Are you living in an area where going to the bank is a difficult task because you don’t have convenient transport access or you have to travel across towns just for banking? Then don’t worry now as micro ATM will be at your doorstep through Aadhar Enabled Payment System (AEPS). It is a method of getting money from the bank account without using a debit card and signature or it can be said that AEPS is a bank-led model which facilitates the transaction from Micro ATM or POS through a business correspondent of any bank using the aadhar authentication system.
In an effort to increase the financial inclusion in the country through aadhar authentication and make banking accessible to the marginalized and excluded section of the society through aadhar enabled bank accounts or to people living in rural areas from where banks are very far, UIDAI partnered with NPCI, RBI and banks for developing two platforms:
Advantages of Aadhar Enabled Payment System:
Services Offered Through AEPS:
There are various services which are provided by AEPS:
Note : Except for fund transfer, all the services can be availed through bank correspondent of any bank.
Information Required for Aadhar Enabled Payment System:
For using AEPS, aadhaar card should be linked with a bank account as it can’t be done without it. Here is the list of information required for using AEPS:
Why is Aadhar Required for Authentication?
At the time of aadhar enrolment, fingerprints and iris scan gets captured for biometric authentication and the biometric data is linked to the aadhar number. No two persons can have the same biometric data and aadhar number, due to which aadhar number verification can be done by fingerprint scanning at the time of banking through AEPS. Hence, aadhar authentication helps in secured banking.
Steps of Doing Transactions Through AEPS:
Charges of AEPS:
Though AEPS can be quite costly in comparison to free UPI payments and can go up to Rs.15 per transaction when it will become chargeable but as of now, it is free. Union government is bearing the cost of AEPS payment until 31st December 2019.