Context:
It intends to enhance the onboarding process for service providers of Aadhaar-enabled payment systems under the Reserve Bank of India and formulate further guidelines for positing anti-fraud risk measures.
- Definition and Purpose:
- AePS (Aadhaar-enabled Payment System) is a feature of the National Payment Corporation of India (NPCI) that facilitates financial transactions using Aadhaar numbers.
- It allows customers to access Aadhaar-linked bank accounts for transactions like cash withdrawal, deposit, and interbank fund transfer.
- Role in Financial Inclusion:
- Integrates solutions into existing financial behavior to promote cash utilization.
- Supports the Reserve Bank of India’s goal of electronification for retail use.
- Leverages the registration of 1.33 billion Aadhaar cards (as of June 2022) to expand banking access via UIDAI.
- Key Features:
- Enables basic banking operations using Aadhaar identity and unique identity number (UID).
- Facilitates government financial disbursements.
- Provides secure, interoperable banking operations.
- Services Offered:
- Cash withdrawal.
- Cash deposit.
- Mini-statement.
- Balance enquiry.
- Fund transfer (Aadhaar-to-Aadhaar).
- Authentication.
- Bhim Aadhaar Pay.
- eKYC.
- Tokenization.
- Transaction Process:
- Customers visit a banking correspondent or Micro ATM enabled for AePS.
- Enter bank details and Aadhaar UID.
- Collect transaction receipts.
