What is AePS

Get all the information on AePS and how secure is it.
What is AePS
3 mins read
04 January 2024

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

  1. Financial inclusion: AePS bridges the gap between urban and rural areas, providing financial services to the remotest corners where traditional banking infrastructure is limited.
  2. Convenience: Users can conduct various banking activities such as cash withdrawals, deposits, balance inquiries, and fund transfers without visiting a bank branch.
  3. Secure transactions: Biometric authentication ensures enhanced security, reducing the risks associated with PIN-based transactions.
  4. Cost-effective: AePS reduces transaction costs for banks, making it a cost-effective solution for financial institutions and customers alike.

Features of AePS

  1. Interoperability: AePS allows customers of any bank to access their Aadhaar-linked accounts through AePS-compliant micro-ATMs, promoting interoperability between different banks.
  2. Authentication options: Biometric authentication using a fingerprint or iris scan ensures secure transactions and reduces the chances of identity fraud.
  3. Service availability: AePS services are available 24/7, providing customers with round-the-clock access to banking services.
  4. Multiple transactions: Users can perform various transactions, including cash withdrawals, balance inquiries, fund transfers, and more through AePS.

How does AePS 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:

  1. Aadhaar authentication: To initiate a transaction, the customer provides their Aadhaar number and selects the type of transaction at the Micro-ATM.
  2. Biometric verification: The customer then undergoes biometric authentication by providing their fingerprint or iris scan for verification.
  3. 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.
  4. 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:

  1. Aadhaar number: Users must have an Aadhaar number linked to their bank account.
  2. Biometric data: Fingerprint or iris scan data linked with their Aadhaar for secure authentication.
  3. Bank account: An active bank account linked with Aadhaar for transactions.
  4. Micro-ATM access: Access to AePS-enabled micro-ATMs provided by banks or authorised financial institutions.

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.


1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

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Frequently asked questions

How do I enable AEPS in my bank account?

To enable AEPS (Aadhaar Enabled Payment System) in your bank account, visit your bank branch and link your Aadhaar number with your account. Once linked, you can use AEPS for transactions by providing your Aadhaar number and biometric authentication.

What is the difference between AEPS and UPI?

AEPS (Aadhaar Enabled Payment System) uses Aadhaar number and biometric authentication for transactions, mainly for the unbanked population. UPI (Unified Payments Interface) uses a mobile number and virtual payment address for instant bank-to-bank transfers, offering more flexibility and convenience for digital payments.

What is the maximum withdrawal limit for AEPS per month?

The maximum withdrawal limit for AEPS varies by bank but typically ranges between Rs. 50,000 to Rs. 1,00,000 per month. Specific limits depend on the bank's policies and the type of account held by the customer.