The Aadhaar Enabled Payment System, or AEPS for short, is a program that allows people to make digital payments for goods and services with their Aadhaar numbers. So far, it’s been up and running in India for almost a decade. It has been able to reduce the use of cash by 125 billion pieces and save time, money, and energy.
To use the Aadhaar Enabled Payment System to make a payment, you must have an electronic device (i.e. a mobile phone) connected to the internet. You then enter your 12-digit Aadhaar number and send some money to anyone with a UID (i.e. an Aadhaar number). The AEPS services can be availed through micro ATMS/POS. The process takes less than a minute, and the amount is transferred almost instantly over the Unique Identification Authority of India’s Unified Payment Interface (UPI).
The only requirement needed for AEPs is to have an Aadhaar card linked to your bank account. If you have submitted your Aadhaar card and bank account number, you are ready to use the services.
However, one must also note that the fingerprint provided at the time of issue of Aadhar Card should also match with other credentials to use AEPS services.
AEPS is an Aadhaar Enabled Payment System program in India. In this system, customers can make payments electronically using their Aadhaar number and biometric information.
Easy to use- Customers can make payments using their Aadhaar number, biometric information, and Aadhaar Enabled Payment Service authentication.
Secure- to use the AEPs; the customer must provide a one-time password (OTP) sent on their mobile phone linked to the bank account. This ensures that no unauthorized person has access to the account.
Instant transactions- By using this system, you can make cashless payments for goods and services digitally with your mobile phone instantly. You can pay through your Mobile phone using AEPs. A person does need a bank account or credit/debit card for this service.
It is hassle-free for all users- if you do not have a permanent account number, your biometric data can be used for verification. This also protects customers from being defrauded. Moreover, AEPS is one of the most progressive and rational moves for strengthening financial inclusion and facilitating finance management.
Proper monitoring of expenses is not just about making payments but also allows customers to keep tabs on their costs.
1. Cash deposits and cash withdrawals- The Aadhaar Enabled Payment System allows customers to deposit or withdraw money through an Aadhaar number. This is useful for a customer who does not have a Permanent Account Number. The customer has access to all the services offered by the bank and can even receive interest on their deposits.
2. To enquire about balance- The account holder can use the services to check their balance. This is useful for checking the status of savings before making any payments.
3. Financial transactions- Customers can avail of the services to carry out financial transactions with the help of AEPS. This is useful for those who have bank accounts but do not want to keep the money. If a customer has a linked Aadhaar card, they can easily send money or perform a financial transaction from anywhere at any time.
4. Transfer of funds (Aadhaar to Aadhaar)– According to the Aadhaar Act, the individual can request to transfer money from one account to another linked Aadhaar card. This is useful when you do not want to keep your savings with the bank. You can deposit or withdraw it at any branch of the bank.