Do you want to know How to use Aadhaar Enabled payment system (AEPS)?
If yes, then you are in the right place.
In this tutorial, you will know all about Aadhaar Enabled payment system (AEPS).
It’s simple and easy to use Aadhar Enabled payment system for Aadhar card money withdrawal.
What is Aadhaar Enabled Payment System (AEPS)?
Aadhaar Enabled Payment System (AEPS) is a system developed by the National Payments Corporation of India (NPCI.)
AEPS allows people to carry out financial transactions on a Micro-ATM by providing their Aadhaar number and verifying it with the help of their fingerprint/iris scan.
AEPS allows customers to make payments using their Aadhaar number and by providing Aadhaar verification at point of Sale (PoS) or micro ATMs .
This is a simple, secure and user-friendly platform for financial transactions.
This system will add another layer of security to financial transactions as bank details would no longer be required to be furnished while carrying out these transactions and fingerprints of the account holder will be required for authorizing the transaction.
Features & Benefits of AEPS
There are a number of benefits of AePS. Some of those are mentioned below:
- Easy to use
- Safe and secure payment method
- Interoperable across various banks
- Encourages financial inclusion and serves the underbanked sections of society
- Through AEPS, all bank account holders will be able to access their bank accounts through Aadhaar authentication
- With AEPS, the only information required to initiate a transaction is Aadhaar number and biometric information
- AEPS facilitates disbursements of Government schemes like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies using Aadhaar authentication.
Services Offered by AEPS
People can avail a total of 6 facilities through AePS. These are:
- Cash Withdrawal
- Cash Deposit
- Balance Enquiry
- Aadhaar to Aadhaar Fund Transfer
- Mini Statement
- eKYC – Best Finger Detection/IRIS Detection
How to use Aadhaar Enabled Payment System (AePS)?
The process of using AePS is quite easy.
You have to follow these simple steps to use AEPS:
- Visit a micro-ATM or banking correspondent in your area. (It doesn’t matter if he is an executive of the bank you don’t have an account in, you can make transactions through AePS).
- Provide your 12-digit Aadhaar number in the PoS Machine.
- Select the transaction type –withdrawal, mini statement, cash deposit, fund transfer, balance enquiry or eKYC.
- Select the bank name.
- Enter the amount for the transaction.
- Authenticate the transaction using your biometric (fingerprint or iris scan).
- The transaction gets completed in seconds.
- A receipt will be given to you by the banking correspondent.
Remember while using AePS
Remember these things before you use the new payment method:
- Your bank account should be linked with Aadhaar if you want to avail this service.
- If you have more than one account in one bank, only the primary account will be used under AePS.
- No OTP or PIN is required for making transactions through AePS.
- AePS supports transactions between Aadhaar linked bank accounts only.
- Multiple bank accounts can be linked with Aadhaar to avail AePS facility. However, only one account per bank can be used for availing this facility.
- The cutover of transactions done through AePS takes place at 11 pm every day. Transactions done before this time for the day are included in this settlement.
AEPS transaction Limit under Aadhaar enabled payment system
RBI has set no limit for transactions made through AePS. However, various banks have capped the transactions made through AePS to mitigate the misuse of the payment system, if any. Some banks have set a daily limit of a maximum of Rs 50,000 on total transactions.
Government vision on Aadhaar enabled payment system AePS?
The government has set a target of bringing all citizens in the banking framework. However, it is not feasible to open bank branches in all remote villages. Thus the government has come up with AePS where people from far-off places will easily be able to send/receive money and avail other financial and non-financial banking facilities with the help of Micro ATMs and banking correspondents.
Transactions done through this channel need biometric authentication through best finger/iris detection. Signatures can be forged but fingerprints/iris can’t. This has made transactions safer. People won’t have to carry their bank’s passbook or debit card for f1und transfer as only Aadhaar number and your fingerprints would be required for making transactions making it easy for all to use this service.
The AEPS machine works like a Point of Sale (POS) machine. Instead of a debit/credit card pin, the merchant will have to key in the customer’s Aadhaar number and authenticate the transaction using the customer’s biometric data.
FAQs of AEPS Transaction
What is AEPS?
AEPS, expanded as Aadhaar Enabled Payment System, is defined as a type of payment method. The service is being offered by the National Payments Corporation of India (NPCI).
What is Aadhaar?
Aadhaar is and unique number that is assigned to residents of India by the Unique Identification Authority of India (UIDAI).
Who can use AEPS?
All Indian residents holding a valid Aadhaar card and a bank account can use this payments service.
How can a user enable this service ?
To start using AEPS, first link your bank account with your Aadhaar number. Then, contact your bank and let them know that you want AEPS registration free to start using AEPS.
Should the payee/beneficiary also have AEPS to receive funds?
This is not necessary.
Is it possible to link more than one bank account to your Aadhaar card?
Yes. This can be done.
Can those without Aadhaar cards use this service?
What type of bank account do you need to have for AEPS?
The bank account needs to be linked with your Aadhaar.
What is a business correspondent?
A business correspondent is nothing but an approved bank agent offering terminal or micro ATM services to banks.
What is an IIN?
This is a 6 digit number that helps in the identification process of your bank.
What is an Aadhar card money withdrawal?
It is a method by which user withdraw his money via Aadhaar enabled payment system.