AEPS - Aadhaar Enabled Payment System

Aadhaar Enabled Payment System (AEPS) is a type of payment system that is based on the Unique Identification Number and allows Aadhaar card holders to seamlessly make financial transactions through Aadhaar-based authentication. The AEPS system aims to empower all sections of the society by making financial and banking services available to all through Aadhaar. AEPS is nothing but an Aadhaar-enabled payment system through which you can transfer funds, make payments, deposit cash, make withdrawals, make enquiry about bank balance, etc. AEPS allows customers to make payments using their Aadhaar number and by providing Aadhaar verification at point of Sale (PoS) or micro ATMs . This is a simple, secure and user-friendly platform for financial transactions. This is another initiative taken by the National Payments Corporation of India (NPCI) to encourage cashless transactions in India. Customers can carry out all transactions through a Business Correspondent (BC) or bank agent through a micro ATM. Except fund transfer, where you need to go to the specific bank BC, for other transactions you can use any bank BC.In order to use AEPS, your bank account must be linked to Aadhaar.


How to use AEPS

Step 1: Go to a micro ATM or banking correspondent

Step 2: Provide Aadhaar number and bank name

Step 3: Choose the type of transaction you want to make

Step 4: Provide verification through fingerprint/iris scan

Step 5: Collect your receipt

Services Offered by AEPS

  • Cash Deposit
  • Payment Transactions (C2B, C2G Transactions)
  • Balance Enquiry
  • Cash Withdrawal
  • Aadhaar to Aadhaar funds transfer

Features & Benefits of AEPS

  • Easy to use
  • Safe and secure payment method
  • Interoperable across various banks
  • Encourages financial inclusion and serves the underbanked sections of society
  • Through AEPS, all bank account holders will be able to access their bank accounts through Aadhaar authentication
  • With AEPS, the only information required to initiate a transaction is Aadhaar number and biometric information
  • AEPS facilitates disbursements of Government schemes like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies using Aadhaar authentication.

How Does AEPS Work

The AEPS machine works like a Point of Sale (POS) machine. Instead of a debit/credit card pin, the merchant will have to key in the customer’s Aadhaar number and authenticate the transaction using the customer’s biometric data.

You will require the following formation to carry out an AEPS transaction:

  • Bank’s Issuer Identification Number (IIN) or name
  • Aadhaar Number
  • Fingerprint


  1. What is AEPS?

    AEPS, expanded as Aadhaar Enabled Payment System, is defined as a type of payment method. The service is being offered by the National Payments Corporation of India (NPCI).

  2. What is Aadhaar?

    Aadhaar is and unique number that is assigned to residents of India by the Unique Identification Authority of India (UIDAI).

  3. Who can use AEPS?

    All Indian residents holding a valid Aadhaar card and a bank account can use this payments service.

  4. How can a user enable this service ?

    To start using AEPS, first link your bank account with your Aadhaar number. Then, contact your bank and let them know that you want to start using AEPS.

  5. Should the payee/beneficiary also have AEPS to receive funds?

    This is not necessary.

  6. Is it possible to link more than one bank account to your Aadhaar card?

    Yes. This can be done.

  7. Can those without Aadhaar cards use this service?


  8. What type of bank account do you need to have for AEPS?

    The bank account needs to be linked with your Aadhaar.

  9. What is a business correspondent?

    A business correspondent is nothing but an approved bank agent offering terminal or micro ATM services to banks.

  10. What is an IIN?

    This is a 6 digit number that helps in the identification process of your bank.

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