Aadhaar Enabled Payment System (AEPS) is a revolutionary payment solution that allows individuals to perform basic banking transactions using their Aadhaar number, biometric authentication, and a linked bank account. AEPS is a secure and accessible system designed to provide financial inclusion, especially in rural and remote areas, where traditional banking services may be limited.
With AEPS, users can perform various financial transactions such as:
-
Cash Withdrawals: Withdraw money from ATMs or micro ATMs using Aadhaar authentication.
-
Balance Enquiries: Check the balance of their linked bank account.
-
Mini-Statements: View the last few transactions made from the bank account.
-
Funds Transfer: Transfer money from one bank account to another using Aadhaar authentication.
Key Benefits of AEPS:
-
Security: AEPS uses biometric authentication (fingerprint or iris scan) to ensure secure and fraud-free transactions.
-
Accessibility: With AEPS, anyone with an Aadhaar number can access banking services, even without a debit or ATM card.
-
Convenience: AEPS simplifies banking services, making it easy for individuals to perform financial transactions in areas with limited banking infrastructure.
-
No Internet Required: AEPS can be used on basic mobile phones and does not require an internet connection, making it ideal for rural areas.
How AEPS Works:
-
User Identification: The user provides their Aadhaar number and authenticates the transaction using their biometric details (fingerprint or iris scan).
-
Transaction Processing: The transaction is processed by linking the Aadhaar number to the respective bank account.
-
Transaction Completion: Once the authentication is successful, the transaction is completed, and the user is notified.
AEPS is a part of the government’s initiative to bring digital financial services to every citizen, promoting financial inclusion and reducing the dependency on traditional banking channels. It is an essential tool for empowering individuals, especially in rural and remote areas, by giving them easy access to banking services.
