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What is AePS?
Aadhaar-enabled payment system (AePS) developed by National Payment Corporation of India (NPCI) aims to facilitate financial transactions through the Aadhaar number.
It enables an individual to use the Aadhaar number to access their Aadhaar-linked bank account and perform transactions including cash withdrawals, cash deposits, interbank fund transfers, etc. AePs was launched to enhance financial inclusion and subserve the RBI's goal of electronifying retail transactions.
The scheme enables Aadhar-linked interbank transactions -through centralized switching - using which an individual can go cashless in day-to-day retail payments. With 1.33 billion Aadhar cards generated till June 2022, AePS expands the scope of Aadhar by providing a banking mechanism through UIDAI.
Objectives of the scheme:
Services offered by AePS include cash withdrawal, cash deposit, mini statement, balance enquiry, Aadhaar to Aadhaar fund transfer, authentication, Bhim Aadhaar pay, ekyc, and tokenisation.
Using AePS:
Benefits of AePS:
It enables an individual to use the Aadhaar number to access their Aadhaar-linked bank account and perform transactions including cash withdrawals, cash deposits, interbank fund transfers, etc. AePs was launched to enhance financial inclusion and subserve the RBI's goal of electronifying retail transactions.
The scheme enables Aadhar-linked interbank transactions -through centralized switching - using which an individual can go cashless in day-to-day retail payments. With 1.33 billion Aadhar cards generated till June 2022, AePS expands the scope of Aadhar by providing a banking mechanism through UIDAI.
Objectives of the scheme:
- To build Aadhaar-initiated financial transactions through a central switching and clearing agency.
- To expand the purpose of Aadhaar unique identification number (UID) to perform basic banking operations.
- To enable government financial disbursement in schemes like Social Security pension, NREGA, and Handicapped Old Age Pension by State or Central Government using Aadhaar UID.
- To build a safe and interoperable banking mechanism using Aadhar UID.
Services offered by AePS include cash withdrawal, cash deposit, mini statement, balance enquiry, Aadhaar to Aadhaar fund transfer, authentication, Bhim Aadhaar pay, ekyc, and tokenisation.
Using AePS:
- Go to any banking correspondent or AePS-enabled “micro ATMs"
- Provide bank details and Aadhaar UID.
- Enter the details of transactions.
- Provide biometrics details (IRIS, fingerprint or face authentication)
- After the completion of the transaction, collect the receipt.
Benefits of AePS:
- Provides access to the banking system through micro ATMs in places where physical banks do not operate
- Provides real-time settlement of financial transactions
- Provides a safe and secure system for financial transactions
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