AEPS - Aadhaar Enabled Payment System

Aadhaar Enabled Payment System or AEPS is created by the umbrella organization for digital transactions, i.e.,  NPCI (National Payment Corporation of India). It is a type of payment system that allows financial transactions to be carried out using Aadhaar-based authentication. AEPS is based on the Unique Identification Number or Aadhaar number and allows Aadhaar cardholders to easily begin and finish transactions. It is a method of empowering all sectors of society by making banking and financial services available to everybody through Aadhaar. 

Services Offered by AEPS

Here are the various AEPS services that the users can access:

  • Cash Withdrawal: One can access their bank account and withdraw cash using their Aadhaar number and fingerprint authentication at micro ATMs.
  • Cash Deposit: It also allows users to conveniently deposit cash into their Aadhaar-linked bank account at any micro ATM.
  • Balance Enquiry: One can also check their account balance instantly using their Aadhaar number and biometrics using AEPS.
  • Mini Statement: It also allows users to access a summary of their recent transactions to manage their finances. 
  • Aadhaar to Aadhaar Fund Transfer: One can also send money instantly to any other Aadhaar-linked bank account within India.
  • BHIM Aadhaar Pay: One can make cashless payments at any merchant store using their Aadhaar number with the help of Aadhar enabled payment system.

Other Services Offered by AePS

AEPS also offers the following services:

  • eKYC
  • Tokenization
  • Aadhaar Seeding Status

How to Use Aadhaar Enabled Payment System?

Users who have their Aadhaar card linked to a bank account can use the AEPS portal by following the below-mentioned steps:

Step 1: Go to a mini ATM or a banking representative.

Step 2: Enter your Aadhaar number.

Step 3: Select the 'type of transaction' and specify the bank name.

Step 4: Enter the transaction amount to proceed with the transaction. 

Step 5: Authenticate your biometrics (fingerprint or iris scan) to confirm the payment. A receipt will be generated upon successful completion of the transaction.

AEPS Cash Withdrawal Process

The AEPS machine functions similarly to a Point of Sale (POS) machine. For AEPS cash withdrawal, the retailer must enter the aadhaar number of the client instead of any debit/credit card pin. One must also validate the AEPS transaction using the biometric data from the consumer.

Given below is the essential information that is required to carry out an AEPS transaction:

  • IIN or Bank’s Issuer Identification Number
  • Aadhaar Number
  • Fingerprint or Biometrics

Aadhaar Enabled Payment System (AEPS) Charges

Transactions made through the AEPS portal are considered to be slightly more expensive than UPI transactions. An AEPS transaction can cost up to Rs. 15 per transaction, and this cost is divided as follows:

  • As of now, no charges have been imposed by UIDAI for AEPS cash withdrawals or transactions.
  • The bank may charge a fee of up to 1% of the transaction, with a minimum fee of Rs. 5 and a maximum fee of Rs. 15.
  • NPCI may levy a settlement fee ranging from 15 to 25 paise.

AEPS Transaction Limit

The RBI establishes a standard limit for AEPS transactions, although banks are free to set their own limits for all of these transactions. Few banks have established transaction limits to avoid misuse or fraudulent activities. Many banks have imposed a daily restriction of INR 50,000 on total transactions made by everyone. However, the maximum withdrawal limit set by NPCI for AEPS cash withdrawal is Rs. 10,000.

Things to Consider During AEPS Cash Withdrawal

Before you begin utilizing AEPS cash withdrawal, keep the following considerations in mind:

  • No OTP or PIN is required to complete any transactions using this new technique.
  • If you want to use this service, your bank account must be connected to your Aadhaar.
  • If you have numerous accounts at a bank, the main account will be utilized solely under the AEPS system.
  • The Aadhaar Enabled Payment System only enables transactions between Aadhaar-linked bank accounts, not transactions between unlinked accounts.
  • To use this service, you must link several bank accounts to Aadhaar. However, you will only be allowed to use one account per bank to use the service.
  • Every day, the transaction cut-off time for AEPS transactions is 11 p.m. IST. And any transactions completed before the day’s cut-off time are included in the day’s settlement.
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