Aadhaar Enabled Payment System (AEPS), 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, a bank-led model, seeks to achieve the following goals:
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.
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:
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 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.
Before you begin utilizing AEPS, keep the following considerations in mind:
The government has set a goal of integrating all residents into the financial system. However, opening bank offices in all distant communities is not possible. As a result, the government has developed AePS, which allows individuals in remote areas to effortlessly send/receive money and access other financial and non-financial banking services through the use of Micro ATMs and banking correspondents.
Transactions made over this channel need biometric identification through the best finger/iris detection available. Signatures may be faked, but fingerprints and iris scans cannot. This has made transactions more secure. People will no longer need to carry their bank’s passbook or debit card for cash transfers because just your Aadhaar number and fingerprints will be necessary to complete the transactions, making it simple for everyone to utilize this service.
Q1. How does a user activate this service?
To begin utilizing AEPS, you must first link your bank account to your Aadhaar number. Then, call your bank and inform them that you intend to begin utilizing AEPS.
Q2. What exactly is AEPS?
AEPS, which stands for Aadhaar Enabled Payment System, is a sort of payment mechanism. The National Payments Corporation of India provides the service (NPCI).
Q3. Who is eligible to utilize AEPS?
This payment option is available to all Indian citizens who have a valid Aadhaar card and a bank account.
Q4. What is the definition of a business correspondent?
A business correspondent is just an authorized bank representative who provides banks with terminal or mini ATM services.
Q5. What exactly is an IIN?
This is a six-digit number that aids in the identification of your bank.