APBS and AEPS are two sides of a single coin


The ‘Aadhaar Number’, holders can receive funds via the APBS (Aadhaar Payment Bridge System). Next, the moot question is to how they can withdraw the funds. Here, AEPS (Aadhaar Enabled Payment System) comes into play.

It is important for Banks on the ABPS network, also are ready for the AEPS, otherwise it might lead to customer complaints.

AEPS is offered by NPCI, and is based on the ‘Aadhaar number’.  Any resident of India holding an Aadhaar number and having a bank account may be a part of the AEPS.

The success of AEPS rests on the availability of large number of Micro ATM’s and ATM’s equipped with Biometric authentication facilities.

As the numbers of ATM’s in rural areas are less, it is expected that BC’s will step in to service the population.

Business Correspondent (BC) is an approved Bank Agent providing basic banking service using a MicroATM (terminal) to any bank customer wishing to avail their bank BC service.

In the short run, BC’s can service only their bank customers. In the long run, it is expected that BC’s will be able to service any bank customer. The back-end integration is taking place.


In the initial stage, NPCI will be offering 4 types of transaction in AEPS. They are:

  1. Balance Enquiry
  2. Cash Withdrawal
  3. Cash Deposit
  4. Aadhaar to Aadhaar Fund Transfer


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