A payment system where the only requirement is the Unique Identification Number through which financial transactions can be made without any need for ATM infrastructure. This system is widely used in thinly populated areas or under banked sections of society. Aadhar card holders can easily transact through AEPS system. This has two major benefits:
1. Customers are not charged for their transactions
2. Banks pay their agents or AEPS White Provider (an amount as commission)
The major services covered under AEPS are cash deposits, withdrawals, balance enquiry, fund transfer and billing. The initiative for AEPS system is taken by the National Payments Corporation of India (NPCI) to encourage cashless transactions throughout the country. The only requirement for using this service is that the customers need to have a bank account which is linked to their Aadhar.
The functioning of AEPS is very simple. The AEPS White provider has to authenticate the Aadhar transaction using the consumer’s biometric information. For customers with multiple accounts, Aadhar must be linked to all the accounts. Anyone can start a small scale business by becoming an AEPS White provider of PayMonk. PayMonk is the fastest growing company and is a renowned company for its Fintech products. Recently, they launched their UPI scheme for making hassle free transactions. The applications are available in Google Play Store.
For more info: http://paymonk.com/agent-partner.html
Source: https://www.bankbazaar.com/ifsc/aadhaar-enabled-payment-system-aeps.html
