Aadhaar Enabled Payment System (AEPS) is a type of payment system that enables users to access basic banking services through their Aadhaar number and biometric authentication.
With AEPS, individuals can carry out financial transactions such as cash deposit, cash withdrawal, balance inquiry, and inter-bank transactions using a micro ATM.
How was AEPS started?
Aadhaar Enabled Payment System (AEPS) was started by the Indian government as part of its efforts to promote financial inclusion and digitalization of financial transactions in the country. The idea behind AEPS was to provide basic banking services to individuals who may not have access to traditional banking services due to various reasons, such as lack of identity proofs, low literacy levels, or limited financial resources.
AEPS was launched as part of the Indian government’s Jan Dhan Yojana (PMJDY) scheme in 2014.
The objective of PMJDY was to provide access to financial services, including banking services, to all citizens, especially those in rural areas. Under PMJDY, individuals were given a Jan Dhan account, linked to their Aadhaar number, and they could access basic banking services through AEPS.
With the rise of digital financial services and the increasing use of Aadhaar as a form of identity, AEPS has become a popular way for individuals to access financial services in India. Today, AEPS is used by millions of people in India to carry out various financial transactions and is considered an important step in the country’s journey towards a cashless economy.
Objectives of Aadhar enabled payment system (AEPS Service)
The objectives of Aadhaar Enabled Payment System (AEPS) are as follows:
Financial Inclusion: AEPS is aimed at providing financial services to individuals who may not have access to traditional banking services due to various reasons, such as lack of identity proofs, low literacy levels, or limited financial resources.
Improved access to banking services: AEPS provides basic banking services to individuals through micro ATM, which are portable devices that can be set up at various locations, such as shops. This makes it easier for individuals to access banking services, even if they do not live near a bank branch.
Reduced costs: AEPS reduces the cost of providing basic banking services by eliminating the need for physical bank branches and allowing financial transactions to be carried out through micro ATM.
Improved security: AEPS uses biometric authentication and the Aadhaar system to ensure the security of financial transactions. This reduces the risk of fraud and helps to protect the interests of individuals.
Better data management: AEPS provides a central platform for the management of financial data, making it easier for banks and other financial institutions to monitor and track financial transactions.
Aadhaar Enabled Payment System (AEPS) provides a range of basic banking services to individuals who may not have access to traditional banking services.
The following are the banking services that are typically offered through AEPS:
- Cash deposit
- Cash withdrawal
- Balance inquiry
- Bill payments
- Mobile recharges and many more.
What is AEPS Portal?
AEPS Portal is a platform that provides access to the AEPS service. It is an online platform that enables financial transactions to be carried out using the Aadhaar number and biometrics.
The AEPS Portal is used by banks, financial institutions, and other entities that provide AEPS service to individuals.
The AEPS Portal provides a centralized platform for the management of financial transactions, including cash deposits, cash withdrawals, balance inquiries, etc.
It also provides real-time monitoring and tracking of financial transactions, which helps to ensure the security of the transactions and the privacy of individuals.
The AEPS Portal (HalliPay) is designed to be user-friendly and accessible, making it easy for individuals to carry out aeps transaction. The use of biometrics and the Aadhaar system ensures the security and accuracy of the transactions, and the platform is regularly updated to ensure that it remains secure and reliable.
Overall, the AEPS Portal is an important tool for promoting financial inclusion and digitalization of aeps service in India. By providing access to basic banking services, the AEPS Portal like HalliPay is helping to improve the financial well-being of individuals and promoting economic growth in the country.
How to choose best AEPS Portal?
Here are a few factors you might want to consider when evaluating different AEPS portals:
Security: Look for portals that have robust security measures in place, such as encrypted data transfer and biometric authentication, to ensure the safety of your personal and financial information.
User experience: Choose a portal that is user-friendly and easy to navigate, with a simple and straightforward transaction process.
Availability of services: Check that the portal offers the specific services you need, such as balance inquiry, cash withdrawal, or money transfer.
Network coverage: Consider the reach of the portal’s network and its availability in your location.
Commissions: Compare the commission of different portals for transactions, and choose one that offers competitive rates.
Customer support: Evaluate the quality of customer support offered by the portal, including availability of support through phone, email, or chat, and the responsiveness of their support team.
By considering these factors, you can find the best AEPS portal that meets your needs and offers a secure and convenient way to carry out financial transactions.
What is required for AEPS transaction?
To carry out an Aadhaar Enabled Payment System (AEPS) transaction, you will need the following:
Aadhaar number: Your Aadhaar number is the unique identifier that links your biometric and demographic information to your bank account.
Bank account linked to Aadhaar: Your bank account must be linked to your Aadhaar number in order to use AEPS. This can be done by visiting your bank branch and providing your Aadhaar number.
Mobile number: Your mobile number must be registered with your Aadhaar number in order to receive notifications and receipts for AEPS transactions.
Biometric device: You will need access to a biometric device, such as a fingerprint scanner or iris scanner, in order to undergo the biometric authentication process.
AEPS service provider: You will need access to an AEPS service provider, such as find your nearest HalliPay store, in order to initiate and carry out AEPS transactions.
Overall, AEPS transactions are simple and convenient, and require only a few basic items in order to be carried out. By providing access to basic financial services through the use of Aadhaar and biometric authentication.
Why AEPS is important in tier 3 cities?
AEPS (Aadhaar Enabled Payment System) is particularly important in tier 3 cities for a number of reasons:
Low banking penetration: Tier 3 cities often have lower banking penetration rates, with fewer people having access to traditional banking services. AEPS provides a digital platform that enables people to conduct transactions using their Aadhaar number, making it easier for them to access financial services.
Cashless transactions: Tier 3 cities often have a significant amount of cash transactions, which can be inconvenient and unsafe. AEPS enables people to make digital transactions, which are more secure and efficient, and eliminate the need for cash transactions.
Government benefits: Tier 3 cities often have a large number of people who rely on government welfare schemes, pensions, and subsidies. AEPS enables them to receive these benefits directly into their bank accounts, making the process more efficient and transparent.
Easy to use: AEPS transactions are easy to perform and do not require any technical knowledge or expertise, which is particularly important in tier 3 cities, where people may not have a high level of digital literacy.
Low transaction fees: AEPS transactions are generally charged lower fees than other digital payment modes, making it a cost-effective option for users in tier 3 cities, who may have lower income levels.
Overall, AEPS is important in tier 3 cities as it provides a convenient, cost-effective, and secure platform for people to access financial services, which can promote financial inclusion and economic growth in these areas.