Aadhaar Enabled System for Merchant Payment
All You Have to know About Aadhaar Enabled Payment System. From time to time, the Government of India introduces various facilities that aims at making financial transactions simpler and easier.
In order to bring in financial inclusion in the country, the Reserve Bank of India constituted two Working Groups. While one Working Group focused on Micro ATM standards, the other worked on Central Infrastructure & Connectivity for Aadhaar based financial inclusion. Both the groups submitted a report to the Reserve Bank of India and Aadhaar Enabled Payment System was soon introduced.
What is Aadhaar Enabled Payment System?
Aadhaar Enabled Payment System is a bank-led model that facilitates online financial inclusion transactions where a Business correspondent of any bank can perform a transaction at at PoS (MicroATM) using the Aadhaar authentication.
There are six important types of transactions that can be carried using the Aadhaar Enabled Payment System are:
- Withdraw cash
- Cash deposit
- Balance enquiry
- Best Finger Detection
- Get a mini statement
- Aadhaar to Aadhaar Fund Transfer
A user would need the IIN ((Identifying the Bank to which the customer is associated), fingerprint given during the enrolment, and the Aadhaar number.
Features and Benefits of Aadhaar Enabled Payment System
The features and benefits of Aadhaar Enabled Payment System are as listed below:
Transactions are linked by Aadhaar card: The Aadhaar card holders can carry out transactions using their Aadhaar linked bank accounts.
Biometric authentication: Transactions are authenticated by providing the Aadhaar number and biometric details (fingerprint, face, or iris scan) at Points of Sale (PoS) or micro-ATMs operated by Business Correspondents of Paytm Payments Bank, ensuring secure and dependable transactions.
User-friendly: AEPS is designed to be easily understandable and navigable, facilitating individuals in conducting diverse financial transactions.
Empowerment of the underprivileged: AEPS plays a pivotal role in empowering marginalized and underprivileged segments of society by granting them access to banking services and facilitating digital financial transactions.
Interoperability: The AEPS system fosters interconnectivity among banks in a secure manner, offering a convenient avenue for transferring and receiving funds, thus obviating the necessity for physical visits to bank branches.
Basic banking services: The AEPS enables Aadhaar card holders to execute various fundamental banking transactions such as cash deposits, withdrawals, balance inquiries, mini-statements, and Aadhaar-to-Aadhaar fund transfers. These transactions can be performed through a banking correspondent.
Objectives of Aadhaar Enabled Payment System
The objectives of Aadhaar Enabled Payment System are as listed below:
- To help and empower users to use their Aadhaar number and their Aadhaar enabled bank account to perform financial transactions like deposit cash, withdraw cash, print a mini statement, or check the balance.
- To build the foundation and promote Aadhaar enabled Banking services.
- To make retail payments electronic.
- To enable all Aadhaar Enabled payments through a trustable central switching and clearing agency.
- To help the Government of India (GoI) and Reserve Bank of India (RBI) to achieve the goal of financial inclusion.
How BHIM Aadhaar Pay Supports Merchant Payments
Merchants can now receive payments digitally from their customers using the BHIM Aadhaar Pay. Under BHIM Aadhaar Pay customers can make a payment over the counter through Aadhaar authentication. Any merchant associated with an acquiring bank on the BBHIM Aadhaar Pay network can accept payment can accept payment from a customer of any bank.
The merchant can do so by authenticating the customer's biometrics (which is for now only fingerprints) and receive payments from the customer's Aadhaar enabled bank account instantly. The merchant must have an Android mobile with the BHIM Aadhaar app to perform this activity.
Aadhaar Resources
- Unique Identification Authority of India
- Aadhar Card Download
- Aadhar Card Status Update
- Aadhar Card Update
- Documents Required for Aadhar
- Link Aadhaar with Mobile
- Aadhar Password
- Register Mobile Number with Aadhaar
- Aadhar Card Correction Form
- Aadhar Enrolment Centers
- Aadhar Customer Care Numbers
- Check Aadhar Status
- Aadhar Verification
- Lost Aadhar Card
- Aadhar Card Online Registration
Disclaimer
FAQs on Aadhaar Enabled System for Merchant Payment
- How does AEPS work?
AEPS works by linking an individual's Aadhaar number to their bank account. Users can then conduct transactions by authenticating themselves through biometric identifiers like fingerprints or iris scans at AEPS-enabled points of service.
- Are AEPS transactions safe and secure?
Yes, AEPS transactions are designed to be safe and secure. Biometric authentication adds an extra layer of security, making it a reliable payment system.
- Which transactions can be performed using AEPS?
All the transactions requiring the Aadhaar card details can be performed using AEPS.
- Will I be charged for carrying out AEPS transactions?
No, you will not be charged for carrying out AEPS transactions.
- How will I find out which outlets nearby are AEPS enabled?
You can contact your bank to check for AEPS enabled outlets nearby, and you can also check their website or use online directories provided by payment service providers like NPCI.
- Is it possible to use AEPS for government subsidy transfers?
Yes, AEPS is commonly used for government subsidy transfers like Direct Benefit Transfers (DBT), pension payments, and other welfare schemes, providing a convenient and transparent method for beneficiaries to access their funds.
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