AEPS full form in banking is Aadhaar Enabled Payment System. It is a secure digital payment service launched by the National Payments Corporation of India (NPCI) that allows banking transactions using a customer’s Aadhaar number and biometric authentication. AEPS has played a crucial role in promoting financial inclusion, especially in rural and remote areas where traditional banking facilities may not be easily accessible.
What is AEPS?
AEPS is a bank-led model that enables customers to perform basic banking services using their Aadhaar-linked bank account. Instead of using a debit card, passbook, or signature, customers can authenticate transactions through fingerprint or iris scan. This system is especially helpful for people who may not be comfortable with digital banking or do not have access to smartphones and internet services.
AEPS can be accessed at micro-ATMs operated by bank correspondents, making banking services available at the doorstep of villagers and low-income customers.
How Does AEPS Work?
AEPS works based on Aadhaar authentication. The customer needs the following:
- Aadhaar number
- Bank name
- Biometric verification (fingerprint/iris scan)
The process includes:
- The customer visits a bank correspondent or micro-ATM.
- The correspondent enters the Aadhaar number and selects the type of transaction.
- Biometric verification is done.
- The transaction is processed instantly through NPCI’s AEPS platform.
- A receipt or SMS confirms the successful transaction.
This makes AEPS a simple, accessible, and secure mode of banking.
Services Available Through AEPS
AEPS allows customers to perform:
- Cash Withdrawal
- Cash Deposit
- Balance Enquiry
- Mini Statement
- Aadhaar-to-Aadhaar Fund Transfer
- E-KYC Services
These services make AEPS extremely useful in areas with limited ATM or branch availability.
Benefits of AEPS
- Provides banking access without ATM cards or smartphones
- Works in remote and rural areas
- Highly secure with biometric authentication
- Supports financial inclusion and government DBT schemes
- Enables quick and simple transactions
Conclusion
AEPS, or Aadhaar Enabled Payment System, has transformed India’s banking landscape by making essential services accessible to everyone, including the unbanked population. With its secure biometric system and wide reach, AEPS continues to support India’s journey toward a more inclusive and digital financial ecosystem.