What Is AePS (Aadhaar Enabled Payment System)? Difference Between AEPS and UPI

Around 1.3 billion people in India have their own Aadhaar Card. Aadhaar is considered the official identity proof and is required in the process including account opening, admission, verification, etc. The AePS services (Aadhaar-enabled payment system) ease the banking process using fingerprints and Aadhaar numbers. With this system, people can deposit and withdraw money from micro ATMs just using their Aadhaar numbers and biometrics. It is a secured mode of payment.

What is AePS and its Full Form?

The AePS full form is an Aadhaar-enabled Payment System. It is a bank-led model that allows interoperable financial transactions using Aadhaar Authentication at MicroATM.

NPCI National Payment Corporation in India created AEPS to make banking and financial services available to everyone through Aadhaar. 

What does Aeps Service Means?

AePS service is a payment method that facilitates Aadhaar-based transactions. This system helps people to access banking services easily and safely, especially in rural and remote areas. They can withdraw money using their Aadhaar and their fingertips through Business Correspondent, Point of Sale and Micro ATM.

It allows services like

• Cash Deposit
• Balance Enquiry
• Mini Statement
• Authentication
• Cash Withdrawal
• Aadhaar to Aadhaar Fund Transfer
• eKYC

Purpose of Aadhaar Enabled Payment System

• Reduces the banking load: It allows customers to do basic transactions like Cash deposits, withdrawals, fund transfers, balance inquiries, and getting mini statements through business correspondents.
• Support financial Inclusion: It assists the Government of India and RBI (Reserve Bank of India) in bringing more people into the banking system.
• Disburse Government Benefits: make it easier to disburse government benefits like NREGA payments, handicapped, social security pensions and other benefits.
• Ensure Safe Sharing Between Banks: It allows banks to work together securely.
• Process Interbank Transactions: Allows banks to handle Aadhaar-based transactions through a central system.

In simple words, the the main purpose behind AePS is to widespread the digital mode of payment with security.

What are the benefits of Using the AePS?

Here is the list of benefits.

Easy to Use: You just need your Aadhaar verification to access banking services.

Safe and secure method: In Aadhaar based transaction people don’t have to share their bank account details, which makes it secure.

Promotes Financial Inclusion: Almost all the people of India have their Aadhaar card they can use AePS, which will increase financial inclusion. 

Simple Requirement: Like the other payment methods where the user needs to share their bank details, Aadhaar-based transactions are simple and require Aadhaar bank linking only.

Need minimal information: To use AePS service you only need an Aadhaar number and biometric.

Which banks support AEPS?

Here are the banks types that support Aadhaar enabled payment system service,

• Mainline Commercial Banks: Axis bank, Bank of Baroda, Bank of india, Canara bank, Bandian bank ltd, etc.
• Regional rural banks: Andhra Pradesh Gramin Vikash Bank, Assam Gramin Bank, bangiya Gramin Bank, Grameena Bank, Andhra Pragathi, etc.
• Co-operative banks: Ask Cooperative Central Bank Ltd Aska, Dharmapuri district Central Co-op bank Ltd, etc.
• Payment banks and small finance banks: AU Small Finance Bank, Fino Payments Bank, Airtel Payments Bank, Fincare small finance bank,etc.

What is the difference between AEPS and UPI?

AePS is an Aadhaar based payment system. It allows people to make transactions using biometric information at Micro ATMs. UPI or Unified Payment Interface allows users to transfer money instantly between banks through mobile. People can receive money, and pay bills by QR code scanning.

UPI is a unified payment interface that allows people to do transactions using Apps and QR scans.

FAQs

What Does AePS Mean?

AePS refers to an Aadhaar-enabled payment system, that allows individuals to do banking work.  

How Do I Activate The AePS Service?

To activate follow these steps

• Visit the bank branch
• Carry documents including Aadhaar and PAN Card
• Fill out the application form
• Undergo Biometric verification
• Sign the necessary agreements
• Set a PIN
• Test working by small transaction

What is the full form of AePS?

The AePS full form is the Aadhaar Enabled Payment System.

How do I register for AePS Service?

Follow these steps for AePS registration,

• Visit portal that offer registration services
• Fill the form
• Submit Aadhaar and PAN Card