The Government of India (GOI) has had one of the largest objectives of financial inclusion. The Aadhaar Enabled Payment System (AePS) was initiated to make banking services available to all citizens and particularly the rural and semi-urban population. AePS is an innovative Aadhaar-based system which enables individuals to make banking payments by Aadhaar number and by using their biometrics.
Citizens can now withdraw cash, deposit money, check balances, transfer money, and perform eKYC verification without having to remember their account numbers, or carry debit cards, as biometric Micro-ATMs can now complete all these tasks. This is a system that is driven by National Payments Corporation of India (NPCI) with the aid of UIDAI-authenticated biometric devices.
AePS stand as Aadhaar Enabled Payment System. It is an impregnable payment system that offers banking services with the use of Aadhaar numbers and biometric identification (fingerprint or iris scan).
The core objective of AePS is to bring banking amenities to all corners of the society, such as the rural people, the old population, and to those that might not be at ease using conventional forms of banking. Customers just need to give a 12-digit Aadhaar number, and it is verified using a biometric device, and in such a way, they can access their bank accounts instantly.
Biometric Micro-ATM is a small size device resembling a miniature banking machine. It enables the use of biometric authentication to perform transactions related to finances, rather than the use of physical cards or PINs.
These Micro-ATMs integrate:
Secure software
Connection to banks and NPCI servers.
They provide a convenient, dependable and fraud free banking service. The authentication is also biometric and thus there is no possibility of misuse and verification of identity becomes highly precise.
Biometric Micro-ATM is a handheld financial kiosk that is a small, lightweight banking device that will allow performing basic financial transactions, based on Aadhaar-authentication. The Micro-ATMs also have the advantage that unlike the traditional ATM, they are portable and can be operated by banking correspondents, which makes them particularly helpful in rural and remote settings, where full-scale bank branches or ATMs may not be present. They have the latest biometric features such as fingerprint and iris recognition that are extremely safe, precise and free of fraud of genuine verification of a customer identity.
Using a Biometric Micro-ATM, the user is allowed to access services of cash withdrawal, balance inquiry, fund transfer, mini statements, and Aadhaar-enabled eKYC. The gadget will be connected to the bank server via AePS, and the transactions can be made transparently with the help of only the Aadhaar number and biometric verification of the customer. This removes the use of debit cards, PINs or complicated processes. Micro-ATMs with Biometrics are conveniently designed and secured; they are also designed to offer financial services to all regions of the country.
The main features of biometric Micro- ATMs include:
Fingerprint and iris readers are included in an all-in-one mobile terminal.
Capacity to determine accuracy and compliance through UIDAI/STQC certified sensors.
Contemporary buildings and design to be easily used.
Secure transaction records retention facilities.
This renders biometric Micro-ATM to be the most appropriate in AePS transactions particularly where the traditional ATMs or bank branches are not readily accessible.
AePS offers biometric Micro-ATMs that offer a great variety of banking services:
Cash withdrawal - The customers would be able to withdraw cash by authenticating themselves using Aadhaar and Biometrics.
Balance Check - Check account balance immediately without the need to visit a bank branch.
Cash Deposit- Securely deposit money using Aadhaar authentication.
Mini Statement - Get a brief overview of your last transactions.
Biometric eKYC Verification - Full KYC fingerprint or iris scan.
Fund Transfer - Transfer funds between Aadhaar-linked bank accounts.
AePS has several advantages to the customers and banks:
✅ Safe and Secure - Aadhaar and biometrics are used to authenticate transaction and minimize fraud.
✅ Simple to Operation - No cards and account numbers to memorize.
✅ Inclusive - This is targeted at the rural population and aged citizens as well as those who are not very literate.
✅ Interoperable - It is highly flexible as it works with various banks.
✅ Quick Transactions - Authentication and transaction processing take place in a few seconds.
AePS makes the banking services affordable to all by eliminating barriers such as account numbers, passwords among others.
The infrastructure that is needed to allow AePS transactions is as follows:
STQC/Aadhaar certified fingerprint or iris biometric Micro-ATM.
Aadhaar Number of customer (12 digits).
Bank Correspondent (BC) - This is a representative of the bank like a Kirana store owner, a member of the SHG or an employee of a post office who makes transactions possible.
This is how an average cash withdrawal of AePS would work:
Customer Request - This involves the customer going to a bank correspondent and asking them to withdraw.
Biometric Capture - BC mobile device captures the Aadhaar number, the fingerprint or iris scan of the customer using Micro-ATM.
NPCI Validation - The request is passed to NPCI switch to validate.
UIDAI Authentication - NPCI passes the request to UIDAI that compares Aadhaar and biometric data.
Confirmation - UIDAI dispatches a confirmation to NPCI.
Debit Request- NPCI transmits a debit request to the bank of the customer.
SMS Alert- The customer receives an SMS of the debit.
Fund Transfer - The amount withdrawn is deposited as the balance of the bank account of the BC.
BC Notification - The BC is notified of the credit in an SMS.
Cash Handover - The BC hands the cash to the customer.
This transparent operation allows making transactions fast and safe.
The Mantra MFS110 L1 Fingerprint Scanner is one of the most dependable and highly trusted machines that are used in AePS transactions. It is a high-end biometric implementation tailored to provide the enhanced security authentication to the Aadhaar-based financial and identity verification schemes in India. Designed with a powerful optical sensor and meeting FAP10 standard, the MFS110 guarantees that all the fingerprints recorded by the sensor are precise, clear and fit with Aadhaar based authentication steps. Its high speed USB 2.0 interface enables easy and safe data transfer and hence it is ideal to be used by the banking correspondents, government agencies and service providers who demand high speed, error free biometric authentication. The device is simple to install, it is compatible with Windows and Android systems and has secure communication to stop tampering of data. Its robust design, and scratch-resistant sensor surface allow the Mantra MFS110 to work well in the toughest conditions even in case of excessive daily use, which is why it is the right solution to the AePS and other biometric applications.
Scratch-Free Sensor Surface - Long-lasting and durable.
High-Speed USB 2.0 Interface - Provides quick and safety in communication.
Auto Capture with Quality Check - Incorporated the NIST quality standards of proper finger print capture.
Multi-OS Support - Works with windows and Android.
WHQL Certified Device Driver - Assures of smooth usage and installation.
It is a very common device in the AePS enabled Micro-ATMs in terms of reliability and adhering to the UIDAI standards.
AePS is not just a payment system but it is a financial inclusion tool. Using Aadhaar and biometrics, it has been able to make financial services available even to those who do not have the traditional knowledge of banking.
Rural Empowerment - The farmers, laborers, and the villagers do not need to travel long distances to withdraw or deposit money.
Urban Convenience - AePS can be used by the older citizens and people who are not good with digital banking.
Government Benefits - AePS is commonly applied in the payment of subsidies, pensions and welfare benefits to recipients.
With Aadhaar Enabled Payment System (AePS), which uses biometric Micro-ATMs to access banking service, the approach to getting banking services in India is changing the face of banking in the country. Transactions under fingerprint and iris authentication are safe, quick and inviting. The reliability is increased by the use of devices such as the Mantra MFS110 L1 Fingerprint Scanner and therefore, AePS is a strong solution in financial inclusion.
AePS helps to overcome the distance between banks and citizens and guarantee that all these people, living in a village or in a city, can access safe and convenient banking services.
AePS is a banking service that allows customers to access basic financial transactions using their Aadhaar number and biometric authentication, without a debit card or PIN.
AePS is activated when a customer’s Aadhaar number is linked with their bank account and biometric details are registered. A bank or BC point enables the service.
AePS currently supports cash withdrawal, cash deposit, fund transfer, balance inquiry, mini statement, yes/no authentication, BHIM Aadhaar Pay, and dual authentication. These services work across both inter-bank and intra-bank networks.
Yes, AePS uses Aadhaar-based biometric verification, ensuring secure and authenticated transactions without sharing sensitive banking details.
Any Aadhaar-linked bank account holder can use AePS services at authorized bank branches or BC/Micro-ATM locations.
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