and balance enquiry.
  • To facilitate disbursements of government entitlements like NREGA, social security pension, handicapped old age pension, etc., of any Central or State Government bodies, using Aadhaar and authentication as supported by UIDAI.

What you need for AePS

  • IIN (Identifying the Bank to which the customer is associated)
  • Aadhaar Number
  • Fingerprint captured during their enrollment

Services offered 

  • Cash Withdrawal
  • Cash Deposit
  • Balance Enquiry
  • Aadhaar to Aadhaar Fund Transfer
  • Mini Statement
  • Best Finger Detection

How to use AePS

Step 1: Go to a micro ATM or banking correspondent

Step 2: Provide Aadhaar number and bank name

Step 3: Choose the type of transaction you want to make

Step 4: Provide verification through fingerprint/iris scan

Step 5: Collect your receipt

Benefits of using AePS

  • Easy to use, safe and secure payment platform to avail benefits by using Aadhaar number and biometrics
  • Based on the demographic and biometric/iris information of an individual, it eliminates the threat of any fraud and non-genuine activity
  • Facilitate disbursements of Government entitlements like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies using Aadhaar
    authentication
  • Facilitates inter-operability across banks in a safe and secured manner
  • The model enable banks to extend financial services to the unreached clients beyond their branch network as beneficiaries of the BCs are mostly located at unbanked and underbanked areas.

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Author: Ayaan