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Figure 19 – Aadhaar Enabled Payment System Transactions

ification process has a possibility of impacting a Corporation of India (NPCI) to banks, financial insti-
subject's information privacy, since this process tutions using Aadhaar. AEPS is a bank led model,
requires both biometric reference and identity ref- which allows online financial inclusion transaction at
erence. The identification process requires exhaus- micro-ATM through the business correspondent of
tive search of enrolment database. So, this also any bank using the Aadhaar authentication. This sys-
has a possibility of impacting on subject's physical tem is designed to handle both ONUS and OFFUS
privacy. Verification is generally considered to be requests seamlessly in an effective way by enabling
less privacy intrusive than identification. In Aad- authentication gateway for all Aadhaar linked
haar system verification is done via online authen- account holders.
tication having only a “yes/no” answer. AEPS empowers the marginalised and excluded
segments to conduct financial transactions (credit,
UIDAI has partnered with various stakeholders includ- debit, remittances, balance enquiry, etc.) through
ing Reserve Bank of India (RBI), National Payments microATMs deployed by banks in their villages. Four
Corporation of India (NPCI), and banks to develop types of transactions are supported by AEPS:
two key platforms:
• Balance Enquiry
• Aadhaar Payments Bridge (APB) – A system that • Cash Withdrawal
facilitates seamless transfer of all welfare scheme • Cash Deposit
payments to beneficiary residents' Aadhaar • Fund Transfer
Enabled Bank Account (AEBA). • Aadhaar Pay/Purchase
• Aadhaar Enabled Payment System (AEPS) – A • Mini Statement
system that leverages Aadhaar online authentica- • Aadhaar Status (Bank Linked) through AePS
tion and enables AEBAs to be operated in any-
time-anywhere banking mode by the marginal- To make an AEPS, the following information needs
ized d financially excluded segments of society to be supplied:
through microATMs.
• Transaction Type
Aadhaar Enabled Payment System (AEPS) is a • Aadhaar number,
payment service offered by the National Payments • Bank’s Institute Identification Number (IIN) ,
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30 Implementation of Secure Authentication Technologies for Digital Financial Services