Aadhaar number is a unique identification number issued by the Unique Identification Authority of India (UIDAI) to Indian residents. Aadhaar Enabled Payment System or AEPS is a novel payment service/ system introduced by the National Payments Corporation of India (NPCI) to banks and financial institutions that leverage ‘Aadhaar’. The system is designed to help the common man carry out financial and non-financial banking transactions at a micro-ATM through their Aadhaar number, followed by a fingerprint/iris scan for biometric verification.
The new system aligns with the goal of the Government of India (GoI) and Reserve Bank of India (RBI) to promote financial inclusion in the country. AePS service is accessible through Customer Access Points (CSPs) managed by Business Correspondents (BCs) using Point of Sale (POS) technology platforms.
Why Do Bank Customers Need Aadhaar Enabled Payment System (AePS) Service?
All bank customers can avail AePS service using their Aadhaar as his/her identity to access their Aadhaar enabled bank accounts. The list of conveniences for banking customers includes functions like:
- Aadhaar Card Money Withdrawal
- Cash Deposits
- Balance Inquiry
- Aadhaar to Aadhaar Fund Transfer
- Mini Statement
All intrabank and interbank transactions executed through an AePS portal require a transaction receipt to be handed over to the bank customers via BC, who initiates the transaction. The receipt serves as a transaction record dictating the finality status of the transaction.
The service is designed to help customers with their immediate banking needs. It omits out the need to travel long distances in remote locations to make banking transactions. AePS platforms cater to both banking and non-banking transactions that a bank customer wants to perform. Additionally, the absence of limitations to carry out transactions between different bank accounts makes it a popular option for bank customers looking to make an Aadhaar payment. All in all, AePS is a safe and secure way to conduct banking transactions without actually visiting a bank or an ATM.
How Can Aadhaar Enabled Payment System (AePS) Service Benefit Business Correspondents (BCs)?
Business Correspondent (BC) serves as an intermediary appointed by a bank to extend their banking network in the areas where they do not have a branch. A BC is often treated as an integral part of the bank.
The scope of transactions executed via BCs include:
- Small Bank Deposits
- Cash Withdrawals
- Small Value Interbank Remittances
Business correspondents are required to enter a customer’s Aadhaar card details instead of their debit/credit card pin on the AePS Software enabled POS system.
The AePS system also needs the authentication of the customer through biometric data. An AePS Agent can execute an AePS transaction by asking the customers for their Bank’s Issuer Identification Number (IIN) or name, Aadhaar Number, and fingerprints. BCs can scan a customer’s fingerprint using the biometric scanner attached to the AePS POS system for successful Aadhaar authentication.
AePS services are easy to set-up and use to facilitate Aadhar payments. BCs can earn significant side income in the form of commissions from transactions they promote. Installing the AePS Free Portal post the AePS registration can multiply the customer footfall for BC’s primary business.
Best Aadhaar Enabled Payment System (AePS) Service Provider
Renowned as a start-up dealing in digital, financial, and business solutions, Pay1 is an AePS service provider company that helps merchants set up the Aadhaar enabled payment system. The AePS App is a convenient Point of Sale (POS) system. Pay1’s AePS app for merchants provides services pan-India through its appointed BCs.
As an AePS service provider, the company understands how Aadhaar authentication is an integral part of all Aadhaar enabled financial transactions.
Pay1’s state-of-the-art AePS software adheres to the following specifications as prescribed by the UIDAI for Aadhaar authentication:
- -Aadhaar Authentication API
- -Devices Security Specification
- -Biometric Fingerprint Scanner Specifications
The company aims to facilitate the conversion of merchant shops into mini ATMs. Pay1’s Digi Pay Platform allows secure AePS Agent Registration and streamlined AePS Login capabilities. Merchants associated with Pay1 can use UPI and Link-Based Payments free of cost.
The popular AePS Service Provider has also launched its own Pay1 Merchant App to cater to the unorganised Indian retail sector.
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