Aadhar Enabled Payment System

BHIM Aadhaar Pay enables Merchants/Vendors to receive payments electronically from customers over the counter through Aadhaar authentication. It allows that Merchant can be associated with any bank, the only condition is that the bank must be live on BHIM Aadhaar Pay. And through BHIM Aadhaar Pay, One can accept payment from customer of any bank by authenticating Customer’s biometrics.

To be able to implement BHIM Aadhaar Pay app, Merchant should have an android Mobile with BHIM Aadhaar app and certified biometric scanner attached with Mobile phone/kiosk/Tablet on USB Port or Micro-Atm/POS, mPOS. Both Customer and Merchant should have their Aadhaar linked to their bank account

For Agents

1. Long term Business Opportunity.
2. Higher Profits from minimal Investments.
3. Instant Settlement
4. AEPS agent will be classified as Agent.
5. Becoming AEPS Agent is a profitable business opportunity.
6. AEPS agents can convert their shops into mini ATM.
7. AEPS provides a solution to their AEPS related needs.

For Customers

1. Easy, safe and secured way of money withdrawal, transfer and balance enquiry.
2. Interoperable across various banks.
3. It adds upto 5 bank accounts.
4. AEPS has been constructed for every section of society so that everyone can take advantage of this secured payment system.
5. Any bank account holder can access these AEPS services by simply identify their identity by biometrics and Aadhaar number. He do not need to remember the Bank Account Number.
6. It checks and download mini statements.

1. Cash Withdrawal
2. Cash Deposit
3. Balance Enquiry
4. Mini Statement

The AEPS works in point of sale(POS) machine. The Customer has to insert his/her Aadhaar Number instead of debit/credit pin and authenticate the transaction using Customer’s biometric data.

The following information will be required while executing transaction.

1. Bank Issuer Identification Number(IIN) or name.
2. Aadhaar Number
3. Fingerprint

1. Firstly, You have to visit the nearest correspondent in your zone. Please note that he is not correspondent from your bank only.
2. After the above step, You have to enter 12-digit Aadhaar number in POS-point of sale machine.
3. Then, choose the type of transaction- cash withdrawal, Cash deposit, Interbank or Intrabank fund transfer, Obtain a mini statement, balance enquiry.
4. Select the name of bank.
5. Fill amount of transaction.
6. Authenticate the transaction by giving fingerprint IRIS scan.
7. Then transaction gets completed within no time and you can collect your receipt.

How to get it?

1. Provide KYC information to open a new bank account.
2. Aadhaar Number should be linked with bank account.

What is required for transaction?

1. Micro ATM
2. Remember Aadhaar
3. Give bank name
4. Present self with fingerprint scan.
5. Assisted Mode

Transaction cost

Merchant may get charged based on bank’s discretion but there is no cost for customer.

Funds Transfer Limit

Banks define this transfer limit. But there is no limit for RBI.

Service available from no. of operators

1. Interoperable
2. 118 banks

Service Activation

1. None
2. 1-2 minutes post Aadhaar Seeding

According to recent reports, Growth in transactions through AEPS is declining. Last Year, In Bengaluru, Rate of growth in transactions through AEPS in April - October 2019 dropped by more than two-thirds from year ago period while transactions grew at 3.5% compared with almost 50% in same period of the previous year.

Transactions dropped in November to 196 million. If we compare it from last year then in last year, growth was more than 32% but this year, it’s a decline. Experts said it will be restricted to rural areas where most people get welfare payments from govt and have pre-existing Aadhaar linked bank accounts.

Now As the supreme court has scrapped the need for linking aadhaar card with bank account, it will definitely impact the payment system.

In a Way, We can say that future of AEPS is uncertain in India. Although it’s a secured payment system but its demand is not upto mark. There may be a reason that People are not aware about it or may be people are not sure of its security.

So, If we look at recent reports, Transactions through AEPS are declining. But experts say that future of AEPS is uncertain, its demand can rise at any point of time when more people opt this easy way of withdrawing / transferring money.

Anyone who wants to be AEPS Agent with Inditab can raise a query on support@inditab.com or can call on +91-8800-65-3385. Any query would be answered on priority basis.