Aadhaar enabled Payment System (AePS)

Digital ID enables biometric authentication for banking transactions through micro-ATMs operated by business correspondents (BCs) in remote and underserved areas. The National Payments Corporation of India (NPCI) launched the Aadhaar Enabled Payment System (AePS) in collaboration with the Unique Identification Authority of India (UIDAI) and banks. AePs allow customers to perform basic banking services, such as cash withdrawals and deposits, balance inquiry, mini statements, and Aadhaar-to-Aadhaar fund transfers. Customers need only their Aadhaar number and biometric authentication, such as fingerprint, without the need for a debit card, PIN, or smartphone. AePS operates through a network of BC equipped with biometric devices and micro-ATMs, which brings banking services to India’s rural and semi-urban populations where traditional bank branches and ATMs are scarce. The system provides bank interoperability that allows customers to access their accounts from any bank at any BC point. In March 2025, AePS recorded 570.72 million transactions, with monthly volumes consistently ranging from 462 million to 618 million from April 2024 to March 2025, which demonstrates sustained adoption.