Why AePS Debit Facility Is Disabled By NPCI

Aadhaar Enabled Payment System (AePS) is a type of payment system that has been developed by the National Payments Corporation of India (NPCI). AePS Debit Facility allows users to conduct transactions on a micro-ATM by providing their Aadhaar number and biometric information. Individuals who may lack access to traditional banking services will benefit from this system, The design of the system aims to make it user-friendly, secure, and convenient. It also plays a significant role in empowering the underprivileged sections of society by providing them with access to digital financial transactions.

How Does AePS Debit Facility Work?

The process of using AePS involves several steps. First, the user visits a Point of Sale (PoS) or micro ATM that supports AePS and provides their Aadhaar number and biometric details. The PoS or micro ATM verifies the user’s identity using the Aadhaar authentication and authorizes the transaction. The user can then perform various banking services, such as cash withdrawal, balance inquiry, fund transfer, etc., using their Aadhaar-linked bank account. Importantly, the user does not need to share their bank account details or PIN during the transaction, enhancing privacy and security.

Benefits of Using AePS Debit Facility

There are several benefits of using AePS. It is a user-friendly and secure payment method that allows users to access their bank account using their Aadhaar number and biometric authentication. It is interoperable across various banks and enables users to transfer funds between bank accounts. Furthermore, it encourages financial inclusion and serves the underbanked sections of society by providing them with access to banking services and enabling digital financial transactions. It also enhances privacy and security as users do not need to share their bank account details or PIN during the transaction.

Transaction Limits for AePS

The Reserve Bank of India (RBI) sets the transaction limits for AePS. As of the latest update, AEPS allows individuals to withdraw up to ₹10,000 per day from their bank accounts. Each AEPS transaction has a limit of ₹10,000, ensuring that larger withdrawals are split into multiple transactions if necessary. The monthly limit for AEPS transactions is ₹1 lakh, providing flexibility for users over a longer duration. For fund transfers, some banks have implemented a daily limit of ₹50,000 on the total number of transactions.

Checking Bank Balance Using AePS Debit Facility

To check your bank balance using AePS, you need to visit a local banking correspondent that supports AePS. Provide your Aadhaar number and biometric details to them. You then select the transaction type as Balance Enquiry and specify the bank’s name. The PoS or micro ATM will verify your identity using the Aadhaar authentication. Then it will display your bank balance on the screen.

Transaction Cost for AePS Debit Facility

The transaction cost for AePS can vary based on the bank’s discretion. For customers, the transaction cost is typically NIL, meaning you do not need to pay anything to avail of this service. The Merchant or Banking Correspondent may be charged or paid upon the bank’s decision. The cost of an AePS transaction can range up to ₹15 per transaction. The UIDAI has not currently imposed any fees, but it may do so in the future. The bank may charge a fee of up to 1% of the transaction, with a minimum fee of ₹5 and a maximum fee of ₹15. NPCI charges 15 paise to 25 paise for the settlement.

Finding an AePS Center

To find an AePS center near you, you can visit the website of your bank or the NPCI, check with local retailers or businesses, look for Digital Seva Kendras, or use online platforms like Airtel and Pay1.

Eligibility Criteria for AePS

To be eligible for using AePS, you need to have an Aadhaar number issued by UIDAI and ensure that your Aadhaar number is linked to your bank account. And also having completed the Know Your Customer (KYC) process with your bank, and being able to present yourself with your biometrics for Aadhaar authentication.

NPCI guidelines for AePS Debit Facility

According to the National Payments Corporation of India (NPCI) guidelines, banks have been asked to stop AePS services for accounts that have not received any AePS debits in the last 12 months. Additionally, banks have been instructed to immediately disable this service for accounts where the only AePS transaction noticed in the last 12 months has been reported as a fraudulent transaction. Banks should also offer the option to either ‘enable’ or ‘disable’ AePS as a debit mode through multiple modes like mobile banking, branch banking, call centre, etc. If your AePS debit facility has been disabled, it might be due to these guidelines.

How to Enable AePS Debit Facility

If the AePS debit facility has been disabled in your account, you can follow these steps to enable it:

Visit your bank: Go to your local bank branch and request them to enable the AePS debit facility on your account.
Use Online Banking: Log in to your online banking account and look for an option to enable AePS. This option might be located under ‘Services’ or \’Settings’.
Call Customer Service: You can also call your bank’s customer service to enable the AePS debit facility for your account.

Please note that the exact process can vary depending on the bank. Therefore, it’s always a good idea to check with your bank for the most accurate and up-to-date information.

Steps to Take if Encounter Issues with AePS Debit Facility

If you encounter any issues or have concerns about the AePS debit facility, here are some steps you can take:

Contact Your Bank: Reach out to your bank’s customer service for assistance. They can provide guidance and help resolve any issues you may be facing.
Visit Your Local Branch: If possible, visit your local bank branch and speak with a representative. They can provide in-person assistance and help address your concerns.
Check Transaction Status: If a transaction fails, check the status of the transaction. Transaction failures can occur at different levels, so understanding where the failure occurred can help identify the issue.
Report Fraudulent Transactions: If you suspect a transaction is fraudulent, report it to your bank immediately. They can take the necessary steps to secure your account and investigate the issue.
Use Online Banking: Log in to your online banking account to check the status of your transactions. You can manage your AePS in settings.

Remember, it’s always important to keep your Aadhaar and biometric information secure to prevent unauthorized access to your account.

Latest Update About AEPS

The National Payments Corporation of India (NPCI) has taken significant steps to address fraud related to the Aadhaar-enabled Payment System (AePS). Here are the latest updates:

Additional Security Measures:
- NPCI has directed banks to implement mandatory security norms for AePS transactions, similar to the security features used for debit cards.
- Acquirer banks (those providing infrastructure for accepting payments) must enable interoperable AePS cash withdrawals only after conducting Aadhaar-based biometric authentication of business correspondents (BCs) and agents.
- Daily monitoring is in place to identify and prevent misuse.
Discontinuation of AePS Services:
- NPCI recommends discontinuing AePS services for accounts that have not had any AePS debits in the last 12 months by the end of the next month.
- Additionally, banks are instructed to promptly disable AePS services for accounts where the only AePS transaction within the last 12 months is reported as fraudulent.
Explicit Customer Consent:
- NPCI emphasizes obtaining explicit customer consent for enabling or disabling AePS as a debit mode.
- Similar to international card transactions, consent is crucial for AePS services.

Conclusion

In conclusion, AePS is a revolutionary system with the potential to transform the accessibility of banking services, particularly in rural and underprivileged areas. It opens up new possibilities for financial inclusion and empowerment. By leveraging the widespread coverage of Aadhaar and the simplicity of biometric authentication, AePS can bring banking to the doorstep of every Indian.

Frequently Asked Questions (FAQs) about the AePS Debit Facility

What is Aadhaar Enabled Payment System (AePS)?

AePS is a payment service that allows a bank customer to use Aadhaar as their identity to access their Aadhaar enabled bank account. They can perform basic banking transactions like balance inquiry, cash withdrawal, and remittances through a Business Correspondent.

What are the services available under AePS?

The services available under AePS include Cash Withdrawal, Balance Enquiry, Mini Statement, and Aadhaar to Aadhaar Fund Transfer.

What is important for AEPS to work?

The customer looking to avail AePS should mandatorily have a Bank Account with a Bank participating in AEPS. Also, their Aadhaar should be linked to their Bank account, and the transaction is completed using their biometric authentication only.

What happens if a customer enters an incorrect Aadhaar Number or chooses a Bank where they don’t have an account?

If the customer enters an incorrect Aadhaar number/ selects an incorrect bank where they do not have an Aadhaar-linked bank account, the transaction will decline with an appropriate response message.

Does the customer specifically need to register with his Bank to be able to transact through AEPS?

Ideally No, but linking Aadhaar Number with Bank account is a pre-requisite. However, registration process shall be as per the procedures laid down by the Issuer bank providing the service.

Customer has multiple accounts linked to their Aadhaar number in his/her bank. How can they specify the account number from which the transaction needs to be done?

If a customer has multiple accounts linked to his Aadhaar number within the same Bank, AEPS services will work with only the primary account associated with the Aadhaar.

Is there any limit on AEPS Cash Withdrawal and Fund Transfer transactions?

Yes, there are limits on AEPS transactions. As of the latest update, AEPS allows individuals to withdraw up to ₹10,000 per day from their bank accounts. Each AEPS transaction has a limit of ₹10,000.

Is there any age criteria to avail AEPS services? Can a minor above 10 years of age, avail such services? Can a minor below age of 10 years, avail such services?

There is no specific age criteria mentioned for availing AEPS services. However, the customer should have a bank account linked with their Aadhaar. And they should be able to provide their biometrics for authentication.

Customer account has got debited and they have received confirmation from their Bank but the transaction in MATM/CBS could not be completed?

In such cases, the customer should immediately contact their bank or the customer service of the AePS provider.

Where do a customer register a complaint for failed transaction?

Customers can register a complaint for a failed transaction with their bank or the customer service of the AePS provider.

I hope this helps! If you have any other questions, feel free to comment.

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