AEPS (Aadhaar Enabled Payment System) How to transfer money using Aadhar Number

AEPS

AEPS (Aadhar enabled payment system) is a new payment service offered by the National payments corporation of India to banks, financial institutions using Aadhar and online UIDAI (unique identification authority of India) authentication through their respective business correspondent service centres.

AEPS is a bank led model which allows online interoperable financial transaction at POS (point of sale/micro ATM) through the business correspondent(BC)/bank Mitra of any bank using the Aadhar authentication.

BACKGROUND

In order to further speed track financial inclusion in the country, two working groups were constituted by RBI on Micro ATM standards and central infrastructure and connectivity for Aadhar based financial inclusion transactions with members representing RBI, UIDAI, NPCI, institute for development and research in banking technology and some special invitees representing banks and research institutions.

The working group on Micro ATM standards & central infrastructure & connectivity has submitted its report to RBI. As a part of the working group it was proposed to conduct a lab level Proof of concept(POC). Integrating and authentication and encryption standards of UIDAI, to test the efficiency of Micro ATM standards and transactions using Aadhar before they are put to actual use. The POC was successfully demonstrated at various venues.

OBJECTIVE

Ø  To sub-serve the goal of RBI in electronification of retail payments.

Ø  To sub-serve the goal of government of India (GOI) and Reserve Bank India(RBI) in furthering financial Inclusion.

Ø  To empower a bank customer to use Aadhar as his/her identity to access his/her respective Aadhar enabled bank account and perform basic banking transactions like cash deposit, cash withdraw, intrabank or interbank fund transfer, balance enquiry and obtain a mini statement through a business correspondent.

Ø  To enable banks to route the Aadhar initiated interbank transactions through a central switching clearing agency.

Ø  To facilitate disbursements of government entitlements like NREGA, social security pension, handicapped old age pension etc. of any central or statement government bodies using Aadhar and identification thereof as supported by UIDAI.

Ø  To facilitate inter-operability across banks in a safe and secured manner.

Ø  To build the foundation for a full range of Aadhar enabled banking services.

HOW TO GET IT

Ø  Provide KYC (Know your customer) information to open a new account.

Ø  Aadhar number should be linked with bank account.

Ø  You Can Apply at Any Nearest Bank.

Ø  There are so many third party vendors available.

Ø   You can also Apply at thepaymart.com  for AEPS services.

HOW IS AEPS DIFFERENT FROM OTHER ONLINE TRANSACTION

Ø  No pin or OTP required.

Ø  No duplication or theft.

Ø  Safe and secure.

Ø  Only Aadhar no. required.

SERVICES OFFERED

Ø  Balance enquiry.

Ø  Cash withdrawal.

Ø  Cash deposit.

Ø  Aadhar or Aadhar funds transfer.

Ø  Payment transactions (C2B, C2G transaction)

Ø  Mini statement.

FUNDS TRANSFER LIMIT

Ø  Banks define limit, no limit for RBI

Ø  The funds transfer limits are based on available information and may vary based on banks.

TRANSACTION COST

Ø  Nil to customer.

Ø  Merchant or BC may get charged or paid based on bank’s discretion.

WHAT IS REQUIRD FOR TRANSACTION

Ø  Micro ATM.

Ø  Remember Aadhar.

Ø  Give bank name.

Ø  Present self (Aadhar holder)

Ø  Assisted mode.

BENEFITS

Ø  The account holder can do the financial and non-financial transaction through the banking correspondent.

Ø  A banking correspondent of any bank can do the   specified transaction of any bank.

Ø  No need to have the signature or debit card.

Ø  It is secured because no one else can forge your fingerprint.

Ø  Banking correspondent can reach to the distant rural place with the micro POS.

 COCLUSION

AEPS gives a lot of convenience to the rural people. It brings the bank to their doorstep and saves much time and transport expense. It would be just like a visit to the ATM at every doorstep. This why government calls the POS as micro ATM. 

      Thepaymart Infotech Solution one of AEPS services provider in India. You may Contact at info@thepaymart.com for more details.