AePS, or Aadhaar enabled payment system, is a payment mechanism that allows Aadhaar cardholders to conduct banking transactions. It is an initiative that empowers all sections of society by allowing them to conduct banking transactions using an Aadhaar card. To complete the transaction, the Aadhaar card holder must provide biometric information at PoS or micro ATMs. The transaction will take place through the bank account linked with the Aadhaar card.
In this blog, we will go over AePS in detail, including its benefits and how to use it.
What is AePS?
The National Payments Corporation of India created the Aadhaar-enabled payment system. Users can use the service to make transactions on a micro-ATM by simply providing biometric information and an Aadhaar number. The following are the specifics of AePS-
- AePS is a mechanism that allows an Aadhaar card holder to make transactions through an Aadhaar-linked bank account in the same way that a debit/credit card transaction does
- The transaction is completed by submitting the Aadhaar card number and biometric details at Points of Sale (PoS) or micro ATMs via any bank’s business correspondent using Aadhaar authentication
- The biometric data can be iris or fingerprint scan
- Users are not required to provide their bank account details to complete the transaction
- AePS enables users to transfer funds from one bank account to another
- AePS transactions are safe and secure because users must submit their biometrics in order to complete the transaction
What are the Benefits of AePS or Aadhaar Enabled Payment System?
The following are the advantages of AePS for all segments of society:
- Aadhaar enabled payment system is easy to use
- It necessitates the submission of biometric data as well as the Aadhaar card number
- It empowers the underprivileged section of the society
- Users are not required to provide their bank details to complete the transaction
- It enables users to easily access their bank accounts using Aadhaar authentication
- AePS is completely safe as one needs to submit biometric data and Aadhaar number
- Micro PoS machines can be taken to remote villages to allow users to easily conduct transactions
Features of AePS
The following are the primary characteristics of an AePS facility:
- The transaction amount will only be deducted from the Aadhaar linked bank account
- The mechanism enables an Aadhaar card holder to perform basic banking transactions such as cash deposit, intrabank to interbank fund transfer, cash withdrawal, balance inquiry, and obtaining a mini bank statement via banking correspondent
What is required to use the AePS facility?
Following are the must-have requirements to use the AePS facility:
- An Aadhaar card should be linked with the bank account
- Aadhaar number
- Fingerprint biometric of the Aadhaar card holder
- Micro ATM
Read More: How to Verify an Aadhaar Mobile Number
How to use the AePS facility?
An Aadhaar card holder who has a linked bank account can use the AePS facility to make transactions quickly and easily. All he/she needs to do is follow the instructions:
- Pay a visit to your local banking correspondent
- Enter Aadhaar number in the PoS machine
- Select the transaction type and enter the bank’s name
- Enter the transaction amount to complete the transaction
- Following that, provide your biometrics to confirm the payment
- A receipt will be issued upon completion of the transaction
- A banking correspondent is an intermediary appointed by the bank to provide banking services in areas where the bank does not have a branch.
Things to keep in mind while using AePS
Keep the following things in mind when using the AePS facility:
- A bank account must be linked to an Aadhaar number in order to use the AePS service
- PIN or OTP is required to complete the transaction
- Only the primary account can be used to make transactions if multiple accounts are linked to Aadhaar
- This facility is only available to Aadhaar-linked bank accounts
Is it complex to use AePS?
It is actually quite easy to use the AePS facility as an Aadhaar card holder needs to provide his/her Aadhaar number and biometric data.
What was the objective of the Aadhaar enabled payment system?
The objective of the Aadhaar enabled payment system was to reach every corner of the country where there are no bank branches either through micro ATMs or bank correspondents. It was made to let people make transactions effortlessly just by providing an Aadhaar number and biometric data.
Is it safe to use AePS?
Yes, it is safe to use AePS as an Aadhaar card holder needs to submit his/her Aadhaar number and biometric data to complete the transaction.
Is it compulsory to link a bank account with an Aadhaar card?
Yes, it is compulsory to link a bank account with an Aadhaar card as the transaction will be completed through the linked bank account.
Who is a banking correspondent?
A banking correspondent is appointed by the bank to extend banking services to the areas where there is an absence of a bank’s branch.
What are the services offered by AePS?
Intra and interbank fund transfer, cash withdrawal, balance enquiry, cash deposit, etc. are the services provided by AePS to the Aadhaar card holders.