As the name suggests, the aadhar enabled payment system is the system that uses UIN or aadhar number to carry out financial transactions. Since aadhar has been made mandatory, the government is trying to make its importance in all the sectors so that everything related to a person can be gathered and seen at one place. By looking at aadhar number for a person, all his accounts, mobile numbers etc. can be traced and known. AEPS works like other payment systems where you can deposit cash, withdraw cash, transfer funds, receive funds and inquire about your balance. All the services can be availed by authenticating your aadhar number. It is an initiative by NPCI to promote cashless transfers and make India digitally active. All transactions can be carried out through micro ATM except fund transfer that requires a physical bank visit. It is obvious that if you wish to carry out a transaction using AEPS, your account must be linked with Aadhar.
Features and benefits
- One step verification using aadhar and biometric data
- Safe and secure payment option
- Can be operated across various banks
- Caters to the underbanked section and promotes majority inclusion
- Easy access to all bank accounts
- Can be carried out through banking correspondents
- No other bank details required
- Micro PoS devices can be taken to remote areas to carry out transactions
- Fund transfer (aadhar to aadhar)
- Cash withdrawal
- Balance enquiry
- Payment transactions
How to get?
- Provide KYC information to open a new account.
- Link aadhar number with the bank account.
Steps to use AEPS
- Visit a micro ATM or banking correspondent.
- Provide aadhar number and name of your bank.
- Choose the type of transaction.
- Provide authentication through fingerprint or iris scan
- Collect your receipt
It is like a POS machine that uses the biometric data like fingerprint or iris scan and aadhar number to authenticate the user instead of a debit/credit card pin.
The following information is required to carry out an AEPS transaction.
- Bank issuer’s identification number or name
- Aadhar number
- Fingerprint or Iris Scan
AEPS: Points to remember
- Your account must be linked to aadhar number if you wish to use this service.
- In case of more than one account, the primary account is used for AEPS.
- No OTP or ATM PIN is required to carry out the transactions.
- The transactions can be carried out across aadhar linked accounts.
- You can link multiple accounts but only one account per bank can be used.