What is AEPS? Complete Guide to Aadhaar Enabled Payment System for Rural India

What Is AEPS?

AEPS (Aadhaar Enabled Payment System) is an NPCI-built payment platform that allows any bank customer to perform basic banking transactions at a micro-ATM or banking correspondent point, using only their Aadhaar number and a biometric fingerprint — no debit card, mobile app, or internet connection on the customer's end required.

AEPS bridges the gap for the 190+ million unbanked and underbanked adults in rural India who have a Jan Dhan or savings account but struggle with card-based or app-based banking due to literacy or connectivity barriers.

Services Available via AEPS

• Cash Withdrawal — Withdraw from any bank account using Aadhaar + fingerprint.
• Cash Deposit — Credit cash to a linked Aadhaar-seeded bank account.
• Balance Enquiry — Check account balance without a passbook or ATM.
• Mini Statement — View the last 5–10 transactions.
• Aadhaar-to-Aadhaar Fund Transfer — Transfer money between two Aadhaar-linked bank accounts.
• BHIM Aadhaar Pay (Merchant) — Merchants can collect payments from customers using the customer's Aadhaar fingerprint scan.

How AEPS Works — Step by Step

1. Customer visits a CSP/BC agent with a micro-ATM and STQC-certified biometric scanner.
2. Customer provides their 12-digit Aadhaar number and selects the bank name.
3. Customer scans their fingerprint on the biometric device (Mantra MFS 110 or Morpho).
4. The NPCI UIDAI gateway authenticates the fingerprint against the UIDAI database in under 2 seconds.
5. Transaction is processed and cash is dispensed or credited instantly.

Required Hardware for AEPS

To offer AEPS services as a BC agent, you need:

• A STQC-certified biometric fingerprint scanner — Mantra MFS 110, Mantra MFS 100, or Morpho MSO 1300 E3.
• A micro-ATM device — Android smartphone or tablet with the bank/aggregator's AEPS app.
• A stable internet connection (3G/4G or broadband for the agent, not the customer).
• RD Service installed and registered for the biometric device.

AEPS Transaction Limits

Per RBI and NPCI guidelines: maximum ₹10,000 per cash withdrawal transaction, ₹50,000 per day per customer per bank, and a maximum of 5 transactions per day per Aadhaar. These limits exist to prevent fraud and protect unbanked beneficiaries.