A type of digital payment system known as Aadhaar-based payment systems (AePS) makes use of the Aadhaar biometric authentication system to process payments. Aadhaar is a 12-digit extraordinary personality number gave by the Interesting ID Authority of India (UIDAI).
The AePS framework utilizes the Aadhaar verification foundation to work with money related exchanges. The Unified Payment Interface (UPI) platform serves as its foundation.
AePS is a model that was developed by NPCI and led by the bank. It uses Aadhaar authentication to allow online transactions at Micro ATMs, kiosks, and mobile devices through an authorized Business Correspondent (BC) of any bank.
What are the advantages of the Aadhaar-based Payment System (AePS)?
The National Payments Corporation of India (NPCI) has specifically designed an Aadhaar-based Payment System as a virtual response to several methods of service requests by providing an authentication gateway for all account holders who are linked to Aadhaar.
Those who have an Aadhaar Enabled Bank Account, or AEBA, and have their Aadhaar number linked to a bank account are eligible to use the AePS service. To set up an AEBA with a bank that is authorized and take advantage of the AePS service suite, customers need to have a valid Aadhaar number.
AePS can be used for basic banking transactions like checking a balance, withdrawing cash, and sending money through a Business Correspondent.
A list of the services that are available under AePS include:
Balance Enquiry
Cash Withdrawal
Cash Deposit
Aadhaar to Aadhaar funds transfer
Payment Transactions (C2B, C2G Transactions)
A step-by-step guide on what customers need to do an AePS transaction
Aadhaar Number
Bank Name
Biometric captured during their enrollment
Transaction Type (if needed)
Benefits of the Aadhaar-Based Payment System
Customers can take advantage of doorstep banking, by allowing the merchant to receive the customer’s Aadhaar number/Virtual ID and biometric information in exchange for the purchase of goods and services, it also facilitates merchant transactions.
Do you need an Aadhaar Card to conduct business?
Although having an Aadhaar card is not required, linking your Aadhaar number to your Bank Account is absolutely necessary in order to complete a transaction.
Can customers file a complaint if a transaction fails?
Customers can file a complaint or dispute with the account-holding bank. Through the Dispute Management System of the NPCI, it will escalate the issue to the relevant bank.
