Financial Inclusion-Opening of Aadhaar Enabled Bank Accounts (AEBA)

AEBA is latest abbreviation to enter India’s financial system.

AEBA stands for Aadhaar Enabled Bank accounts.

AEBA has received a boost with RBI notification No RBI/2011-12/284 RPCD.CO.FID.BC.No.41 /12.01.011/2011-12, dt.November 30, 2011

The notification can be accessed @

RBI has advised banks to ensure opening of Aadhaar Enabled Bank Accounts (AEBA) of all the beneficiaries including those residing in villages with less than 2000 population, as there are strict timeline attached to the implementation of Electronic Benefit transfer (EBT), for routing MGNREGA wages and social security benefits including proposed cash transfers in respect of subsidies on Kerosene, LPG and Fertilisers.

The genesis of the NOv 30th circular can be traced to RBI’s earlier  Circular  No RPCD.CO.BC.FID No.16/12.01.019/2011-12 dated August 12, 2011 on  the Operational Guidelines on implementation of and its convergence with Financial Inclusion Plan (FIP).

What is EBT?

EBT(Electronic Benefit Transfer)  is a sub-set of of r Financial Inclusion, which facilitates payments to reach  the intended beneficiaries through bank accounts.

EBT accounts are regular no frills Savings Bank accounts, and they will be subject to the

applicable regulatory guidelines.

Though  the majority of AEBA accounts will be No-frills accounts, they  will have to be converted into normal accounts, with full-fledged KYC, once the no-frills norms are breached.

Monitoring of the AEBA accounts would not be much of a problem, if the initial investments in the technology are taken care off by banks.

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