AEPS stands for Aadhar Enabled Payment System in its entire form.
Aadhar Enabled Payment System (AEPS) is a well-known term. The NPCI has implemented an advanced approach called the Aadhaar Enabled Payment System.
NPCI is the National payments corporation of India. AEPS enables the users to do successful transactions on a small ATM by inputting their Aadhaar numbers. The users can finish numerous financial transactions via fingerprints or Iris scanning.
The concept of AEPS
Users do not need to provide their account information or credit card numbers to complete transactions using this advanced payment method.
Users can use their Aadhaar digits to transfer money from one account to another using the AEPS method.
This AEPS method operates based on a central server. This way, users can transfer their money from one bank to another bank safely. The users can transfer money in the same as the sender’s as well as in a different bank account.
Because this method does not require financial information, this advanced payment system acts as an extra layer of security for online payers. Furthermore, the option of conducting transactions using advanced fingerprint security makes it even more unique and secure.
Advantages of AEPS
To comprehend why AEPS is so popular, you must first comprehend its advantages.
The AEPS approach has the following advantages:
- Banking support is provided by AEPS for both bank-related and non-bank-related transactions.
- Banking support from one bank can be used to process transactions from other banks.
- AEPS transactions do not require the use of financial information such as account numbers, card numbers, or any other passwords.
- The introduction of the unique function of using the user’s fingerprints provides additional security and safety coverage.
- People in rural and urban locations can use AEPS to conduct cashless transactions in a secure and efficient manner.
- Instantaneous payments
Facilities through AEPS
AEPS users can take advantage of a number of advanced financial transaction features. The following are examples of advanced and valuable facilities:
- Withdrawing cash safely
- Deposition of money
- Anytime, anywhere, you can check your bank balance.
- Simple and smooth Money transfer via Aadhaar
- Miniature bank account statements
- Fingerprint detection or Iris identification is an eKYC feature.
Process to use AEPS
You must now be considering how to use this unique and complex strategy correctly. Transferring money and making cashless payments via the AEPS technique is simple and quick. The following is the procedure for completing financial transactions using the AEPS method:
- Get banking assistance in your region. The bank does not have to be the one where the user holds an account. Users can utilize any bank regardless of whether or not they have an account.
- Make a payment using the AEPS method.
- In the tiny ATM, enter the allotted Aadhaar number.
- Choose the mode of payment, i.e., Cash deposit, mini statement, withdrawing money, knowing your balance, withdrawal of money, and eKYC.
- Select the bank with which you want to make AEPS payments.
- Enter the payment amount.
- To authorize the payment, enter your fingerprints.
- Microsecond transactions are simple and quick.
- Take a copy of your payment receipt.
Limitation of Fund transfer in AEPS
The AEPS mode of payment has the distinct advantage of not limiting the number of transactions a user can make in a single day.
However, some banks have set a limit on how many and how much payments a user can make using the AEPS technique. A daily limit of up to 50,000 INR is imposed by some of these banks.