The UIDAI to enable more financial inclusion with Aadhar card has allowed Aadhaar Enabled Bank Account (AEBA) holders from marginalized sections of the society to have access with the banking system.
The UIDAI, which acts as a centralized authority for aadhar has joined hands with Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) to develop a platform mainly focused towards the marginalized section to secure access to banking via micro ATMs by using Aadhaar authentication.
The term AePS which stands for Aadhaar Enabled Payments Systems which aims to facilitate the financial inclusion via Micro ATMs or Point of Services which will be set up through the business correspondent of any bank using the Aadhar based authentication. The AePS allows an individual to carry on six types of transactions.
Under this AePS, customers are required to provide the following inputs to carry on transactions:
The following are the list of services provided by AePS:
The following are the main objectives of AePS
Step 1: To begin with, the customer will have to give his/her aadhar number details, fingerprint data and financial transaction via a micro ATMs
Step 2: Proceeding further the digital data, which will be in an encrypted form will be sent to the UIDAI through a ‘Bank Switch’
Step 3: The data will be verified and authenticated by the UIDAI and the result of the same will be reflected either with a YES/NO as a response.
Step 4: If the response is “YES”, then the bank will initiate the required authorization.