Aadhaar Enabled Payment System (AEPS)

 

Aadhaar Enabled Payment System (AEPS)

 

Aadhaar Enabled Payment System is another payment management presented by the National Payments Corporation of India to banks and money related foundations utilizing 'Aadhaar'. Aadhaar is a special distinguishing proof number gave by Unique Identification Authority of India (UIDAI). This administration can be profited at Customer Access Points (CSPs) oversaw by Business Correspondents (BCs) utilizing Point of Sale (POS) gadgets. AEPS benefits across India through its delegated BCs who use Micro ATM, PoS machines.

 An AEPS is a bank determined model which licenses online interoperable cash related thought trade at PoS (Micro ATM) through the Business correspondent of any bank using the Aadhaar validation. AEPS licenses you to finish six sorts of trades. This organization draws in a bank customer to use Aadhaar as his/her character to get to his/her individual Aadhaar engaged money related adjust and perform crucial intrabank or interbank trades, including – checking balance, depositing cash, Withdrawal of cash and Settlements. For all trades whether intrabank or interbank, an Operation Receipt in print and offered over to the customer as a trade record with its remission status, by the BC through whom the trade was begun. A Business Correspondent who is an arbiter chosen by a bank to extend Banking organizations in zones where they don't have a branch can guarantee Micro ATM to offer AEPS organizations to bank customers. The degree of activities grasped by the Business Correspondents joins, cash withdrawals and interbank repayments. The principle data sources required for a customer to do a trade under this circumstance are: -

 

• IIN (Identifying the Bank to which the customer is connected)

• Aadhaar Number

• Unique mark caught during their selection

 

Targets

·        To connect with a customer to use Aadhaar by way of his/her character to get to individual Aadhaar engaged record and perform essential monetary trades like cash store, cash withdrawal, Intrabank or interbank fund move, balance enquiry and get a little verbalization through a Business Correspondent

·        To perform the goal line of Reserve Bank of India (RBI) and Government of India (GoI) in progressing Monetary Insertion.

·        To perform the goal line of RBI in electrifying of retail portions.

·        To engage banks to course the Aadhaar began interbank trades through a central trading

·        and clearance office.

·        To energize installment of Government benefits like NREGA, Social Security benefits, Handicapped Old Age Annuity, etc. of any Central or State Government frames, using Aadhaar and confirmation thereof as maintained by UIDAI.

·        To empower between operability across banks in a sheltered and ensured about way.

·        To accumulate the foundation for a full extent of Aadhaar enabled Banking organizations.

 

Mechanism

 

The four Aadhaar empowered essential sorts of banking exchanges are as per the following: -

• Cash Withdrawal

• Cash Deposit

• Aadhaar to Aadhaar Funds Transfer

• Balance Enquiry

 

        Dynamically the financial service esteem chain is getting disaggregated and fresher particular members are entering the scene, for example BCs, innovation specialist co-ops, and so forth., which has prompted generous reduction in cost of administration conveyance. Still there are numerous difficulties that banks face in offering money related administrations to poor people, particularly in the remote areas. High last mile cost and mechanical constraints, alongside low income capability of these clients, brings about budgetary overhauling offering to the greater part of them holding a restricted/no benefit potential for banks.

Swaminathan NA (21UCM044)

Surendran M (21UCM043)

III B.Com 'A'