AEPS Banking

AEPS, which stands for Aadhaar Enabled Payment System, is a financial service offered by the National Payments Corporation of India (NPCI). It allows people to carry out basic banking transactions using their Aadhaar number and fingerprint authentication. Here are some key aspects of AEPS services:

Financial Inclusion:

AEPS aims to promote financial inclusion by providing basic banking services to individuals who do not have access to traditional banking facilities. This includes services like cash withdrawals, balance inquiries, and fund transfers.

Aadhaar Authentication:

To use AEPS services, individuals need to link their Aadhaar number to their bank account. Aadhaar authentication is done through fingerprint or iris scanning, which ensures secure and reliable transactions.

Transaction Types:

• Cash Withdrawals: AEPS allows account holders to withdraw cash from their bank accounts through Business Correspondents (BCs) or Micro ATMs using Aadhaar authentication.
• Balance Inquiry: Account holders can check their account balance using AEPS services.
• Fund Transfers: AEPS enables interbank fund transfers, allowing individuals to send money from their bank account to another bank account using Aadhaar authentication.

1. Convenience: AEPS services provide a convenient way for people, especially in rural and remote areas, to access banking services without having to visit a bank branch. This helps in saving time and effort for account holders.
2. Security: Aadhaar authentication adds an extra layer of security to transactions, reducing the risks associated with unauthorized access and fraud.
3. Government Benefits: AEPS is often used to disburse government subsidies, welfare payments, and other benefits directly into the bank accounts of beneficiaries, ensuring transparent and efficient delivery of services.
4. Service Providers: AEPS services are typically offered by banks and financial institutions through their network of Business Correspondents or Micro ATMs. These service providers play a crucial role in reaching out to underserved areas.

It’s important to note that AEPS services are primarily available in India and are regulated by the Reserve Bank of India (RBI) to ensure the safety and reliability of transactions.