Aadhar Enabled Payment System

Aadhaar Payment Bridge System (APBS)

Introduction

Aadhaar Payment Bridge System is a payment service offered by the National Payments Corporation of India (NPCI) using the Aadhaar‟ number, issued by the Unique Identification Authority of India (UIDAI).

APBS will be used for credit transactions for Government/ Government agency disbursements. Therefore, these Procedural Guidelines will be used only for APBS – Credit.

Objectives of APBS

APBS has the following objectives.

  • To sub-serve the goal of Government of India (GOI) and Reserve Bank of India (RBI) in furthering Financial Inclusion by way of processing government disbursement using Aadhaar number.
  • To promote electronification of retail payments.
  • To support various Schemes like NREGA, Social Security Pension, Handicapped Old Age Pension etc. of any Central or State Government bodies, to send financial details to the beneficiary using Aadhaar number.

Brief Features of APBS

The following are the key features of the proposed solution

  • APBS will be accessed through secure mechanism.
  • Routing of Aadhaar based credit transaction files will be done on the basis of Institute Identification Number (IIN), provided to the participant banks.
  • Sponsor Banks will upload Aadhaar-based credit transaction files.
  • NPCI will process the uploaded files, prepare drawee bank files and generate settlement file.
  • The settlement file will be posted to banks accounts with RBI – either by NPCI directly or through a settlement agency till the time NPCI gets its RTGS membership.
  • Destination banks can download the incoming files for credit processing after the settlement file has been successfully processed.
  • APBS will allow the destination banks to send return and success status files.
  • Sponsor Banks will receive the status files and can update customers based on the same on the fate of transactions.

AEPS in Kerala Gramin Bank

KGB is a member of APBS. Since inception KGB has received inward remittance of about Rs. 40 cr under Aadhaar Payment Bridge System

Aadhar Enabled Payment System (AEPS)

Background

AEPS is a bank led model which allows online interoperable financial inclusion transaction at PoS (Micro-ATM) through the Business correspondent of any bank using the Aadhaar authentication.

The four Aadhaar enabled basic types of banking transactions are as follows:-

  • Balance Enquiry
  • Cash Withdrawal
  • Cash Deposit
  • Aadhaar to Aadhaar Funds Transfer

The only inputs require_onced for a customer to do a transaction under this scenario are:-

  • IIN (Identifying the Bank to which the customer is associated)
  • Aadhaar Number
  • Fingerprint captured during their enrollment

Objectives

  • To empower  a bank customer to use  Aadhaar as his/her identity  to access his/ her respective Aadhaar enabled bank account and  perform basic banking transactions like balance enquiry, Cash  deposit, cash withdrawal,  remittances that are intrabank or interbank in nature,  through a Business Correspondent.
  • To sub-serve the goal of Government of India (GoI) and Reserve Bank of India (RBI) in furthering Financial Inclusion.
  • To sub-serve the goal of RBI in electronification of retail payments.
  • To enable banks to route the Aadhaar initiated interbank transactions through a central switching and clearing agency.
  • To facilitate disbursements of Government entitlements like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies, using Aadhaar and authentication thereof as supported by UIDAI.
  • To facilitate inter-operability across banks in a safe and secured manner.
  • To build the foundation for a full range of Aadhaar enabled Banking services.

Services Offered by AEPS

  • Balance Enquiry
  • Cash Withdrawal
  • Cash Deposit
  • Aadhaar to Aadhaar Fund Transfer
  • Gateway Authentication Services

AEPS – Status in KGB

KGB has successfully tested AEPs –on us transactions and shortly will complete testing of AEPS – Off Us transactions – first by any RRB in the country.