Aadhaar Enabled Payment System

Aadhaar Enabled Payment System is Available st Suvidha Enterprises.



  • What is Aadhaar Enabled Payment System?

The Aadhaar Enabled Payment System (AEPS) is an installment benefit that enables clients to utilize their Aadhaar number and biometric information as ID to perform fundamental keeping money exercises with their individual Aadhaar empowered ledger.

  • How Aadhar Pay Works?

As far back as UPI or Unified Payment Interface has been propelled, various changes and upsets regarding the nation’s economy has been ensured. Aadhaar Payments or AEPS is an aftereffect of this and has been formally reported at this point. This component will likewise take off soon empowering people to utilize just their Aadhaar number and biometric data to get and send cash.
UPI is alluded to an installment framework wherein cash exchange can happen between two financial balances by utilizing cell phones. This should be possible both on the web and disconnected and takes out the need to type in card subtle elements, IFSC codes et cetera. Aadhaar installments are an aftereffect of this.
IFDC Banks has propelled an Aadhaar-connected cashless arrangement through which a client can utilize his/her telephone to empower advanced installments. This has been names as ‘Aadhaar Pay’ and was propelled in relationship with IDFC Bank, UIDAI and NPCI. This technique has been conveyed to 100 traders up until now and utilizations UPI and Aadhaar for installments. State Bank of India has additionally reported that a town in Maharashtra, Shirki town has been received by them. The traders in this town have all been given cell phones and unique finger impression scanners keeping in mind the end goal to enable them to move far from money.

  • Objectives of Aadhaar Enabled Payment System.

1. To promote the use of the Aadhaar Card as a form of identification to perform basic banking activities such as balance enquiry, cash deposits, cash withdrawal, and other remittances that are either interbank or intrabank in nature.
2. To increase the financial inclusion of individuals in the country.
3. To promote the digitization of retail transactions.
4. To route Aadhaar initiated interbank transactions through a clearing or switching agency.
5. To use the Aadhaar as identification for disbursement of government entitlements, such as, the National Rural Employment Guarantee (NREGA), Social Security Pension, Handicapped and Old Age Pension, etc.
6. To ensure safe and secure interoperability among banks across India.
7. To expand the scope of Aadhaar Enabled Payments.

  • Service Available Customers Using AEPS.

The scope of AEPS is slowly expanding. Presently, the following are the banking services a customer can access under the AEPS:
• Balance enquiry.
• Cash withdrawal.
• Cash deposits.
• Aadhaar to Aadhaar fund transfers.
There are two types of transactions that are undertaken by the AEPS, which are, Intrabank (on-us) and Interbank (off-us) transactions.
An intrabank transaction is one where an Aadhaar initiated transaction has effects on accounts within one bank and does not require an interbank settlement.
An interbank transaction is a transaction where an Aadhaar initiated transaction causes movement of funds from one bank to another, requiring an interbank settlement.

  • What is Aadhaar Payments?

UPI enables people to exchange cash to someone else utilizing the IMPS strategy for installment wherein financial balance subtle elements or IFSC code isn’t fundamental. Just the virtual personality of the individual ought to be referred to, for example, their versatile number or email address. Aadhaar is the supporting foundation for UPI and empowers AEPS. More or less, it implies that Aadhaar biometric information can be utilized to confirm installments from the person’s connected financial balance.

  • How Can Individuals Pay?

People should first secure an Aadhaar card and then link the same to their financial balance. The shipper to whom installment must be made will likewise need to help Aadhaar installment and have the significant framework for the same too. In the event that this office is accessible at all stores, at that point people will just need to give their Aadhaar number and afterward have their unique finger impression filtered. The connected bank should be chosen after which installment will happen. Henceforth, installment turns out to be extremely straightforward and bother free.
The nation is moving towards computerized installments and through the use of UPI and AEPS, digitization is conceivable significantly more quicker. Clients and shippers will just need cell phones, an Aadhaar card, and connection their financial balance to the same. Through these strategies, people from even the most remote corners of the nation can take an interest in digitization.

  • Aadhaar Enabled Interbank Transactions.

All Aadhaar initiated interbank transactions are routed through the National Payments Corporation of India (NPCI). There are four Aadhar enabled basic interbank transactions that can take place:


Under the AEPS a customer can make a cash withdrawal through a MicroATM of the Business Correspondent. The cash withdrawal initially flows through the Correspondent bank of the Business Correspondent (BC). If the transaction is intrabank, on Aadhaar authentication, the bank will debit the customer’s account and will send a positive response via the MicroATM. In case of interbank transactions the transaction will be forwarded to the Issuer Bank via the NPCI’s switch. On successful authentication of the Aadhaar the Issuer Bank will debit the Aadhaar enabled account of the customer and will send a positive response to the MicroATM through the NPCI switch.


A cash deposit transaction initiated by a Business Correspondent initially flows through the correspondent bank of the Business Correspondent. If the transaction is intra-bank, on successful authentication of the Aadhaar, the customer’s account will be credited and a positive response will be sent to the MicroATM. If the transaction is inter-bank, the transaction will be sent to the NPCI’s switch to be forwarded to the Issuer Bank. On successfully authenticating the Aadhaar the Issuer bank will credit the customer’s account and send a positive response to the MicroATM via the NPCI’s switch.


When a Funds Transfer transaction is initiated through the MicroATM of a Business Correspondent, the Remitting Bank will first get the transaction Aadhaar authenticated. Upon successfully authenticating the Aadhaar, the bank debits the Aadhaar enabled account of the initiating customer with the amount to be remitted and proceeds to send a Payment Request to the Beneficiary’s Bank based on the IIN provided, via the NPCI Switch. Beneficiary’s Bank will credit the Beneficiary’s Aadhaar enabled account and forward its positive response to the MicroATM that initiated the request, through NPCI switch. The customer will know the finality of the remittance from the Transaction Receipt.

Benefits of AEPS

1. The Aadhaar Enabled Payments System (AEPS) is a simple to use, safe and secure platform to avail benefits of using the Aadhaar number for conducting transactions.
2. The AEPS system uses biometric authentication of the individual, eliminating the possibility of fraud or non-genuine activity.
3. The AEPS system facilitates inter-operability between banks in a safe and secure manner.
4. The AEPS system has allowed banks to financially include more individuals and has permitted banks to reach customers they would not have been able to otherwise.
5. The AEPS allows customers to carry out basic banking activities without having to furnish sensitive bank account details.

The Inputs Required by the Customer


The Issuer Identification Number is a six digit code that is unique for every card user, this number is used to identify the issuing financial institution for the credit, debit, or any other card. This number is only used to identify the financial institution and not does not identify any product or service related to the card user.


The Aadhaar Number is a 12-digit Unique Identification Number (UID) being issued by the Unique Identification Authority of India (UIDAI) to all citizens of India free of charge. The UID is stored in a secure centralized database and basic demographic information and biometric information, such as, a photograph, ten fingerprints and an iris scan of the individual are linked to this number.


A fingerprint scan of the individual is required to complete a transaction as it will be authenticated against the fingerprint scan taken during the time of enrollment.

1 thought on “Aadhaar Enabled Payment System”

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