Strengthening AePS Ecosystem: RBI’s Enhanced Due Diligence Framework

We explore the AEPS ecosystem with AEPS touch operators and provide the guidance of RBI for AEPS transactions secure and accessible for all platforms and locations. Mainly it is used for rural areas or unbanking areas.

Understand AEPS Ecosystem

AEPS ecosystem refers to the combination of all networks of a system, process and participants in an AEPS(Aadhaar Enabled Payment System).AEPS is an online system introduced by NPCI in January 2011. AEPS is a system used for transferring online cash and withdrawal cash through aadhaar linked bank account. APES ecosystem aims to provide banking service in rural areas and unbanking population by enabling aadhaar based authentication for financial services to promote online transaction.The AEPS ecosystem makes bank transactions secure, safe and accessible usually for remote areas. The AEPS ecosystem requires many participants that makes our AEPS transaction more effective and secure.

Key Participants of AEPS Ecosystem

Following are the key participants for AEPS ecosystem or aadhar based transaction:

1. AEPs touchpoint operator: These are individual or BC’s (Bank Correspondents) act as physical point of AEPS service. They facilitate AEPS transactions like cash withdrawal , cash deposit etc.
2. Acquiring Bank: These banks provide the infrastructure or tools required for AEPs services. Acquiring Banks connects a business or operator to a network for secure online apes transactions.
3. Issuing Bank: These banks provide the account for the customer that linked with their bank account. It gives the ability to make transactions using your money.
4. NPCI: It stands for National payment corporation of India and it provides the secure AEPS transaction or other payment transactions.
5. Aadhaar Authentication Framework: The aadhar system is managed by UIDAI ( Unique identification of India) , allows users to authenticates their identification using biometrics data, which is mandatory for AEPs transactions

AEPS and AEPS touch Operator:

AEPS means aadhar-enabled payment system. It is a model launched by the National Payment Corporation of India. The facility of aadhar-to-aadhar functionalities, cash deposit, balance enquiry, and cash withdrawal is issued by AEPS. According to its target, Digital India makes AEPS a cashless transaction. AEPS is the bank-model that allows all customers to perform financial transactions using their adhar number. AEPS service requires only aadhar number and your finger authentication, and you provide aadhar number that is linked with your bank account. In the future AEPS service is mainly used for all online transactions. It uses the Micro-ATM for AEPs transactions.

AEPS touch operator is an individual or Bank correspondent (BC’s). Operators help people use their AEPS transaction, bank service usually helps in rural areas or unbanking population. These operators used acquiring banks that provided infrastructure or tools required for using services. They help to reduce the bridge gap between the traditional banking and underserved communities to enhance the financial services.

Service offered by AEPS:

Following are services offered by AEPS:

1. Cash Deposit: APES provides cash deposit form existing account through biometric authentication and bank account linked with UID(Aadhar Card).
2. Cash Withdrawal: Cash withdrawal is offered by using a bank account through biometric authentication and bank account linked to your Aadhaar Card.
3. E- KYC: E- KYC refers to Electronic Know Your Customer. It is used for proving the authenticity of a customer by using the Aadhaar number and biometric details.
4. Balance Enquiry: AEPS offered balance enquiry of their account using biometric authentication.
5. Fund Transfer(Adhar to Adhar): Money can transfer between two adhar linked accounts. It is most suitable for those people who have limited access to traditional bank accounts.
6. Mini Statement: Customers can show their recent transaction to monitor recent activity.
7. Bill payment: Customers can pay bills such as electricity bill, Gas bill etc from aadhar linked bank account using biometric authentication.
8. Micro ATM service:Customers can use APES service as Micro ATM where banking performs transactions like withdrawal, deposit on behalf of banks.
9. Aadhaar Seeding Status: We check our Aadhaar number linked with bank account, mobile number or other services.
10. Tokenization: Tokenization is used for protecting our personal identification by unique code.

    New RBI Guidelines On Due Diligence For AePS Operators

    RBI(Reserve Bank of India) Provides many several proposal for securing AEPS service and aimed to monitoring process for AEPs touchpoint operator:

    1. Onboarding Process:
    1. Single Acquiring Bank: Each AePS touchpoint operator can only be attached by one acquiring bank. It is a secure, easy and accessible apes payment system.
    2. KYC Update: Operators who have not performed any financial transactions for six months will need to undergo a KYC (Know Your Customer) update before resuming operations. This ensures that only active and verified operators are facilitating transactions.
    2. Ongoing Monitoring
    1. Due Diligence by Banks: Banks must carry out ongoing due diligence for all AePS touchpoint operators they onboard. This includes regular updates and verifications to prevent fraud.
    2. Transaction Limits: Transaction limits will be set based on the risk profile of each operator, ensuring that their activities align with their operational scope and risk assessment.
    3. Location Consistency: Transactions conducted by AePS touchpoint operators must be consistent with their declared location of operation and their risk profile. This measure aims to detect and prevent suspicious activities.
    

    How JustPayOn makes AEPS easy

    JustPayOn provide secure and safe online transaction through AEPS service. This platform provides biometric authentication linked adhar card with their existing bank account. And JustPayOn provides AEPS service with withdrawal cash , deposit cash, check bank balance and paying online bill through biometric transaction.

    JustPayOn is service provider that makes our AEPS transaction secure. It not required any extra charge for online transaction. It provides affordable and accessible digital payment. It makes AEPS as a cashless transaction in future. So you can use JustPayOn for secure and safe AEPS transaction.

    Conclusion

    AEPS makes Cashless transaction in future trends. It makes our financial transaction secured and safe and it provide user friendly user interface that easily interact with the customer in anytime and anywhere. AEPS service does not provide any OTP system or any duplicity for any transaction. It minimizes the risk of cyber fraud and cyber crime. In digital India AEPS transaction makes most efficient platform for financial inclusion, cashless economy etc. APES integration technology increased economic growth and development.