Here’s Everything You Need To Know About Aadhaar Enabled Payment System

Aadhaar

The incorporation of online payment systems has already made things easier for commoners. The Aadhaar Enabled Payment System (AEPS) was introduced to enhance security and reduce the risk of fraudulent activities. This particular payment system is available to all the sections of society who possess an Aadhaar card. 

In this article, you will find the specifics of this payment system, including the procedure and benefits of using it. Give it a read!

Introduction to AEPS 

AEPS or Aadhaar enabled Payment System is a secure platform for monetary transactions. Consumers can use a micro ATM to carry out these transactions through any bank agent or a business correspondent. The procedure of carrying out transactions via this system is discussed below.

Process of Using AEPS 

Here are the steps you need to follow in order to use the Aadhaar Enabled Payment System and make transactions securely:

Step 1

One can either go to a banking correspondent or visit a micro ATM to begin this procedure.

Step 2

First, he/she needs to provide the bank name and Aadhaar number.

Step 3

Next, one has to choose the type of transaction that he/she wants to carry out.

Step 4

Verification will be required in the next step, and it can be done through an iris or fingerprint scan. 

Step 5

Once the verification process gets over, the individual needs to collect the receipt and keep it for future reference.  

Also Read: Everything You Need To Know About Aadhaar KYC

Services Available and Provided by AEPS

The Aadhaar enabled Payment System offers a host of services that are necessary on a day-to-day basis. Some of these are as follows:

• Payment Transactions (C2G, C2B transactions)
• Cash withdrawal
• Aadhaar to Aadhaar transferring of funds 
• Cash deposit 
• Balance enquiry 

Apart from such service offerings, this payment system comes with certain advantages. Refer to the next section to know the benefits in detail.

Benefits of Using AEPS

Here are some perks you will get when you make use of the Aadhaar Enabled Payment System:

• It is user-friendly and takes just a few minutes to get any kind of transaction or banking service done using Aadhaar authentication.
• AEPS offers a secure mode of payment. With Aadhaar verification, the risk of a fraudulent transaction reduces substantially.
• The system helps the under-privileged segment of India to ensure financial inclusion. 
• AEPS utilises Aadhaar authentication to facilitate disbursements of several government schemes. 

Note that to initiate AEPS transactions, users only need to provide his/her Aadhaar number and the biometric information linked with the same. The same system allows Aadhaar enabled transactions across several financial institutions. 

Also Read: Services Offered By UIDAI

Final Word

A significant benefit of AEPS transactions is that it has no additional cost for the customer. That said, a bank or merchant offering this service has to pay UIDAI and NPCI a certain fee. 

Frequently Asked Questions 

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.

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