The Aadhaar-enabled Payment System (AePS)In NewsThe Aadhaar-enabled Payment System (AePS) in India has recently faced exploitation by
cybercriminals, leading to unauthorized access to users’ bank accounts.
About The AePS is a bank-led model that allows online interoperable financial transactions at Point of Sale (PoS) or micro-ATMs through the Business Correspondent (BC) of any bank using the Aadhaar authentication.
It was taken up by the
National Payments Corporation of India (NPCI) – a joint initiative of
Reserve Bank of India (RBI) and
Indian Banks’ Association (IBA).
The AePS is meant to provide
easy and secure access to banking services for the poor and marginalized sections of society, especially in rural and remote areas.
It
eliminates the need for OTPs, bank account details, and other financial information.
Transactions can be carried out with
only the bank name, Aadhaar number, and captured fingerprint during Aadhaar enrollment.
