The AePS, also known as the Aadhaar Enabled Payment System, is a bank-led payment system that enables all Aadhaar card users to conduct financial transactions via micro ATMs or point of sale (POS) by utilising a special identification number (UID).
This initiative was taken by the National Payment Corporation of India (NPCI) to encourage cashless transactions in India. Their primary goal was to provide everyone in the community permission to use Aadhaar to access banking and financial services. Users can transfer money, make cash deposits and withdrawals, check their account balance, and access additional functions through the AePS.
In this blog, we’ll talk in-depth about AePS, including its benefits, objectives, how to use it, and more.
What is AePS?
AePS stands for Aadhaar Enabled Payment System. The Indian government’s National Payments Corporation created it. The Reserve Bank of India (RBI) and the Government of India want to make it easier for customers to use a business correspondent to conduct banking and financial services including fund transfers, cash withdrawals, mini statements, balance enquiries, and other tasks. To do this, they’ve made it possible for Aadhaar-originated interbank transactions through centralised switching and clearing businesses. To use the AePS service on a micro-ATM, customers just need to provide their biometric data and an Aadhaar number.
AePS is used by any State or Central government entities employing Aadhaar to streamline payments for government programmes like social security pension, handicapped old age pension, National Rural Employment Guarantee Act (NREGA), etc.
The specifics of AePS are as follows:
Features and Benefits of Aadhaar Enabled Payment System
Reasons to use AePS
To start a transaction using AePS, a bank holder simply needs to enter their Aadhaar number and biometric data. It also permits retailers to simplify transactions through Aadhaar-based biometric verification and to accept the Aadhaar number, the Virtual ID, and the consumer’s biometrics for the purchase of products and services.
Important justifications for choosing AePS include:
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