Caiib retail AEPS

Retail Banking






AADHAAR ENABLED PAYMENT SYSTEM (AEPS)






Benefits and Charges






Aadhaar Enabled Payment System is a way to get money from the
bank account. This system of getting money neither requires your signature nor
Debit card. You don’t even need to visit a bank branch for getting money
through the Aadhaar Enabled Payment System. Rather, it uses Aadhaar data for
the authentication. Like UPI and USSD, this is another initiative by the NPCI.






Benefits of Aadhaar Enabled Payment System






✅You can perform
financial and non-financial transaction through the banking correspondent.






✅A banking
correspondent of any bank can do the specified transaction of any bank.






✅There is no
need of signature or debit card.






✅It is fast and
secure. No one can forge your fingerprint.






✅Banking
correspondent can reach to the distant rural place with the micro POS.

✅ Transactions
Through the AEPS

✅ The Aadhaar
Enabled Payment System gives you banking facility on the go. However, it gives
you only basic services.






These 4 services can be done through the AEPS.

✅Balance Check






✅Cash Deposit






✅Cash Withdrawal






✅Aadhaar to
Aadhaar Fund Transfer






Except Fund transfer, you can perform all the transactions
through the banking correspondent of any bank. For fund transfer, you need the
BC of your own bank.

Requirements for AEPS






Through the Aadhaar Enabled Payment System, you can get money
without producing any paper or card. However, your Aadhaar number should be
registered with your bank account. If you did not linked your Aadhaar with a
bank account the Aadhaar Enabled Payment System would not be useful to you. For
AEPS transaction, you need following information.






a) Aadhaar Number






b) Bank IIN or Name






c) Fingerprint






It means, you have to only remember your Aadhaar number to do
the bank transaction. It is just like remembering own mobile number.






Aadhaar for Authentication






Remember, at the time of Aadhaar enrolment, your fingerprints
and iris image were taken. These biometric data gets linked to the given
Aadhaar number. These biometric data is unique to a person. No two person have
the same iris image or fingerprints. Thus, your Aadhaar number can be verified
by your finger prints. This biometric authentication makes Aadhaar the perfect
proof for the banking transactions. Indeed, it has replaced the signature.






Working

Suppose, you claim to be Vijay and produce the Aadhaar number of
Vijay. To verify it, bank official would take your fingerprints in a machine.
The machine gives the fingerprint details to Aadhaar Payment app. The app
immediately tallies your fingerprints with the fingerprints of the given
Aadhaar. If it matches, the system would permit for the transaction. In case of
mismatch, the system would not do any transaction.






Aadhaar Enabled Payment System Works






It surprising that only through the Aadhaar number you can
access your bank account. But it is possible because the Aadhaar is linked to
your bank account. This linking leads you to your bank account. The fingerprint
is authenticated by the UIDAI. In response to a transaction, UIDAI tells to the
bank about the authenticity of the user. Once, UIDAI authenticates, the bank
gives green signal to the transaction.






Thus, in the Aadhaar Enabled Payment System 6 institutions are
involved.

✅You, the bank
customer

✅Banking
correspondent – The facilitator of AEPS

✅The bank of BC
– The bank to which banking correspondent is attached

✅Your Bank – the
bank with which you held the bank account

✅NPCI – It does
switching, clearing and settlement of transactions

✅UIDAI – For
finger-print authentication






Charges of AEPS






Unlike UPI, the AEPS is a relatively costly transaction. It can
go up to Rs 15 for one transaction. On the other hand UPI charge is free to
nominal. For AEPS, three institution involved can charge fees. UIDAI may charge
a nominal fees for authentication, however it is not charging yet. The NPCI
charges 10 paise for authentication and 25 paise for settlement. The bank can
charge 1% of the transaction value if it is related to other bank. The minimum
fess for other bank transaction would be Rs 5 and maximum fees would be Rs 15.






AEPS may be costly than UPI and USSD but it gives a lot of
convenience to the rural people. It would bring bank to their doorstep and save
much time and transport expense. It would be just like a visit of ATM at every
doorstep. That is why government calls the POS as micro AT