The speeding of the banking system and financial inclusion is the goal of any country. The Aadhaar Enabled Payment System has empowered the citizens of the country to access the Aadhar enabled bank account with help of Aadhar Unique Identification Number. It was launched by the Reserve Bank of India. The method is provided by the National Payments Corporation of India that enables the members with Aadhaar linked bank accounts to avail basic banking services. The Aadhaar enabled payment system or AEPS allows transactions at PoS that are at micro ATMs. The AEPS works cordially to empower all the sections of the society by making banking services available through Aadhaar.
The AEPS allows users to make payments using their Aadhaar number and Aadhaar verification at point of sale or micro ATM. The AEPS is an initiative taken by the National Payment Corporation of India to promote cashless transactions. AEPS makes financial transactions seamless and effortless.
The Objectives of Aadhar Enabled Payment System
If one has an Aadhaar Account that is linked to their bank account one can perform the following banking transactions:
- Cash deposit
- Cash withdrawal
- Interbank and intra bank money transactions
- Balance inquiry
- Obtain mini statement
- Aadhar to Aadhaar fund transfer
How to operate AEPS?
Availing the banking transactions using Aadhar identification is as easy as ABC. All one has to do is follow the following steps.
- First, go to a micro ATM or an AEPS service providing company near you
- Give them your 12 digit Aadhaar number and the bank name that is linked to the Aadhaar number
- Then choose the transaction that you want to do. Whether it is fund transfer or cash deposit or balance inquiry
- Enter the amount of transaction
- Now verification is done. It is done either by scanning your fingerprint or retina
- Your transaction will be completed within a matter of seconds
- The agent will receive a transaction receipt from the bank and the same will be confirmed through an SMS to the customer
The Working of Aadhaar Enabled Payment System
The simple working of AEPS has made it so reliable and most sought after the method. The micro ATM or the AEPS service provider company has a small electronic device like the normal debit or credit card machines using which the transaction is done.
Benefits of Aadhar Enabled Payment System
- The AEPS method enables card fewer withdrawals of cash just using Aadhaar UIN via Aadhaar Enabled Payment Software
- It is an easy and secure way for all basic banking transactions
- The AEPS method has enabled all people of the society to access banking transactions. Even elders and people from rural area can use this method as this is highly reliable and easy to operate
- The AEPS method has made everyone free from remembering the bank account number or carry it along all the time. For this method, if you just have your Aadhaar card than it’s enough
- It is also interoperable across any banks
- You can also link your Aadhaar identification number with up to five banks
- The AEPS also facilitates the payment of government schemes like NREGA, social security pension, handicapped old age pension, and much more of any central or state government bodies
- It also helps the Government of India and Reserve Bank of India to scale financial inclusion and make retail payments electronic