What is the full form of AEPS

AEPS: Aadhar Enabled Payment System

AEPS stands for Aadhar Enabled Payment System, this system is developed and monitored by NPCI (National Payment Corporation of India).

The NPCI (National Payment Corporation of India) developed this system that helps people in rural areas to carry out their financial transactions by simply using their Aadhar numbers and scanning their fingerprints rather than typing a unique code. AEPS is mainly developed for places where installing an ATM (Automated Teller Machine) machine is difficult.

AEPS allows people to enjoy the facilities like fund transfer from one bank to another and for this, the user simply has to scan its fingerprint or can also do an Iris scan, there is no need for a unique four-digit code or to memorize the Aadhar number only thing that is needed AEPS (Aadhar Enabled Payment System).

AEPS (Aadhar Enabled Payment System) system works systematically on a centralized server maintained by the government of India. The customer can avail of all these facilities provided his / her account is linked with the Aadhar.

The AEPS (Aadhar Enabled Payment System) system proposed a new security idea in which the customer does not need all the details of his / her bank account, a fingerprint is sufficient enough for providing all the details to the bank authority.

Advantages of using AEPS

There are countless benefits of using AEPS (Aadhar Enabled Payment System) few of them are listed below;

1. Many non-banking and banking money transfers tasks are done using AEPS (Aadhar Enabled Payment System) through banking correspondence.
2. Correspondent of one bank is able to transfer money or funds to other banks also.
3. The customer does not need to equip any ATM (Automated Teller Machine) card for conducting money transfer activities.
4. For conducting funds transfer-related activities the customer only needs to scan his fingerprint to provide all bank details of the customer.

Provisions provided by AEPS

AEPS (Aadhar Enabled Payment System) basically provide a total of six facilities to their customers;

1. AEPS (Aadhar Enabled Payment System) provide cash withdrawal facilities to its users.
2. AEPS (Aadhar Enabled Payment System) also allows a cash deposit facility for the user.
3. The user can any time check their account balance and can fetch their account details through AEPS (Aadhar Enabled Payment System).
4. AEPS (Aadhar Enabled Payment System) provide Aadhar to Aadhar money transfer provided the bank account must be linked with the Aadhar.
5. The customer can take out a mini statement of his account using AEPS (Aadhar Enabled Payment System).
6. The customer can also avail of the facilities like eKYC.

Points to keep in mind while using AEPS

1. The person whose bank account is linked with the Aadhar can only avail of these facilities.
2. A person can have multiple accounts in the same bank but only the primary account is considered while using AEPS (Aadhar Enabled Payment System).
3. A person can link all his bank accounts with Aadhar for availing AEPS (Aadhar Enabled Payment System) facility but only one account per bank is considered.
4. AEPS (Aadhar Enabled Payment System) does not need any OTP (One Time Password) or 4-digit unique code for processing payment transfers.
5. Aadhar to Aadhar payment is possible with AEPS (Aadhar Enabled Payment System).

Money Transfer Limit

The RBI (Reserve Bank of India) has set no limit for the people availing AEPS (Aadhar Enabled Payment System) facility but many banks in the country have put a limit on the daily fund transfer restricting the users from sending or transferring only up to Rs 50000 in a day.

The purpose behind launching AEPS

The sole purpose of the government behind launching the AEPS (Aadhar Enabled Payment System) scheme is to make the citizens open bank accounts and connect them with Aadhar but at the same time, it is not possible for the government to open a bank branch in every village so they introduce this scheme where the user just simply has to scan its fingerprint or iris scan. There was no need for any code or written formalities and the users can transfer funds and money easily through this payment mode.