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AEPS emerges as UPI for rural India
July 28, 2023
Aadhaar-enabled Payment System (AEPS) has revolutionized the financial landscape in rural India, acting as a transformative tool that bridges the gap between traditional banking services and the previously unbanked population.
Launched in 2016, AEPS has quickly gained popularity and currently accounts for nearly 40 percent of the daily Aadhaar authentications, which amount to seven to eight crore. According to another report, AEPS has enabled financial inclusion for those at the bottom of the income pyramid, with 219.3 million last-mile banking transactions facilitated in March via the network of
micro ATMs.
micro ATMs.
AEPS aims to offer essential banking services to underbanked rural citizens, eliminating the need for people to travel long distances to access banking facilities. By leveraging biometric authentication through Aadhaar, people in remote locations can conveniently perform various transactions, including deposits, withdrawals, and balance inquiries, which can be conducted using Point of Sale (PoS) machines equipped with biometric authentication technology.
Reports suggest 14.19 lakh micro ATMs have been deployed across the country till December 2022 in remote locations which were previously not covered by the traditional banking system. These micro ATMs function as banking touchpoints, allowing individuals to carry out financial transactions without needing a physical bank branch. It has been particularly beneficial in areas where the accessibility of banking services was challenging.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/