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 anymore. Micro ATMs will be at your doorstep through Aadhaar Enabled Payment System (AEPS). It is a method of getting money from the bank account without using a debit card and signature. It can be said that AEPS is a bank-led model that facilitates the transaction from Micro ATM or POS through a business correspondent of any bank using the Aadhaar authentication system.
In an effort to increase the financial inclusion in the country through Aadhaar authentication and make banking accessible to the marginalized and excluded section of the society through Aadhaar 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 Aadhaar Enabled Payment System:
Services Offered Through AEPS:
There are various services that are provided by AEPS:
Note : Except for fund transfer, all the services can be availed through bank correspondent of any bank.
Information Required for Aadhaar Enabled Payment System:
For using AEPS, the Aadhaar card should be linked with a bank account mandatorily. Here is a list of information required for using AEPS:
Why is Aadhaar Required for Authentication?
At the time of Aadhaar enrolment, fingerprints and iris scan gets captured for biometric authentication, and the biometric data is linked to the Aadhaar number. No two persons can have the same biometric data and Aadhaar number, due to which, Aadhaar number verification can be done by fingerprint scanning at the time of banking through AEPS. Hence, Aadhaar authentication helps in secured banking.
Steps of Doing Transactions through AEPS:
Charges of AEPS:
AEPS can be quite costly in comparison to free UPI payments and can go up to Rs.15 per transaction when it will becomes chargeable; but as of now, it is free. The union government is bearing the cost of AEPS payments till 31st December 2019.