Aadhaar-based payment systems (AePS) is a kind of digital payment system that uses the Aadhaar biometric authentication system to make payments. Aadhaar is a 12-digit unique identity number issued by the Unique Identification Authority of India (UIDAI). The AePS system uses the Aadhaar authentication infrastructure to facilitate monetary transactions. It is based on the Unified Payment Interface (UPI) platform.
AePS is a model led by the bank and developed by NPCI. It permits online transactions at Micro ATM/Kiosk/mobile devices through the authorised Business Correspondent (BC) of any bank using Aadhaar authentication.
What are the benefits of the Aadhaar-based Payment System (AePS)
NPCI has specifically designed an Aadhaar-based Payment System as an answer to several ways of service requests virtually by allowing an authentication gateway for all Aadhaar-linked account holders.
The people who can utilise the AePS service are the ones who have their Aadhaar number linked to a bank account (referred to as Aadhaar Enabled Bank Account, AEBA). Customers need to have a valid Aadhaar number to set up an AEBA with an authorised bank and relish the AePS service suite.
Basic banking transactions like balance enquiry, cash withdrawal, and remittances through a Business Correspondent can be done through AePS.
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List of services available under AePS
Balance Enquiry
Cash Withdrawal
Cash Deposit
Aadhaar to Aadhaar funds transfer
Payment Transactions (C2B, C2G Transactions)
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)
Aadhaar-Based Payment System Benefits
Customers can avail the benefits of doorstep banking and do basic banking transactions from the comfort of their homes without visiting any bank branch, carrying cards, or remembering PINs/passwords.
It also enables merchant transactions by letting the merchant receive the Aadhaar number/Virtual ID and biometrics of the customer for the purchase of goods and services.
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Do you need to carry an Aadhaar Card for transacting?
Carrying an Aadhaar card is not compulsory but linking your Aadhaar number with the Bank Account is of utmost importance for completing a transaction.
Can customers raise a complaint in case of a failed transaction?
Customers can raise a dispute/complaint with the bank they hold the account. It will further raise it to the concerned bank via NPCI’s Dispute Management System.
