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 fund transfer, all the services can be availed through bank correspondent of any bank.
Information Required for Aadhaar 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 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.
BHIM Aadhaar Pay:
Bhim Aadhaar Pay is an easy mode of cashless transaction and allows the customers to pay the merchant of any bank just through biometric authentication (fingerprints) from Aadhaar enabled bank account of customer as well as merchant, as the interface of the app uses Aadhaar to connect with the customer and the merchant’s bank account. Due to this payment app, users don’t need a debit card. Bhim Aadhaar Pay platform was launched on the birth anniversary of Dr.Bhim Rao Ambedkar.
This platform is the next step to UPI payment system, because in UPI payments, authentication is done through linked mobile number but here biometric records are used for authentication. Just like there are many UPI payment apps, similarly there are many BHIM Aadhaar Pay apps too. Even some banks also launched merchant Aadhaar pay apps for their customers, such as ‘SBI Aadhaar Pay’ app was launched in February 2017 and is available on the google play store. However, every bank's app is not on play store. In such cases, the merchant needs to contact the bank, and the bank will give the download link after verification.
How Does BHIM Aadhaar Pay App Work?
BHIM Aadhaar App is for merchants; so, customers don’t need to install it in their mobile phones. They can pay at shops through the app by using thumb impressions. However, merchants need to install it on their android or iOS mobile phones. To receive the payments from customers, merchants, as well as customers who are doing payment, need to link their bank accounts to Aadhaar. As BHIM Aadhaar Pay app is based on Aadhaar Enabled Payment System, it will use the Aadhaar number to connect with the customer and the merchant.
The benefit of this app is that merchants don’t need POS machine and the customers don’t face the hassles of keeping a card, swiping it and entering the pin.
How to Download and Setup the BHIM Aadhaar Pay App?
Cashback and Referral Offers:
The Government has set a budget of Rs 495 crores for cashback and referral schemes launched for the normal users and merchants. To promote BHIM Aadhaar app among merchants, the government is giving a cashback of Rs 300.