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Aadhaar enabled Payment System
Aadhaar enabled Payment System
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Aadhaar authentication is used in AEPS, a bank-led paradigm that enables online interoperable financial transactions at PoS (Point of Sale Micro ATM) through the Business Correspondent (BC) or Bank Mitra of any bank. In addition, UIDAI administers services, including card production, updating, and encryption, in exchange for the Aadhaar card number. The purpose, advantages, features, usage, and transfer cap of AePS are all covered in this article.

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What is the Aadhaar Enabled Payment System (AEPS)?

The full term of AePS is an Aadhaar enabled Payment System. Users just need to provide their biometric data and an Aadhaar number to utilize the AePS service to conduct transactions on a micro-ATM. The details of AePS are as follows:

● An Aadhaar card user may conduct transactions using an Aadhaar-linked bank account using the EPS system, just like they would with a debit or credit card.

● Aadhaar verification is used at Points of Sale (PoS) or micro ATMs to complete the transaction by entering the Aadhaar card number and biometric information.

● The biometric information could include fingerprint or iris scans.

● To complete the purchase, users do not need to enter their bank account information.

AePS allows users to transfer money between bank accounts in a secure manner since they must first submit their fingerprints to complete the transaction.

How do you obtain it?

● To establish a new account, provide KYC (know your customer) information.

● Linking the Aadhaar Number to the Bank Account Service Activation

Activation of the Service

● Fewer than two minutes after Aadhaar seeding

How does one use the AePS facility?

The following prerequisites must be met to utilize the Aadhaar enabled payment system facility:

● Aadhaar numbers for bank accounts should be linked to an Aadhaar card.

● Micro ATM

● fingerprint biometric of the Aadhaar card holder

ATM Machine Price

Basic ATM machine price normally hover around $2,000 to $3,000, while more sophisticated machines with extra capabilities like cheque scanning and wireless networking can cost as much as $5,000 or more. Before making a purchase, it is crucial to conduct extensive research and compare features and prices. Additional expenses like installation, maintenance, and transaction fees may also be present.

Objectives of the AePS Service

The AePS service has the following objectives:

● Customers may access their Aadhaar-linked bank accounts using the AePS system to carry out operations, including cash deposits, withdrawals, interbank or interbank fund transfers, balance queries, and receiving a short statement.

● It makes it easier to distribute money under several government schemes, including NREGA, Social Security pensions, Old Age Pensions for Handicapped People, and others.

● It assists the Indian government and central bank in achieving their goals of advancing financial inclusion and payment electrification.

● Its objective is to provide a strong basis for financial services based on Aadhaar.

What is the maximum AePS cash withdrawal?

The NPCI has set the maximum transaction amount for one AePS financial transaction at Rs. 10,000.

Limit for AePS Funds Transfer

AePS transactions are not subject to any limitations from the RBI. However, some banks have capped the daily total of transactions at Rs. 50,000.

Costs connected to AePS transactions

Transactions using AePS cost a little more than those using UPI. AePS transactions might cost as much as Rs. 15 each. The distribution of the transaction cost is as follows:

● The UIDAI may charge fees in the future, even though it hasn’t done so yet.

● A bank fee of up to 1% of the transaction may be assessed. The lowest cost is 5 rupees, while the highest is 15 rupees.

● A fee of 15 to 25 paisa may be charged by the NPCI for settlement.

As of right now, the Union government is responsible for paying AePS until December 2019. Debit card, UPI, and AePS MDR costs are all covered. AePS transactions are now free of charge.

Things to consider while using AePS

Please keep the following in mind when utilizing the AePS facility:

● A bank account must be linked to an Aadhaar number to use the AePS service.

● The transaction must be completed using a PIN or OTP.

● If numerous accounts are connected to Aadhaar, only the primary account may be utilized for transactions.

● Only bank accounts connected to Aadhaar are eligible for this feature.

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Why did the government start the AePS training program?

All citizens should be integrated into the financial system, according to the government. It is not feasible to open bank branches in every rural region, though. The government, as a result, created AePS. It enables money transfers for those living far away. Moreover, to gain access to additional financial and non-financial banking services using micro ATMs and banking correspondence.

Required Documents for Using the AePS

You don’t need to complete any paperwork or fill out any forms to utilize the AePS. However, the applicant must connect their Aadhaar card to their bank savings account to apply. Here is a list of some of the key paperwork that is needed.

● The number on an Aadhaar card

● Account number

● biometrics

● The bank’s name

Finance 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

● eKYC

● Tokenization

● Aadhaar Seeding Status

Aadhaar Enabled Payment System (AePS) registration

The steps are as follow to sign up for the AePS’s service:

● Visit the bank’s closest branch.

● Your 12-digit Aadhaar card number should be entered into the Point of Sale (POS) device.

● Choose from a variety of transactions, including cash deposits, cash withdrawals, internal and external money transfers, balance inquiries, and microbalance statements.

● Choose the bank, and then enter the transaction amount information.

● Use your scanned fingerprint to verify the transactional data. 

● Get the receipt after the transaction is finished.

FAQs

Who is eligible to utilize AePS?

AePS supports all transfers between financial transactions connected to Aadhaar. To use the AePS service, Aadhaar can be linked to several bank accounts. However, each bank only permits the use of this feature with one account.

AePS offers what kinds of services?

Under AEPS transactions, a variety of services are accessible, including:

● Depositing money

● Cash withdrawals Intra-bank or inter-bank financial transfers

● examination of equilibrium

● Ask for a brief account statement.

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