All that you need to know about Aadhar Enabled Payment System (AEPS)

What is Aadhar enabled payment system (AEPS)?

It is an Aadhaar based banking solution enabling you to operate Aadhaar linked bank accounts and carry out transactions using nothing but Aadhaar number and authentication through fingerprints.

It provides interoperability between customers and bank at point of sale (PoS) – for example a grocery shop- and ensures financial inclusion to the technologically marginalized sections of society (This includes not only rural but also urban population, the elderly, and generally less tech savvy population).

How does Aadhar Enabled Payment System (AEPS) work?
You need to provide your Aadhaar number at point of sale through a business correspondent (approved bank agent providing basic banking services) of any bank (microATM), which is verified through fingerprints stored in the Aadhaar database.  Below are the basic steps to conduct a banking transaction.
    Step 1- You enter your Aadhaar number in microATM
    Step 2- You choose the transaction type (withdrawal/deposit or fund transfer)
    Step 3- Enter the name of your bank
    Step 4- Scan you fingerprint/eye for biometric authentication

For deposits the you will be given a receipt of transaction by the correspondent. For fund transfer you will have to provide the beneficiaries Aadhaar no.
What do you need to start using Aadhar Enabled Payment System (AEPS)?
Below are the prerequisites to start using AEPS.

  • Bank account (the bank should be a part of AEPS network).
  • IIN (Identifying the Bank to which the customer is associated).  You can find the list of banks that are a part of the AEPS network and their IIN later in the post.
  • Aadhaar number which is seeded in the bank account.

The Aadhaar number and IIN can either be entered manually or by swiping RuPay ATM & microATM card (presently only issued by Bank of India, others bank are in the process of issuing these cards).

What services are provided/ transactions can be done using AEPS?

The four main Aadhaar enabled banking transactions are as follows:-

  • Balance Enquiry
  • Cash Withdrawal
  • Cash Deposit
  • Aadhaar to Aadhaar Funds Transfer

The following table details the steps required to conduct the transactions

Sr no

Transaction Type Inputs Required
1. Balance Enquiry Customer’s Details:
a. Aadhaar Number
b. Bank’s IIN
c. Fingerprint
2. Cash Withdrawal Customer’s Details:
a. Aadhaar Number
b. Bank’s IIN
c. Amount to be Withdrawn
d. Fingerprint
3. Cash Deposit Customer’s Details:
a. Aadhaar Number
b. Bank’s IIN
c. Amount to be Deposited
d. Fingerprint
4. Fund Transfer Remitter’s Details:
a. Aadhaar Number
b. Bank’s IIN
c. Amount to be Transferred
d. Fingerprint Data

Beneficiary’s Details:
a. Aadhaar Number
b. Bank’s IIN

Source: National Payments Corporation of India (NPCI)
Others transactions include
  • Mini statement
  • Mobile update ( in UIDAI database)
  • Opening a new bank account through e-KYC
 What are the benefits of AEPS?
  • It allows interoperability between Aadhaar enabled accounts of even different banks.
  • It is promoting financial inclusion.
  • At present it is providing only basic banking facilities but the ultimate objective is to provide full range of banking service through Aadhaar enabled transactions in a secured and safe manner.
Who can be a business correspondent? 
A business correspondent can be an individual, a shopkeeper, post office, NGO, cooperative societies etc. who have been authorized to be so.
Which banks are AEPS enabled and what is IIN?

IIN is a six digit number alloted to network banks by NPCI for AEPS. The customer has to enter bank IIN where he/she has an account. The current list of AEPS enabled banks with the respective IIN numbers are listed below.

S.No Bank name IIN code

Bank Of India 508505
2. Corporation Bank 508507
3. Syndicate Bank 508508
4. Union Bank of India 508500
5. The Federal Bank Limited 508523
6. Dhanlaxmi Bank LTD

7. Axis Bank 508533
8. ICICI Bank 508534
9. Allahabad Bank 508540
10. Indian Overseas Bank 508541
11. The Lakshmi Vilas Bank Ltd 508542
12. Central Bank of India 508546
13. Dena Bank 508547
14. State Bank of India 508548

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