Imagine being able to handle basic banking tasks without ever needing to visit a bank. That’s the magic of the Aadhaar Enabled Payment System (AEPS). AEPS allows people to use their Aadhaar number and fingerprint to access banking services like cash withdrawals, deposits, balance checks, and money transfers. No need for a debit card or PIN; your fingerprint is your key to accessing your money. AEPS is designed to make banking more accessible, especially for those in rural areas or places where traditional banks are hard to reach. So, how does AEPS work? It connects your Aadhaar number to your bank account, enabling secure and straightforward transactions. When you visit a local shop or an agent with a micro-ATM, you simply provide your Aadhaar number and verify your identity with a fingerprint scan. This process ensures that only you can access your account, making it both safe and convenient. The goal is to make banking easy for everyone, even those who may not be familiar with technology.

Aadhaar enabled payment system or the AePS is a bank-led payment model that allows all Aadhaar card holders to make monetary transactions at micro automated teller machines (ATMs)or point of sale (POS) using a unique identification number (UID). The National Payment Corporation of India (NPCI) took this initiative to promote cashless transactions in India. Their main aim was to authorize people from all sections of the society to access financial and banking services via Aadhaar. The AePS allows users to transfer funds, deposit cash, withdraw money, check account balance, among other features.