Aadhaar Enabled Payment System is a payment service through which a bank customer can use his/her Aadhaar to access his/her respective Aadhaar-enabled bank account and perform basic banking transactions like balance enquiry, cash deposit, cash withdrawal, and remittances through a Business Correspondent.
According to the latest notification, AePS issuer cash withdrawals and cash deposits will be charged at Rs 20 plus GST on each transaction that exceeds the free transaction cap, while mini statement transactions will be charged at Rs 5 plus GST per transaction.
Free Transaction cap: Cash withdrawal, cash deposit, and mini statements of up to one transaction are free for non-IPPB customers per month.
A customer can make an AePS transaction with the bank name, Aadhaar number and registered fingerprint while enrolling.
The NPCI describes AePS as easy to use, safe and secure payment platform to avail of benefits by using Aadhaar number and biometrics. The AePS works on the demographic and biometric/iris information of an individual, and thus eliminates fraud threats.
“The Aadhaar Enabled Payment System (AePS) is a bank-led model developed by NPCI, which allows online transactions at Micro ATM/Kiosk/mobile devices through the authorised Business Correspondent (BC) of any bank using Aadhaar authentication. This solution has been designed by NPCI to handle various kinds of service requests effectively by enabling an authentication gateway for all Aadhaar-linked account holders. Any resident of India having an Aadhaar number linked to a bank account – referred to as an Aadhaar Enabled Bank Account (AEBA) – can utilise the AePS service,” NPCI said in a statement.