Aadhaar Enabled Payment System

The Aadhaar Enabled Payment System (AEPS) is a revolutionary banking service introduced by the National Payments Corporation of India (NPCI) to promote financial inclusion across the country. AEPS allows users to perform basic banking transactions such as cash withdrawal, balance inquiry, mini statements, and fund transfers simply by using their Aadhaar number and biometric authentication, without the need for a physical debit or credit card.

AEPS operates through micro-ATMs and business correspondents (BCs) in villages, towns, and underserved areas, where access to traditional banking facilities is limited. It empowers individuals, especially those in rural and remote regions, by bringing banking services to their doorstep. The only requirements are a linked Aadhaar number and a bank account. This system eliminates the need for complex documentation and passwords, relying instead on fingerprint or iris scans for secure and seamless transactions.

One of the biggest advantages of AEPS is its simplicity. Users no longer need to memorize PINs or carry physical cards, reducing the risk of theft, loss, or fraud. Since biometric verification is unique and tamper-proof, AEPS ensures a high level of security in every transaction. It also promotes transparency and efficiency, allowing users to directly access their financial accounts in real-time.

AEPS supports several banking functions:

• Cash Withdrawal: Customers can withdraw money from their bank account using their Aadhaar.
• Balance Inquiry: Users can check the balance of their Aadhaar-linked bank account.
• Mini Statement: Customers can view the latest few transactions made in their account.
• Fund Transfer: AEPS allows intra-bank or inter-bank fund transfers using Aadhaar numbers.
• Aadhaar to Aadhaar Transactions: Transfers between two Aadhaar-linked accounts are also supported.