AEPS: Changing the Banking Experience

AEPS or Aadhar Enabled Payment System is devised by the Government of India for safe and secure transactions and also to popularize the banking system extensively across the country. The AEPS will empower people from even remote areas to connect and utilize the banking system to send and receive money and also to conduct various financial and non-financial banking services.

Since the AEPS includes a two-step authentication, with the Aadhar number and biometric evidence, it is safer and more secure. The biometric authentication accepts either fingerprint scan or iris scan, which cannot be forged and so provides assurance of protected transaction. Some of the popular AEPS services include  ICICI AEPS API.

How do AEPS works?

The AEPS machine resembles a POS machine, but, the transaction procedures are different.  The AEPS transactions do not require a Debit or Credit card for transactions or withdrawals, it uses the customer’s Aadhar number, Bank’s Issuer Identification Number, and biometric authentification for transactions.

The customer is to share the unique Aadhar number, the IIN number, and biometric data through an automatic teller machine for verification. Once the verification is completed from the UIDAI site, the customer is allowed to process the transaction.

The AEPS service can be availed through Customer Access Points controlled by Business correspondents across the country and aims at accrediting people from every section of the society with banking liberty. Every transaction settled through AEPS, either Inter-bank or Intra-bank provides the client with a transaction slip with complete details and the status of the transaction.

Banking and other Services supported by AEPS:

The Reserve Bank of India and UIDAI (Unique Identification Authority of India) has teamed up to create the AEPS platform to evolve a safe, secure, and user-friendly banking experience. The AEPS allows conducting transactions at C2B and C2G points and also a variety of other banking services; such as Cash withdrawal, cash deposit, balance inquiry, bank statement, Aadhar to Aadhar fund transfer, eKYC, Aadhar sending status, and Finger detection.

Specifications of AEPS:

As the AEPS is set to revolutionize the banking sector, it is crafted with certain specifications:

• The AEPS can work only with Aadhar-linked bank accounts. So, to use an AEPS transaction it is mandatory to link the Aadhar with the bank account.

• If an individual has more than one account in the same bank, the AEPS will be available only for the primary account.

• The transaction limits for  AEPS transactions are differently fixed by banks, however, the RBI has not imposed any such limitations for an AEPS transaction.

• AEPS transactions do not require any pin or password, it works with Aadhar verification only.

AEPS boosting Online banking:

• With digital banking becoming the most preferred banking service among the millennials, who happen to be the most tech-friendly and also the ones with purchasing power, AEPS is working towards better consumer services and boosting digital banking services in India.

• AEPS entering the banking sector has been a game-changer for businesses and enterprises as it provided ease to the day-to-day financial operations. With the help of banking API businesses can manage their cash receivables and payables directly through the Enterprise Resource Planning system, a software used to manage day-to-day business activities.

• The integration of API has also helped flourish the fintech business and startups as they are now able to improve their services and also reach out to a wider circumference.

Now, to look at the AEPS method more intensively and study its uses we can observe the instance of ICICI bank and how they are bringing a change to the banking experience by integrating the AEPS API.

•  ICICI AEPS API works toward providing its customer with a 24X7 banking service of instant transfer. It is an inter-operable function that is safe and secured with biometric authentication.
• It has eased business transactions for merchants as they now get instant seamless fund transfers from customers, eliminates cash handling risk and costs, and safe and secure dealings with lower transaction charges.
• For customers, the AEPS has provided ease of handling, as they are no longer required to remember pins or passwords or carry credit or debit cards and yet can execute cashless transactions. All they require is an Aadhar-linked bank account. Transactions are now all the more secure with biometric authentication and also save time.
• However, the AEPS transactions are only limited to over-the-counter payments and require a biometric scanner attached to the system.

Final Words:

To sum up we can say that the AEPS method is here to definitely change the banking experience for one and all. It is more convenient, easy to operate, customer-friendly, and most importantly does not raise any security issues. The success of the AEPS lies in the fact that it is far-reaching and ambitions to link people across the country to the banking system, which will help the government to maintain the transaction of the public welfare schemes by directly transferring amounts to the beneficiaries without involving any third party.

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