November 12, 2019

AADHAAR Enabled Payment System – AEPS

AADHAAR Enabled Payment System (AEPS)

AADHAAR Enabled Payment System provides basic financial services (cash deposit, balance enquiry, cash withdrawal and remittance) at low cost access devices (called MicroATMs) maintained at Business correspondents in an inter-operable way.

The 5 AADHAAR enabled basic types of banking transactions are:

  • Cash Withdrawal
  • Cash Deposit
  • AADHAAR to AADHAAR Funds Transfer
  • Balance Enquiry
  • Gateway Authentication Service

The objective of AADHAAR Enabled Payment System (AEPS) is to empower a bank customer to use AADHAAR to access his/her AADHAAR – enabled bank account and perform basic banking transactions that are intra-bank or interbank in nature through a business correspondent. It serves another important goal of RBI in electrification of retail payments. It would enable banks to route the AADHAAR -initiated interbank transactions through a central switching and clearing agency. It would facilitate disbursements of government entitlements like NREGA, social security pension, handicapped old age pension, etc, of any central or state government bodies, using AADHAAR and authentication thereof as supported by UIDAI. Another important goal AADHAAR Enabled Payment System (AEPS) serves is to facilitate inter-operability across banks in a safe and secured manner. AADHAAR Enabled Payment System (AEPS) allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the AADHAAR authentication.

The four AADHAAR enabled basic types of banking transactions are as follows:-

  • Balance Enquiry
  • Cash Withdrawal
  • Cash Deposit

AADHAAR to AADHAAR Funds Transfer

Inputs required for a bank or a Banking Correspondent (BC) to do a transaction under this scenario are:-

  • IIN (Identifying the Bank to which the customer is associated)
  • AADHAAR Number
  • Fingerprint captured during their enrollment.

This powers the banking agent to operate on the field, doing transactions for their customer in an effective manner. Another system AADHAAR Payment Bridge Solution (APBS) is be used to

  • EBT Credit disbursements based on UID number.
  • To sub-serve the goal of Government of India (GOI) and Reserve Bank of India (RBI) in furthering Financial Inclusion by way of processing government disbursement using AADHAAR number.
  • To support various Schemes like NREGA, Social Security Pension, Handicapped Old Age Pension etc. of any Central or State Government bodies, to send financial details to the beneficiary using AADHAAR number. Nelito has been in the forefront in providing banks with ABPS and AEPS systems. It has already gone live with 12 banks for these projects and preparing more banks for the platform.

Source: Amol S. Khanvilkar

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