Aadhaar based payment system is playing a vital role in our daily life. Here we will discuss what the logic behind the Aadhaar payment system was and how you can’t be apart from this payment system now a day and how it providing benefits to you in daily life.
So without wasting time, I come to the point.
In 2009 Indian government started a project in which they collect all legal documents detail to us and convert it into a unique Identity. They provide us a unique identity number for individuals which is known as Aadhaar card number and document named Aadhaar card.
Further government planned to use this entire Aadhaar database for financial transactions. They linked individual bank accounts into their Aadhaar card so that they can monitor payment details by Aadhaar card.
Initial steps in the way of Digital future, the government started UPI (Unified Payment Interface) and BHIM (Bharat Interface for Money) which facilitate online payment directly using smartphones. On the other side, the Government started Aadhaar enabled payment system for those who are unable to use payment through mobile.
What is Aadhaar Enabled Payment System?
AEPS stands for Aadhaar enabled payment system. It is a new age of payment transaction in which a bank customer can use basic banking services through the Aadhaar card. To use AEPS service, a bank customer’s bank account must be linked with Aadhaar card. It was the initiative by the government to push digital payment in place of cash transactions. Indian population support and appreciate this first step towards digital India dream.
What are the Types of Aadhaar Based Payment System?
Basically there are two types of Aadhaar based payment systems. The first one is the Aadhaar Bridge Payment System (ABPS) which is used basically by the government to provide special facilities and subsidy to the beneficiary.
On the other hand, AEPS (Aadhaar enabled Payment System) was started to use by the bank correspondents to accept the payment. An AEPS service provider can use Aadhaar enabled payment system to offer different AEPS services through AEPS software. E-Mitra and bank correspondent use Aadhaar payment system to offer transaction services to customers.
Keep Reading: Who Control Aadhaar Based Payment