What is AePS?
The full form of AePS is Aadhaar Enabled Payment System. It is a bank-led model developed by NPCI to allow online payments at Micro ATM/Kiosk/mobile devices through authorised Business Correspondent (BC) of any bank using Aadhaar authentication. Intending to make India more digitalized, this payment system uses the unique Aadhaar identification number for completing cashless transactions. With AePS, Aadhaar cardholders become eligible to perform various banking activities such as payments, fund transfers, cash withdrawals, and deposits.
Read in Detail about: AePs – Aadhaar Enabled Payment System
AePS makes transactions more secure and user-friendly as users no longer need to have debit or credit cards, they can simply complete transactions by providing their Aadhaar number and biometric details at locations like point-of-sale terminals or micro ATMs. In order to use AePS, an Aadhaar card must be linked to the bank account.
Objectives of AePs
Enhance Financial Inclusions
- Make banking services accessible to populations who have limited access to banking options, particularly in rural and remote areas, and contribute to the goal of the Government of India and RBI to enhance financial inclusion.
Streamline Financial Transactions
- Simplify the process by allowing users to complete basic banking activities such as cash withdrawals, deposits, intrabank or interbank fund transfers, and balance inquiry, using Aadhar authentication.
Ensure Secure Transactions
- Uses Aadhar biometric authentication to enhance security of financial transactions and minimise the risk of fraud and unauthorized access to bank accounts or confidential details.
Support Government Schemes
To enable the distribution of government schemes such as NREGA payments, social security pensions, and old age pensions through Aadhaar authentication, as supported by UIDAI (Unique Identification Authority of India), for any Central or State Government agency.
