Aadhaar Enabled Payment System (AEPS)

Aadhaar Enabled Payment System (AEPS)  is a new payment service offered by the National Payments Corporation of India to banks, financial institutions using ‘Aadhaar’.

Aadhaar is a unique identification number issued by the Unique Identification Authority of India (UIDAI) to any resident of India.

Details:

• AEPS is a bank led model which allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication.
• The four Aadhaar enabled basic types of banking transactions are as follows:-

·                     Balance Enquiry

·                     Cash Withdrawal

·                     Cash Deposit

·                     Aadhaar to Aadhaar Funds Transfer

• The customer can link the same Aadhaar number to more than one account subject to bank offering that feasibility. However, only one account per customer in the bank will be the primary Aadhaar linked bank account into which all respective AEPS transactions will be effected.
• The AEPS transactions are real time. The customer would get a transaction receipt for every successful transaction conducted through AEPS

Objectives:

• To empower  a bank customer to use  Aadhaar as his/her identity  to access his/ her respective Aadhaar enabled bank account and  perform basic banking transactions like balance enquiry, Cash  deposit, cash withdrawal,  remittances that are intrabank or interbank in nature,  through a Business Correspondent.
• To sub-serve the goal of Government of India (GoI) and Reserve Bank of India (RBI) in furthering Financial Inclusion.
• To sub-serve the goal of RBI in electronification of retail payments.
• To enable banks to route the Aadhaar initiated interbank transactions through a central switching and clearing agency.
• To facilitate disbursements of Government entitlements like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies, using Aadhaar and authentication thereof as supported by UIDAI.
• To facilitate inter-operability across banks in a safe and secured manner.
• To build the foundation for a full range of Aadhaar enabled Banking services.

How to use Aadhaar Enabled Payment System?

A Customer may visit a BC Customer Access Point. The BC using the Point of Sale (MicroATM) device will be able to process transactions like Cash Withdrawal, Cash Deposit, Balance Enquiry and Fund Transfer by selecting the transaction of their choice. The Customer needs to provide their Aadhaar Number and their bank name or bank IIN number.

• A Point of Sale-PoS (MicroATM) device is used to facilitate customers to make Cash Deposit, Cash Withdrawal, Fund Transfer and Balance Enquiry. The POS device may be a MicroATM.

What is an IIN?

This number identifies your Bank with which you have mapped your Aadhaar number.

• Issuer Identification Number (IIN) is a six digit number. In most banks BC customer service points, this number would be represented on the terminal by the banks logo or name.
• The BC agent would also have a chart displayed of various banks IIN.
• Therefore, this input need not be remembered by the customer. It is, however, recommended that the customer be aware of their bank IIN to ensure a successful AEPS transaction.