Page 33 - Implementation of Secure Authentication Technologies for Digital Financial Services

• Fingerprint the benefits reach the intended beneficiaries. This
• Aadhaar number of beneficiary (only in case of benefit has an even greater ramification as more
Fund Transfer) and more social security programs are moving from
in-kind to in-cash subsidies.
The key steps in doing transactions via AEPS are:
6.5.1 APB Process Steps
• The person provides his/her Aadhaar number, The key steps in posting payments via APB are:
bank name; details of financial transaction sought
and fingerprint impression at the microATM • Service delivery agency that needs to make pay-
device. ments to its beneficiaries (such as wages, schol-
• Digitally signed and encrypted data packets are arships disbursement, old age pension etc.)
transferred via bank switch to NPCI to UIDAI for provides APB file containing details of Aadhaar
user authentication. number, welfare scheme reference number and
• UIDAI processes the authentication request and the amount to be paid to its bank (referred to as a
communicates the outcome in form of Yes/No. sponsor bank).
• If the authentication response is Yes, the bank car- • Sponsor bank adds bank’s Institute Identification
ries out the required authorization process and Number (IIN) provided by NPCI to participant
advises microATM on suitable next steps. banks to the APB file and uploads onto NPCI serv-
er.
The Aadhaar Payments Bridge (APB) is a repository of • NPCI processes uploaded files, prepares benefi-
Aadhaar number of residents and their primary bank ciary bank files and generates settlement file
account number used for receiving all social security • Settlement file is posted to bank accounts with
and entitlement payments from various government Reserve Bank of India.
agencies. It requires using Aadhaar number as the • Destination banks can download the incoming
primary key for all entitlement payments. This would files for credit processing after the settlement file
maintain the integrity of the system and ensure that has been processed.

Figure 20 – Aaadhaar Payments Bridge Process

Destination
Bank 1 Switch Bank 1 CBS
NPCI
(Central
Infrastructure
Originator 1 Core Engine)
(MGNREGA Bank 2 Switch Destination
Payments) Bank 2 CBS

NPCI
Originator 1 (Central
(Scholarships Sponsor Bank Infrastructure
Disbursement) File Based
Mechanism)

Originator 1
(Old Age Pensions)

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