Aadhaar Enabled Payment System
Aadhaar Enabled Payment System
Aadhaar Enabled Payment System (AEPS) is a secure payment platform for financial transactions based on Unique Identification Number and enables a user for the cashless transactions. This system allows the user to perform necessary banking transactions like balance enquiry, cash deposit, cash withdrawal, remittances through a Business Correspondent. In this article, we look at the APS system services in detail.
Know more about Aadhar Registration
Services Provided on AEPS
The below listed are the services offered by the Aadhaar Enabled Payment System that can be easily availed by customers. These services are 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 end-to-end financial inclusion gateway solution.
- Supports debit cards, magnetic stripe cards, virtual cards and cardless transactions.
- Aadhaar biometric-based transactions
- Supports various network protocols (CDMA/GPRS/PSTN/IP).
- Powers delivery channels like Micro ATM, ATM, Tablets & Mobile POS.
- Manages multiple Technology Service Providers (TSP) on-boarded by the Bank.
- Auto locks Micro ATMs when idle.
The benefits of AEPS are as follows:
- One can pay money, deposit amount, get a mini statement and check the balance.
- AEPS works with Micro-ATMs. This handheld ATM can go anywhere.
- A banking correspondent of any bank can do the specified transaction of any bank.
- There is no requirement for a debit card or a signature.
- It is fast and secure. No one can forge your fingerprint.
- Banking correspondent can reach to the distant rural place with the micro POS.
- Shopkeepers can also use AEPS to take payments.
How to use AePS?
You have to follow these below following steps:
Step 1: You have to go to a micro-ATM or banking correspondent in your area.
Step 2: Then, enter your 12-digit Aadhaar number in the PoS Machine.
Step 3: Provide KYC (Know Your Customer) information to open a new account.
Note: Aadhaar Number should be linked with the bank account.
Step 4: You have to choose the transaction type from the below categories:
- cash deposit
- mini statement
- fund transfer
- balance enquiry
Step 5: After that, you need to select the Provide verification through fingerprint/ iris scan
Step 6: Finally, the transaction gets completed, and the banking correspondent will give you a receipt.
Fund Transfer Limits under AePS
RBI has set no limit for transactions made through AePS. However, some banks have established a daily limit of a maximum of Rs. 50,000 on total transactions.
BHIM Aadhaar Pay Merchant App
BHIM Aadhaar pay application is designed for merchants. It is an Aadhaar based payments interface which provides real-time payments using the Aadhaar Number of the Customer and authenticating him/ her through their biometrics for the goods and services purchased.
Merchant will have to enter customer details, and the amount in his BHIM Aadhaar Pay Application and customer has to enter his biometric on the Merchant App after choosing his bank. The merchant can view the following transaction status through the application.
- Successful transaction
- Pending Transaction
- Failed Transaction
Note: A number of maximum Rs. 2000 can be taken using the single AEPS transaction. A customer can make a payment of maximum Rs. 5000 per day using the AEPS. Most of the banks provide different methods of taking cash with the AEPS in their merchant app. The same app can be used for the payments of UPI as well.
BHIM Aadhaar Pay Merchant Incentive Scheme
Incentive on Transactions
Incentives that will be given to the customers who perform financial transactions on the BHIM PNB app or BHIM app. It is valid for BHIM App only (hosted by NPCI) users. The incentive will be paid only to the new users of the BHIM app who have successfully download the BHIM app, then link the BHIM app with their bank accounts and undertake one successful financial transaction through BHIM app. Both Customer & Merchant should have their Aadhaar linked to their Bank Account.
Eligibility for Incentives
The incentive will be paid only once and only for the new users. BHIM Aadhaar Pay App user, who has entered themselves as a Merchant and is receiving payments through the app, will be eligible for an Incentive of 0.5 per cent of the transaction amount with the minimum incentive as Rs. 2 and an upper cap of Rs. 50 per transaction. All user transactions have to be of the amount equal to or above Rs. 10. The maximum transaction limit value will be Rs.10,000.
|Incentives based on Transaction||Amount per BHIM PNB or App User||
|1.||BHIM PNB & BHIM app users for making unique financial transactions||Rs. 150||Minimum transaction amount should be Rs.100. Only unique transactions are eligible for incentives.|
|2.||BHIM & BHIM-UPI app users for the financial transaction in banks.||Number of transactions (per month)||Incentives (per month)||Calendar month will be used for the calculation of “month.”|
|>=25 but less than 50||Rs. 100|
|>=50 but less than 100||Rs. 200|
BHIM Merchant Cashback Scheme
This scheme has been designed for merchants to adopt digital channels for making or receiving payments.
Eligibility Criteria for Earning Cash Back
- Minimum of 10 credit transactions per month for BHIM App user who has entered himself as “I am a merchant” and minimum of 5 credit transactions per month for the merchant of any bank receiving payment via BHIM PNB.
- Minimum transaction amount for the transactions eligible for cash back is Rs. 25.
Cashback Scheme Incentive Slab
BHIM Aadhaar Pay App user who has entered them as “I am a merchant” or “BHIM-PNB merchants” will be eligible for following incentives.
|Number of credit transactions in a particular month||Cashback to the merchant at the end of the certain month||
|BHIM Merchant||For earning incentives the minimum credit transactions to be done => 10||10% of the transaction amount with an upper cap of the incentive of Rs. 50 per transaction||Minimum transaction value eligible for cash back will be Rs. 25|
|Maximum cash back is Rs. 1000 per merchant (per month)|
|A calendar month is used for calculation of “month.”|
|BHIM-PNB merchants||For earning incentives the minimum credit transactions to be done => 5||10% of the transaction amount with an upper cap of the incentive of Rs. 50 per transaction||Minimum transaction value eligible for cash back is Rs.25;|
|Maximum cash back is Rs.1000 per merchant per month.|
|A Calendar month is used for calculation of “month.”|
Note: The money is credited to your bank account before the 10th day of the next month. The total cashback would be credited monthly. Meanwhile, you can check your cash back in the rewards section of the BHIM app.
Know about Aadhar linking articles use the below links:
Post by Sinduja Shankar
IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.