Aadhaar-based payment systems (AePS) is a type of digital payment system that uses the Aadhaar biometric authentication system for making payments. Aadhaar is a unique identification number. The ABPS leverages the Aadhaar authentication infrastructure to enable transactions and is based on the Unified Payment Interface (UPI) platform. AePS is a bank-led model developed by NPCI, which allows online transactions at Micro ATM/Kiosk/mobile devices through the authorised Business Correspondent (BC) of any bank using Aadhaar authentication.
Business Correspondents are authorised (by banks) entities who represent the bank and who have Micro ATM devices to facilitate customer transactions.
Benefits Of Aadhaar-Based Payment System
This solution has been designed by NPCI to handle various kinds of service requests effectively by enabling an authentication gateway for all Aadhaar linked account holders.
People having an Aadhaar number linked to a bank account – referred to as an Aadhaar Enabled Bank Account (AEBA) – can utilise the AePS service.
Customers need to have a valid Aadhaar number through which they can set up an AEBA with an authorised bank and enjoy the AePS service suite.
AePS is a payment service that allows a bank customer to use Aadhaar as his/her identity to access his/her Aadhaar enabled bank account and perform basic banking transactions like balance enquiry, cash withdrawal, remittances through a Business Correspondent.
What Are The Services Available Under AePS?
- Balance Enquiry
- Cash Withdrawal
- Cash Deposit
- Aadhaar to Aadhaar funds transfer
- Payment Transactions (C2B, C2G Transactions)
What Does A Customer Require To Do An AePS Transaction?
- Aadhaar Number
- Bank Name
- Biometric captured during their enrollment
- Transaction Type (If needed)
Benefits Of Aadhaar-Based Payment System
It allows the customer to have doorstep banking and do basic banking transactions without the need to visit any bank branch, carry cards or remember PIN/passwords.
Among other benefits, it facilitates merchant transactions by allowing the merchant to accept the Aadhaar number/Virtual ID and biometrics of the customer for the purchase of goods and services through Aadhaar based biometric authentication.
Does The Customer Need To Carry An Aadhaar Card For Transacting?
Carrying Aadhaar card is not mandatory but linkage of Aadhaar Number with Bank account is a prerequisite for transaction to be processed successfully.
Where Do Customers Register A Complaint For Failed Transaction?
The customer can raise a dispute/complaint with the bank they hold the account. Bank will further raise it with the concerned bank via NPCI’s Dispute Management System.
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