Today, you will hardly find someone in India who wouldn’t have heard about Aadhaar cards. It has become an inevitable part of our daily life. From getting a license to filling up exam forms, there is nothing that has stayed untouched from the gambit of UIDAI’s Aadhaar facility.
Though it has been reiterated time and again that Aadhaar is not mandatory for various services, its efficiency cannot be questioned.
One such scenario where Aadhaar has proven to be a boon is the Aadhaar Enabled Payments System(AePS). By linking Aadhaar numbers to bank accounts, NPCI has taken a leap forward in bringing the unbanked rural areas under the ambit of easy-to-use banking services.
The following article takes you through a detailed description of what AePS is and how can it be used!
What is Aadhaar Enabled Payments System?
Aadhaar Enabled Payments System– This is an initiative launched by the National Payments Corporation Of India(NPCI) which allows financial transactions as well as account information access with the help of a user’s aadhaar number. The transactions are done by Business Correspondents of different banks or third-party agents using Micro ATMs.
Services that it facilitates:
# Financial transactions
# Demographic authentication
# Go to a business correspondent for making a transaction
# Enter your aadhaar number
# Inform the transaction type
# Feed in the Bank name
# Amount and biometric, fingerprint, or iris in the micro ATM
Once the transaction is done, a transaction receipt is given which can be used for future enquiries…
Following are some examples of the transactions that can be processed:
# Balance enquiry
# Cash withdrawal
# Cash deposit
# Mobile update(in UIDAI Database)
# Mini statement
# Aadhaar to aadhaar fund transfer
The 12-digit Aadhaar number is exclusively given to Indian citizens by the UIDAI or Unique Identification Authority of India. Since the inception of Aadhaar in India, everyone has been asked to provide their Aadhaar biometric data. Each individual’s specific biometric data is included in the biometrics.
Because the Aadhaar number is unique and used for authentication, the acquired data cannot be duplicated. Aadhaar has taken the role of the traditional physical document submission technique because it serves as proof of transactions and signatures.
Aadhaar enrollment is a voluntary process that requires the individual’s demographic or biometric data for being enrolled. Enrolment in the Aadhaar system must be done only once and is permanent.
Additionally, you can use this special card for other financial transactions that are necessary for daily life in addition to receiving various perks, which is something that makes it stand out from other cards.
AePS Micro ATM:
AePS Micro ATM or Aadhaar Micro ATM allows users to do a variety of standard banking operations, including making multiple payments, transferring money between banks or inside banks, withdrawing cash, putting money in a bank account, and checking your account balance, among other operations.
Financial transactions or simple fund transfers can be completed with the use of AePS by validating the Aadhaar number, a fingerprint, and an iris scan. However, only those people whose bank accounts already have a link to their Aadhaar cards can use this payment mechanism of Aadhaar Micro ATM.
There is no need for a bank passbook while doing its transaction. The only requirement needed for processing the transaction is the fingerprints of the user.
The AePS Aadhaar ATM platform is straightforward, secure, and convenient for most of your financial transactions. Customers are allowed to use AePS to make payments by presenting their Aadhaar authentication at the point of sale, PoS, or AePS micro ATM.
The National Payments Corporation of India (NPCI) has launched yet another programme to promote cashless transactions in India. By using a mini ATM, you can conduct all transactions through a Business Correspondent, or BC, or any bank agent.
-> Fund transfer can also be done just by adding the beneficiary’s aadhaar number as well as yours.
-> Customers can also open new bank accounts by doing KYC which is beneficial for both customers and the bank.
AePS transactions are 100 % secured and easy & use the best finger detection technology. They are always seamless. AePS is the new age banking service that enables banks to route the aadhaar-initiated interbank transactions through a central switching and clearing agency.
AePS Micro ATMs are available even in remote parts of the country to make sure that the underbanked society is included in mainstream banking.
Since Aadhaar Enabled Payments System doesn’t require any password or pin but the user’s Aadhaar details and fingerprints-no duplicacy or theft is possible. If the fingerprints you provided matched with the ones stored in the UIDAI database, then the transaction is successful.
You can use any bank’s Banking Correspondent for a number of transactions, with the exception of fund transfers, for which you must visit a specific bank’s Banking Correspondent. AEPS was established to expedite the nation’s vision of financial inclusion.
How To Use An AePS Micro Atm:
# Visit a local banking correspondent.
# Your 12-digit Aadhaar number should be entered into the PoS device.
# Choose the transaction type, such as eKYC, mini statement, fund transfer, or cash deposit or withdrawal.
# Choose the bank’s name.
# Put in the transaction’s amount.
# Apply your biometric to the transaction’s authentication (fingerprint or iris scan).
The transaction is finished in a matter of seconds and you will receive a receipt from the banking correspondent.
Benefits for End Customers:
# FidyPay AePS Micro ATM solution allows Aadhaar card money withdrawal through aadhaar authentication.
# Any bank account holder can simply use their Aadhaar number and biometrics to verify their identity without the need to remember their account number.
# Offers an Interoperable system between different banks.
# Allows multiple bank accounts to sync together on a single platform.
How well is AePS received by the Masses?
According to information from the National Payments Corporation of India (NPCI), the number of transactions made using AePS increased from Rs 11,286.61 crore in January 2020 to Rs 21,978.51 crore in January 2021. By January of 2021, the total allowed transactions had increased by 47% to 31.51 crores over the previous year.
According to reports, AePS has gained a lot of traction in rural regions and received a huge boost during the lockdown caused by the Covid-19 pandemic. Aadhaar authentication allows for simple AePS transactions at PoS (AePS MicroATM) through the Business Correspondent of any bank. Only the bank name, Aadhaar number, and fingerprint is taken during enrollment are needed from the customer, negating the need for a smartphone or a trip to a bank branch.
Which AePS Solutions Company To Choose?
Getting the right AePS Solutions Company for a business is a task that needs much research. Since the development of the Fintech ecosystem in India, a large number of companies have started providing banking services. But when it comes to choose the one that best fits your requirement, both cost effectivity, as well as efficiency, must be kept in mind. To name one, FidyPay has established itself as a leading name in the industry.
With over 500+ B2B Clients served and having 50k+ indirect merchants and 65Mn indirect customers, FidyPay defines consistency and confidence when it comes to the fintech ecosystem.