Aadhaar Enabled Payment System (AePS)

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Aadhaar Enabled Payment System (AEPS) enables Aadhaar card holders to make seamless financial transactions using Aadhaar-based authentication. This payment system enables you to carry out financial transactions using your Unique Identification Number or UID. All Aadhaar card holders can use AePS to make payments, transfer money, make deposits, withdraw money, etc.

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What is AePS?

Aadhaar Enabled Payment System or AePS is a system developed by the National Payments Corporation of India (NPCI) that allows people to carry out financial transactions on a Point of Sale (PoS) or Micro-ATM by furnishing just their Aadhaar number and verifying it with the help of their fingerprint/iris scan.

People do not have to mention their bank account details to carry out these transactions. With the help of this payment system, people can send funds from one bank account to another simply through their Aadhaar numbers.

As the system works on a centralised server, people can send money from their account to any account irrespective of the bank in which the receiver’s account is operated.

This system adds another layer of security to financial transactions as bank details are no longer required to be furnished while carrying out these transactions and biometrics of the account holder will be required for authorizing the transaction.

Benefits of AePS

Given below are some key of benefits of AePS:

• Banking as well as non-banking transactions can be performed through a banking correspondent (BC)
• Banking correspondents of one bank can perform transactions for other bank accounts as well
• People do not have to furnish their debit/credit card for making transactions through AePS
• The fingerprint is needed for transaction authentication which makes it safer
• Micro PoS machines can be taken to distant places enabling people in remote villages to make transactions instantly

* Terms and conditions apply

What Facilities Can be Availed through AePS

People can avail the following facilities or services through AePS:

• Cash Withdrawal
• Cash Deposit
• Balance Enquiry
• Aadhaar to Aadhaar Fund Transfer
• Mini Statement
• Aadhaar Authentication
• BHIM Aadhaar Pay
• Demo Authentication
• eKYC
• Best Finger Detection/IRIS Detection
• Tokenization
• Aadhaar Seeding Status

How to Use AePS

The process of using AePS is quite easy. You have to follow these simple steps:

1. Visit a banking correspondent in your area. It doesn’t matter if he is an executive of the bank you don’t have an account in, you can make transactions through AePS.
2. Enter your 12-digit Aadhaar number in the PoS Machine.
3. Select the transaction type – cash deposit, withdrawal, mini statement, fund transfer, balance enquiry, eKYC, etc.
4. Select the bank name.
5. Enter the amount for the transaction (if any).
6. Authenticate the transaction using your biometric – fingerprint or iris scan.
7. The transaction gets completed in seconds and a receipt will be given to you by the banking correspondent.

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Important Points to Remember while using AePS

You should remember these points before you use the new payment method:

• Your bank account should be linked with Aadhaar if you want to avail this service.
• If you have more than one account in the same bank, only the primary account will be used under AePS.
• No OTP or PIN is required for making transactions through AePS.
• AePS supports transactions between Aadhaar-linked bank accounts only.
• Multiple bank accounts can be linked with Aadhaar to avail AePS facility. However, only one account per bank can be used for availing this facility.
• The cutover of transactions done through AePS takes place at 11 pm every day. Transactions done before this time for the day are included in this settlement.

AePS Fund Transfer Limit

There is no minimum limit set by banks or NPCI for the transfer of funds through AePS.

As per the NPCI circular published on 2nd November 2023, the maximum cumulative limit for each account has been set to Rs. 50,000. This limit is inclusive of inward and outward fund transfer through AePS.

Why Did the Government Launch AePS

The government has set a target of bringing all citizens in the banking framework. However, it is not feasible to open bank branches in all remote villages. Thus, the government has come up with AePS where people from far-off places will easily be able to send/receive money and avail other financial and non-financial banking facilities with the help of Micro ATMs and banking correspondents.

Transactions done through this channel need biometric authentication through best fingerprint/iris detection. Signatures can be forged but fingerprints/iris can’t. This has made transactions safer.

People won’t have to carry their bank’s passbook or debit card for fund transfers as only Aadhaar number and your biometrics would be required for carrying out the transactions making it easy for all to use this service.

FAQs on AePS (Aadhaar Enabled Payment System)

Q. Who can use AePS?

All Indian residents having a valid Aadhaar card and a linked bank account are eligible to use this payment service.

Q. How can a user enable this service?

To start using AePS, you need to first link your bank account with Aadhaar. After that, you have to contact your bank and let them know that you wish to start using AePS.

Q. What details are mandatorily required to carry out an AePS transaction?

The following details are required to carry out an AePS transaction:

• Bank name
• Aadhaar number
• Biometrics captured during enrollment

Q. Should the payee/beneficiary also have AePS to receive funds?

No, it is not necessary for the payee to enable his account to receive funds through AePS.

Q. Can I use this service without Aadhaar card?

No, Aadhaar card is a mandatory requirement to access this service.

Q. Who is a business correspondent or BC?

Business correspondent or banking correspondent is an approved bank agent providing basic banking services using a Micro ATM (terminal) to any bank customer who wishes to avail this service.

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First published on 1st May, 2018