AEPS full form in Banking is Aadhaar Enabled Payment System, a payment mode based on the distinctive ID number. Also, it enables the holder of the Aadhaar card to conduct financial transactions through Aadhaar-based authentication. The AEPS system allows the user to make payments, transfer funds, make withdrawals, deposit cash, and enquire about bank balances.
It offers you to transact without a checkbook or ATM; All you have to do is give your registered mobile number. The system relies on Aadhaar data for authentication.
What are the benefits of AEPS?
Following are some of the notable benefits of using the AEPS system:
- Aadhaar card holders can deposit the amount, pay money, and get check balances and mini statements.
- It is compatible with Micro-ATM, which means you can carry it anywhere. Another benefit, you can deduct an amount in remote areas with great ease.
- There is no need for a debit card or signature.
- Businesses, firms, and even shopkeepers can use it to receive payments.
- Banking correspondents can arrive at the distant rural place with the micro POS.
- There is no risk of forging fingerprints, making it one of the fast and safe modes of collecting payment.