The Aadhaar Enabled Payment System (AePS) is a revolutionary initiative by the Indian government that leverages Aadhaar authentication for secure and hassle-free digital transactions. It empowers bank customers to carry out financial transactions on a micro-ATM using their Aadhaar number and biometric authentication.
Benefits of AePS or Aadhaar Enabled Payment System Services
- Financial inclusion: AePS bridges the gap between urban and rural areas, providing financial services to the remotest corners where traditional banking infrastructure is limited.
- Convenience: Users can conduct various banking activities such as cash withdrawals, deposits, balance inquiries, and fund transfers without visiting a bank branch.
- Secure transactions: Biometric authentication ensures enhanced security, reducing the risks associated with PIN-based transactions.
- Cost-effective: AePS reduces transaction costs for banks, making it a cost-effective solution for financial institutions and customers alike.
Security features of AePS
- Interoperability: AePS allows customers of any bank to access their Aadhaar-linked accounts through AePS-compliant micro-ATMs, promoting interoperability between different banks.
- Authentication options: Biometric authentication using a fingerprint or iris scan ensures secure transactions and reduces the chances of identity fraud.
- Service availability: AePS services are available 24/7, providing customers with round-the-clock access to banking services.
- Multiple transactions: Users can perform various transactions, including cash withdrawals, balance inquiries, fund transfers, and more through AePS.
How does an AePS transaction work
AePS functions through a network of micro-ATMs, which are essentially modified Point of Sale (POS) terminals. Here is a simplified breakdown of how AePS operates:
- Aadhaar authentication: To initiate a transaction, the customer provides their Aadhaar number and selects the type of transaction at the Micro-ATM.
- Biometric verification: The customer then undergoes biometric authentication by providing their fingerprint or iris scan for verification.
- Transaction processing: Upon successful authentication, the transaction is processed, allowing the customer to perform various banking activities like cash withdrawal, fund transfer, balance inquiry, etc.
- Confirmation: Once the transaction is completed, a confirmation message is sent to the customer along with a printed receipt.
What is important for AEPS to work
To utilise the AePS facility, individuals need:
- Aadhaar number: Users must have an Aadhaar number linked to their bank account.
- Biometric data: Fingerprint or iris scan data linked with their Aadhaar for secure authentication.
- Bank account: An active bank account linked with Aadhaar for transactions.
- Micro-ATM access: Access to AePS-enabled micro-ATMs provided by banks or authorised financial institutions.
Banking services offered by AePS
Cash deposit
Cash withdrawal
Balance enquiry
Mini statement
Aadhaar to Aadhaar fund transfer
Authentication
BHIM Aadhaar Pay
Other Services offered by AePS
Here are the various other services offered by AePS
eKYC
Finger detection
Demo authorisation
Tokenisation
Aadhaar seeding status
The Aadhaar Enabled Payment System has emerged as a game-changer in the Indian financial landscape, promoting financial inclusion, and digital empowerment. Its user-friendly approach, coupled with secure authentication, has made it a preferred choice for millions, especially in rural and underserved areas.
As the Indian government continues to drive initiatives promoting digital financial services, AePS stands tall as a cornerstone in realising the vision of a digitally empowered and financially inclusive society.
