The Government of India is working day and night to promote cashless transactions and thus, certain models has been introduced for the said purpose, one of them being Aadhar Enabled Payment System.
The key objective of launching AePS is to bring maximum eligible citizens under the banking framework. As it is not feasible to open bank branches across all the remote villages, thus, the government has come up with the idea of introducing the Aadhar Enabled Payment System in India for easier access to banking services, including both financial and non-financial facilities.
Basically, Aadhar Enabled Payment System, abbreviated as AePS, is a bank-led model that allows online interoperable financial transaction at Point of Sale (PoS) or Micro ATM through the Bank Mitra or Business Correspondent (BC) using the Aadhar authentication. With the help of AePS, an individual can carry up to 6 types of transactions, where some banks have a per day transaction limit of up to Rs.50000 using the AePS.
Services offered under AePS include:
- Balance Inquiry
- Cash Withdrawal
- Mini Statement
- Cash Depository
- Best Finger Detection
- Aadhar to Aadhaar Fund Transfer
What is required to carry out AePS transactions?
- Authentic Aadhar Number;
- Identifying the bank; and
- Fingerprints of the customer at the time of enrolment.
What is the process of AePS transactions?
- First of all, user is required to provide their Aadhar number details, fingerprint, and financial transaction via a micro ATM.
- Secondly, the details shared will be sent to the UIDAI in an encrypted form through a Bank Switch platform.
- UIDAI will verify and authenticate the details and the result for the same will be reflected either with a Yes or No to process with the request.
- If a response is No, user needs to try again with authentic details and if the response is Yes, then the respective bank will initiate the required authorization.
How to process AePS transactions?
- Visit the nearest bank irrespective of the fact that whether you hold an account with the bank or not.
- Enter 12 digit unique Aadhar number at the PoS machine to process the transaction request.
- Of the given menu, select the type of transaction (mentioned above).
- Select the bank and enter the amount of transaction to proceed further.
- Provide biometric details (fingerprint) to authenticate the transaction.
Once the transaction has been successfully completed, collect the receipt from the bank