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Aadhaar Enabled Payment System- Everything You Should Know About It

AePS or Aadhaar enabled payment system is a payment mechanism through which an Aadhaar cardholder can perform banking transactions. It is an initiative that empowers all the sections of society by letting them perform banking transactions through an Aadhaar card. To complete the transaction, the Aadhaar card holder is required to submit his/her biometric information at PoS or micro ATMs. The transaction will take place through the bank account which is linked with the Aadhaar card.

In this blog, we will discuss AePS in detail along with its benefits and how to use it.

What is AePS?

Aadhaar enabled payment system is a facility developed by the National Payments Corporation of India. The facility allows users to make transactions on a micro-ATM just by providing biometric information and an Aadhaar number. Following are the details of AePS-

  • Just like a debit/credit card transaction, AePS is a mechanism that enables an Aadhaar card holder to make transactions through an Aadhaar-linked bank account
  • The completion of the transaction takes place by submitting the Aadhaar card number and biometric details at Point of Sale (PoS) or at micro ATMs through the business correspondent of any bank using Aadhaar authentication
  • The biometric data can be iris or fingerprint scan
  • Users are not required to provide their bank account details to complete the transaction
  • AePS allows users to transfer funds from one bank account to another
  • The transaction made through AePS is safe and secure as it is mandatory for the users to submit their biometrics in order to complete the transaction

What are the Benefits of AePS or Aadhaar Enabled Payment System?

Following are the benefits of AePS for all the sections of the society- 

  • Aadhaar enabled payment system is easy to use
  • It requires one to submit biometric data and Aadhaar card number
  • It empowers the underprivileged section of the society
  • Users are not required to provide their bank details to complete the transaction
  • It makes it easy for users to access their bank accounts through Aadhaar authentication
  • AePS is completely safe as one needs to submit biometric data and Aadhaar number
  • Micro PoS machines can be taken to remote villages to let users perform transactions easily

Features of AePS

Listed below are the main features of an AePS facility- 

  • The transaction amount will only be deducted from the Aadhaar linked bank account
  • The mechanism helps an Aadhaar card holder to perform basic banking transactions like cash deposit, intrabank to interbank fund transfer, cash withdrawal, balance enquiry, and obtain a mini bank statement through banking correspondent

What is required to use the AePS facility?

Following are the must-have requirements to use the AePS facility- 

  • An Aadhaar card should be linked with the bank account
  • Aadhaar number 
  •  Fingerprint biometric of the Aadhaar card holder
  • Micro ATM
Read More: How to Verify an Aadhaar Mobile Number

How to use the AePS facility?

An Aadhaar card holder with a linked bank account can use the AePS facility to make transactions effortlessly. All that he/she is required to do is to follow the given instructions-

  • Visit the banking correspondent of your area
  • Enter Aadhaar number in the PoS machine
  • Choose the type of transaction and enter bank name
  • Enter the amount to make the transaction
  • Next, provide your biometrics to confirm the payment 
  • Upon completion of the transaction, a receipt will be provided


  • A banking correspondent is an intermediary who is appointed by the bank itself to provide banking services to the places where there is no bank branch

Things to keep in mind while using AePS

Keep the following things in mind when using the AePS facility- 

  • It is mandatory to link a bank account with an Aadhaar number to avail AePS facility
  • PIN or OTP is required to complete the transaction
  • In case of having multiple accounts linked with Aadhaar, only the primary account can be used to make transactions
  • Only Aadhaar linked bank account can be used to avail this facility

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