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Sinduja Shankar

Expert

Published on: Sep 25, 2026

Aadhaar Enabled Payment System

The Aadhaar Enabled Payment System (AEPS) is a secure platform designed for seamless financial transactions using the Unique Identification Number, facilitating cashless operations. This system allows users to conduct essential banking tasks such as balance inquiries, cash deposits, withdrawals, and remittances through a Business Correspondent. In this guide, we explore the AEPS services in detail.

Learn more about Aadhar Registration and discover how AEPS can simplify your transactions.

Services Provided on AEPS

The following services are offered by the Aadhaar Enabled Payment System, available in both inter-bank and intra-bank modes:

  • Cash Withdrawal
  • Cash Deposit
  • Balance Enquiry
  • Aadhaar to Aadhaar Fund Transfer
  • Mini Statement
  • Best Finger Detection (BFD)

Features and Benefits of Aadhaar Enabled Payment System

  • An inclusive financial gateway solution, supporting debit cards, magnetic stripe cards, virtual cards, and cardless transactions.
  • Aadhaar biometric-based transactions enhance security and efficiency.
  • Compatibility with various network protocols such as CDMA/GPRS/PSTN/IP, empowering delivery channels like Micro ATM, ATM, Tablets, and Mobile POS.
  • Efficient management of multiple Technology Service Providers (TSP) on-boarded by banks.
  • Inherent security feature: Micro ATMs auto-lock when idle.

The benefits of AEPS include:

  • Enable payments, deposit funds, retrieve mini statements, and check balance with ease.
  • Micro-ATMs facilitate banking without the need for a debit card or signature, making it fast and secure against unauthorized access.
  • Banking correspondents equipped with mobile POS can access rural and remote areas for service delivery.
  • Merchants, including shopkeepers, can leverage AEPS for payment acceptance.

How to Use AePS?

To utilize the AEPS facility, follow these simple steps:

  1. Visit a nearby micro-ATM or banking correspondent.
  2. Input your 12-digit Aadhaar number into the PoS machine.
  3. Provide KYC (Know Your Customer) details for account setup. For related processes, you might find Virtual Office services in Durgapur beneficial.
  4. Select the desired transaction type from options such as cash deposit, withdrawal, mini statement, fund transfer, balance enquiry, and eKYC.
  5. Verify your identity using a fingerprint or iris scan.
  6. Upon successful transaction, receive a receipt from the banking correspondent.

Fund Transfer Limits under AePS

The Reserve Bank of India (RBI) has not set any transaction limits for AEPS. However, individual banks may impose a daily limit, often capping at Rs. 50,000 on total transactions. For more details on transaction benefits, refer to GST Return Filing in Kottayam.

BHIM Aadhaar Pay Merchant App

The BHIM Aadhaar Pay application, designed specifically for merchants, facilitates real-time payments through Aadhaar identification and biometric authentication for goods and services. Merchants enter customer details and transaction amounts in the app, while customers verify through biometrics.

Transaction Process

Merchants process transactions via the BHIM Aadhaar Pay Application, where they can check the status as Successful, Pending, or Failed. You can read more about similar processes in the context of 12A and 80G Registration in Jodhpur.

Note: A maximum of Rs. 2000 can be transacted using AEPS in a single session, with a daily payment cap of Rs. 5000. Banks offer different methods under AEPS for cash transactions via merchant apps, which are also compatible with UPI payments.

BHIM Aadhaar Pay Merchant Incentive Scheme

Incentive on Transactions

This scheme incentivizes customers conducting transactions via the BHIM PNB or BHIM app. Applicable solely to new BHIM app users who link it to their bank accounts and complete at least one financial transaction.

Eligibility for Incentives

Eligibility is reserved for new users only, with merchants receiving an incentive of 0.5% of the transaction amount, capped at Rs. 50 per transaction, for amounts Rs. 10 and above. Maximum transaction value for incentives is Rs. 10,000.

S. No.Incentives based on TransactionAmount per BHIM PNB or App UserConditions
1.BHIM PNB & BHIM app users for unique financial transactionsRs. 150Unique transactions only, minimum transaction amount of Rs.100
2.BHIM & BHIM-UPI app users conducting bank transactionsNumber of transactions (per month)Incentives (per month)Calendar month determines "month" period
≥ 25 but < 50Rs. 100
≥ 50 but < 100Rs. 200
≥ 100Rs. 250

BHIM Merchant Cashback Scheme

This cashback scheme encourages merchants to use digital channels for transactions. For more insights, explore discussions on GST Registration in Chhattisgarh.

Eligibility Criteria for Earning Cash Back

  • Minimum of 10 credit transactions per month for BHIM App users registered as merchants, or 5 credit transactions for other bank merchants via BHIM PNB.
  • Eligible transactions must meet a minimum amount of Rs. 25.

Cashback Scheme Incentive Slab

UserNumber of credit transactions (per month)Cashback to merchant (per month)Conditions
BHIM Merchant≥ 10 transactions10% of transaction amount capped at Rs. 50 per transactionMinimum transaction value of Rs. 25 for cashback eligibility
Maximum cashback of Rs. 1000 per merchant monthly
Calendar month used for "month" calculation
BHIM-PNB merchants≥ 5 transactions10% of transaction amount capped at Rs. 50 per transactionEligible transaction value minimum is Rs. 25
Maximum cashback Rs. 1000 per merchant per month
Calendar month basis for "month" calculation

Note: Cashback is credited to your bank account before the 10th of the following month, and the total amount is reflected in the BHIM app's rewards section. For further exploration of related topics, visit Aadhaar Name Change Information.

For more information on Aadhaar linking articles, consider the following resources:

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Frequently Asked Questions

Common questions about Aadhaar Enabled Payment System.

AEPS is a secure payment platform that enables cashless transactions based on an individual's Unique Identification Number (Aadhaar). It allows users to perform various banking transactions like cash withdrawal, deposit, balance enquiry, and remittances through a Business Correspondent.
The key services offered by AEPS include Cash Withdrawal, Cash Deposit, Balance Enquiry, Aadhaar to Aadhaar Fund Transfer, Mini Statement, and Best Finger Detection (BFD). These services are available in both inter-bank and intra-bank modes.
To use AEPS, you need to visit a micro-ATM or banking correspondent in your area. You enter your 12-digit Aadhaar number, provide KYC information (if required), choose the desired transaction type, and authenticate the transaction using your fingerprint or iris scan.
Some benefits of AEPS include the ability to perform financial transactions without a debit card or signature, fast and secure biometric-based authentication, accessibility in remote areas through micro-ATMs, and the convenience of interoperability between different banks.
While the RBI has not set a limit, some banks have established a daily limit of a maximum of Rs. 50,000 on total transactions made through AEPS.
The BHIM Aadhaar Pay Merchant App is designed for merchants to accept Aadhaar-based payments from customers. It allows customers to make real-time payments using their Aadhaar number and biometric authentication.
Customers need to provide their details and the transaction amount to the merchant through the app. They then authenticate the transaction using their biometric data (fingerprint or iris scan) after selecting their bank.
The BHIM Aadhaar Pay Merchant Incentive Scheme offers incentives of 0.5% of the transaction amount (with a minimum of Rs. 2 and a maximum of Rs. 50 per transaction) for merchants receiving payments through the app.
To be eligible for the BHIM Merchant Cashback Scheme, BHIM App users who have registered as merchants must complete at least 10 credit transactions per month, while merchants of other banks receiving payments via BHIM PNB must complete at least 5 credit transactions per month.
The article provides links to resources on linking Aadhaar to various services like PAN for Income Tax filing, Ration Card, and Universal Account Number (UAN). Following the guidelines on these official sources can help you link your Aadhaar seamlessly.