Aadhaar Enabled Payment System (AEPS)

The Aadhaar Enabled Payment System (AEPS) is a dependable and safe mode of payment that allows users to conduct transactions using their Aadhaar number and biometric verification. Initiated by the government, AEPS aims to ensure that all citizens can avail fundamental banking services economically, fostering financial inclusion.

What is Aadhaar Enabled Payment System?

AEPS, standing for Aadhaar Enabled Payment System, is a banking service that facilitates customers to carry out essential banking operations like withdrawals, balance inquiries, and transfers simply with their Aadhaar number and biometric details. This system operates round the clock, providing the flexibility to transact at any time and from any location.

One of the key features of AEPS is the ability to withdraw cash using Aadhaar and biometric verification, eliminating the need for a physical ATM card. This system supports basic banking activities, including cash withdrawals, balance checks, and fund transfers, through an AEPS-enabled banking agent.

How to access AEPS?

AEPS stands for Aadhaar Enabled Payment System. It’s a way to use your Aadhaar number, which is like a personal identification number, to do your banking. Before you can use AEPS, you have to link your Aadhaar number to your bank account. You can do this at your bank or with a person who does banking services but isn’t at the bank. AEPS lets you make transactions or handle your money with your Aadhaar number.

AEPS also includes an online portal for users to manage their accounts and transactions using Aadhaar and biometrics. Customers can inquire about their account balance through AEPS, providing a convenient alternative to traditional passbook updates.

Following a successful AEPS transaction, such as cash withdrawal, customers receive a confirmation via SMS on their registered mobile number. Several mobile applications support AEPS, allowing users to perform banking transactions through their smartphones using Aadhaar authentication.

What all is Possible with AEPS?

AEPS also facilitates online cash withdrawals using Aadhaar, offering a digital alternative to traditional ATM withdrawals. Similar services are available through AEPS-compatible mobile apps, providing secure and convenient cash access without a physical card.

AEPS transactions refer to the basic banking operations enabled by this system, such as withdrawals, balance inquiries, and transfers, all secured through Aadhaar authentication. This digital payment system, developed by the National Payments Corporation of India (NPCI). It is designed to extend banking services to underserved areas. It Is ensuring 24/7 availability even in remote locations.

AEPS ensures secure and efficient banking transactions, making it a preferred option for both users and providers. Customers need to register their Aadhaar with their bank to use AEPS services. Which can be accessed through any AEPS-enabled provider.

Smart Group is pioneering in assisting new startups to seamlessly integrate with the Aadhaar Enabled Payment System (AEPS), enabling them to offer secure and inclusive financial services. Their expert guidance simplifies the technical complexities of AEPS integration, empowering startups to expand their service offerings. With Smart Group’s support, these emerging businesses are positioned to contribute significantly to financial inclusion by facilitating easy access to banking services across diverse demographics.

RBI Mandate

The Reserve Bank of India (RBI) regulates AEPS transaction limits, currently set at Rs. 10,000 per transaction and Rs. 25,000 per day for each account. However, transaction limits may vary among service providers, so it’s advisable to verify with your specific provider.

Transaction fees for AEPS are also governed by the RBI. With a cap of Rs. 15 per transaction. Nonetheless, service providers might impose additional charges, so users should confirm fees before utilizing the services.