AEPS - Guide to Start Mini Bank at Low Investment

What is AEPS?

AEPS full form is aadhaar enabled payment system. This is a bank led model which allows bank customers to use all basic banking services by using Aadhaar card number and finger print authentication.

To use AEPS service, bank customer's bank account must be linked with Aadhaar card. If any one has more then one accounts, he/she can use AEPS service from primary account.

AEPS is a new age of payment system which encourage digital payment or cashless society in India. Now people don't need to visit bank or ATM to use banking & financial services. Now they can perform all basic banking services at near-by AEPS merchant store.

If talk about present scenario, most of the people are using Aadhar card cash withdrawal in semi-urban and rural areas.

But here a question arise that what was the actual need of AEPS?

What was the Key Motive Behind the AEPS?

Problem is the mother of new Invention. There are ample of rural and semi-urban areas in India where people still not using banking & financial services due to lack of banks and ATMs. Almost 74% of people lives in rural areas in India and most of them was not using banking and financial services.

It means a big part of India's population was untouched to using banking service which means they are also not helping in economy. After this long conversation, first Indian government try to penetrate more branches of banks and ATM but that was very expensive and time consuming process.

To eliminate this problem and keep everything in mind, NPCI and RBI started AEPS in 2016 as joint project to bring all the sections of society into same financial platform.

NPCI (National Payment Corporation of India ) instructed all the banks and financial institutes to allow to use all banking services through Aadhaar card. Now AEPS service is working excellently all over India under surveillance of NPCI.

Keep Reading: Google AEPS