Aadhaar Enabled Payment System (AEPS) or AEPS cash withdrawal, created by the umbrella organization for digital transactions NPCI-National Payment Corporation of India, 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.
AEPS Cash Withdrawal - Services Offered
Here are the various objectives and AEPS that can be availed by the customers:
- The Aeps system enables customers to access Aadhaar-linked bank accounts to do operations like depositing cash, withdrawing money, intrabank or interbank fund transfer, balance inquiry, and obtaining a mini statement.
- It contributes to the Government of India’s and the Reserve Bank of India’s objective of increasing financial inclusion and promoting payment electrification.
- It also makes it easier to disburse cash under different government schemes like NREGA, Social Security pension, Handicapped Old Age Pension, and so on.
- Finally, it attempts to lay a solid framework for Aadhaar-based banking services.
Other Services Offered by AePS
AEPS also offers the following services:
- eKYC
- Tokenization
- Aadhaar Seeding Status
Banking Services
- Cash Deposit
- Cash Withdrawal
- Balance Enquiry
- Mini Statement
- Aadhaar to Aadhaar Fund Transfer
- Authentication
- BHIM Aadhaar Pay
How to Use Aadhaar Enabled Payment System?
Step 1: Go to a mini ATM or a banking representative.
Step 2: Enter your Aadhaar number and the name of your bank.
Step 3: Determine the type of transaction you wish to do.
Step 4: Verify your identity with a fingerprint or an iris scan.
Step 5: Retrieve your receipt.
AEPS Cash Withdrawal Process
The AEPS machine functions similarly to a POS machine. Instead of a debit/credit card pin, the retailer must enter the client’s Aadhaar number and validate the transaction using biometric data from the consumer.
To carry out an AEPS transaction, you will need the following formation:
- IIN or Bank’s Issuer Identification Number
- Aadhaar No.
- Fingerprint or Bio metrics
- Micro ATM
- Assisted Mode
Aadhaar Enabled Payment System (AEPS) Charges
AEPS transaction costs are nil for you as a client, and you are not required to pay anything to use this service. Depending on the bank’s decision, the Merchant or Banking Correspondent may be charged or compensated. The transaction cost is split into the following categories:
- The UIDAI charges a very little cost.
- The settlement fee charged by NPCI ranges from 15 to 25 paise.
- Banks may charge up to 1% of the total transaction value. The minimum and maximum costs are INR 5 and INR 15, respectively.
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 theft of this technology. Many banks have imposed a daily restriction of INR 50,000 on total transactions made by everyone; however, as previously stated, this limit may vary from bank to bank.
Things to Consider in AEPS
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.