What is AEPS And what are the Benefits of AEPS?

The National Payments Corporation of India (NPCI) has developed the AEPS payment system, which ensures complete security for AEPS transactions. Moreover, AEPS is very user-friendly and convenient.

AEPS is an innovative and secure mode of transaction that allows customers to withdraw money from their bank accounts using only their Aadhaar card and biometric authentication, without the need for any other documents or cards.

To use AEPS, you need to link your Aadhaar card with your bank account and provide your Aadhaar number and biometric authentication. There is no need for a physical Aadhaar card.

You don’t need an Android phone for AEPS. You can use any phone or micro ATM device that supports AEPS. All you need is your Aadhaar number and biometric authentication to use AEPS.

AEPS technology eliminates the need for a passbook, chequebook, or debit card; it is a fully electronic system that uses Aadhaar authentication.

Ensured Pay agents enable you to perform cash withdrawals or deposits at your convenience. You do not have to visit the bank for these banking services.

AEPS (Aadhaar Enabled Payment System) is a revolutionary payment system that leverages the power of biometric authentication. It surpasses any previous payment system in terms of security and simplicity, as it eliminates the need for cards, PINs, passwords, or mobile phones.

Forget cards, PINs, and passwords. AEPS technology lets you access your account with just your Aadhaar number and fingerprint. Scan and go for any transaction with your Aadhaar-linked bank.

With AEPS service, you don’t have to worry about signing anything, as your fingerprint verification acts as your digital signature. This makes the service more secure and convenient for you.

Cash Withdrawal: With AEPS, you can withdraw or deposit cash in a matter of minutes without any hassle. You don’t have to go to the bank or carry any documents with you. Just use your Aadhaar number and fingerprint to complete the transaction.

Account Balance: AEPS makes it easy for you to check your bank balance or get a mini statement anytime, anywhere. You don’t need a card, a PIN, or a mobile phone. Just scan your fingerprint and get the information you need.

Cash Deposit: AEPS provides a convenient and secure way to deposit cash in your bank account without visiting the bank. This is a great option for people who have busy schedules and can’t go to the bank regularly. You can deposit cash at any AEPS agent using your Aadhaar number and fingerprint.

Money Transfer: AEPS also enables you to transfer money to anyone using your Aadhaar number. You don’t need to know their bank details or account number. Just enter their Aadhaar number and the amount you want to send, and verify your fingerprint. The money will be transferred instantly.

Aadhaar Card: To use AEPS transactions, you need to have a valid Aadhaar number that is issued by the government. This number will help AEPS to identify you and find your bank accounts that are registered with your Aadhaar.

Bank Name: You also need to know the name of the bank where you have opened your savings account for AEPS transactions. This will help AEPS to access your account and perform the transaction.

Fingerprint: You need to verify your fingerprint through a biometric device to use AEPS transactions. This is a mandatory requirement for security reasons. Your fingerprint will act as your digital signature and authenticate the transaction.

1: When conducting transactions, banks take a lot of precautions to ensure the security and privacy of their customers. They verify the identity of the account holder using various methods before allowing any transaction to take place.

2: For example, for check transactions, signatures are verified to make sure they match the ones on record; for debit card transactions, PIN numbers are verified to confirm that the cardholder is authorized to use the card; and for AEPS system transactions, fingerprints are scanned to authenticate the biometric data of the customer.

3: The AEPS system is a type of payment system that uses Aadhaar card data to enable transactions. The system matches your fingerprint with the UIDAI (Unique Identification Authority of India) and the bank you specify. Only if the verification is successful can you complete the transaction.

4: The NPCI (National Payments Corporation of India) is an organisation that facilitates digital payments and settlement in India. It handles all the settlements between you, the bank, and UIDAI. It securely checks the database to ensure that the transaction is valid and authorised.

AEPS is a convenient and secure way of conducting banking transactions using Aadhaar card data. It is the simplest of all the methods available in the banking sector. You do not need to carry any card or remember any PIN or password to use AEPS. You just need to follow these easy steps:

1- Visit the nearest Ensured Pay banking correspondent in your area. You can find them at various locations such as shops, petrol pumps, post offices, etc. You can transact through AEPS across all banks in India, regardless of which bank you have your savings account with. You just need to have an Aadhaar-linked bank account.

2- Give your Aadhaar number and correct bank name to the Ensured Pay correspondent. The correspondent will enter these details in the AEPS portal or app. This will help the system to identify your bank account and fetch your details.

3- Choose the type of transaction you want to do from the available options: cash deposit, withdrawal, mini statement, fund transfer, balance inquiry, or eKYC. The correspondent will select the option on the portal or app and enter the amount if applicable.

4- Enter the amount you want to withdraw if you have chosen the withdrawal option. The correspondent will enter the amount on the portal or app and confirm it with you.

5- Verify transactions using a biometric device (fingerprint or iris scan). The correspondent will ask you to place your finger or eye on the device and scan your biometric data. This will authenticate your identity and authorize the transaction.

6- Your transaction is completed successfully. The portal or app will display a confirmation message and generate a transaction ID. It takes only a few seconds to transact through AEPS.

7- Make sure to get a receipt for your transaction from the Ensured Pay banking agent. The receipt will have the transaction ID, date, time, amount, and other details. You should keep the receipt for future reference and proof of transaction.

AEPS is a convenient and secure way of accessing banking facilities from your home or a nearby location.
You do not need to visit a bank branch or an ATM to avail yourself of banking services. You can use your Aadhaar card and biometric data to conduct transactions through AEPS.
This facility is much more attractive than any commission that you may get from other sources.
You can save time, money, and hassle by using AEPS. You can also enjoy the benefits of financial inclusion and digital empowerment by using AEPS.
If you are an AEPS agent, you can provide banking services to other customers using your device and internet connection.
You can help customers deposit or withdraw cash, check their balance, get a mini statement, transfer funds, or do eKYC using AEPS. For every transaction that you do with a customer,
You get an AEPS commission from the bank or the service provider.
The commission amount depends on the type and volume of transactions that you do. You can earn a good income by becoming an AEPS agent and serving your community.

1: As a customer, if you want to use the AEPS service to withdraw cash from your bank account or deposit cash into your bank account,
You will have to pay a certain amount of money for each transaction. This fee is prescribed by the NPCI (National Payments Corporation of India), which is the organisation that facilitates digital payments and settlement in India.
The NPCI sets the fee based on various factors, such as the type and volume of transactions, the cost of infrastructure, and market conditions. In addition to the NPCI fee,
The agent who provides you with the AEPS service may also charge you a small amount for their service.
This is because the agent has to bear some expenses, such as the device, the internet connection, and the electricity.
2: The AEPS service is a convenient and secure way of accessing banking services using your Aadhaar card and biometric data. You do not need to visit a bank branch or an ATM to avail yourself of banking services.
You can use the AEPS service at any location where there is an agent with a device and an internet connection.
The AEPS service is especially beneficial for the working class, farmers, villagers, and other people who lack time or access to formal banking channels.
The AEPS service enables them to conduct transactions such as cash deposit, withdrawal, mini statement, fund transfer, balance inquiry, or eKYC using their Aadhaar card and biometric data.
Therefore, the fee for using the AEPS service is very low compared to other banking services that may require cards, PINs, passwords, or paper documents.
3: If we summarise the above points in a few words, then we can say that AEPS charges are definitely there, but they are negligible.
They are negligible because they are very low compared to other banking charges, and they are worth paying for the convenience and security that the AEPS service offers.
You can save time, money, and hassle by using the AEPS service instead of other banking methods.

1- The AEPS service cannot be used without a biometric device.
Because there is biometric authentication in the AEPS process, if any merchant wants to take payment from customers, then it is a necessary condition to have a finger print scanner.

2- This system is limited to AEPS payment agents and customers only.
If a person wants to make a payment to another person through the AEPS system, then he will not be able to make the payment.

3- The entire process of the AEPS system is operated through an internet connection.
In areas where internet connectivity is weak, it will be very difficult to use the AEPS system.

4- Almost all banks have fixed limits for cash withdrawals through the Aadhaar-enabled payment system. And all those banks do not allow to withdraw more than the fixed limit.

Risk – As seen, no system is completely secure in terms of doing transactions. But compared to other existing systems, the risk potential of AEPS is very low.

Problem – If there is a problem with the network, finger, thumb, or device quality, you may face difficulties in authenticating your identity through biometric or IRIS scanners.

Advice – Customers are advised to be cautious to avoid any financial mishaps. Why, as a customer, are you transacting through an agent and not with a bank?