Cooperative Banks: Digitisation can significantly simplify their banking operations. The Aadhaar-Enabled Payment System (AePS) can be a valuable tool for integrating cooperative banks into the digital banking ecosystem. Through this, banks can extend their services directly to members and customers—right at their doorsteps. This is particularly beneficial for individuals who face challenges in visiting a bank branch. Let’s explore in detail what AePS is and how it functions.
What is AePS and how does it work?
AePS, or the Aadhaar-Enabled Payment System, is a specialised banking facility that allows customers to conduct financial transactions using their Aadhaar number and biometric authentication. This eliminates the need for customers to repeatedly visit a bank branch. The service can be accessed through registered banking agents or micro-ATMs. With this efficient system, customers can perform various tasks, such as cash withdrawals, balance enquiries, and obtaining mini-statements.
What are the benefits for cooperative banks?
Integrating AePS enables cooperative banks to expand their digital banking offerings. The advantages are significant: it involves an affordable licence fee and includes a complimentary three-month access period. Furthermore, banks can easily deliver services to their customers while also saving time. Through banking agents, customers can access services from the comfort of their homes or a nearby location.
How do bank members benefit?
By utilising the AePS facility, cooperative bank members can access banking services using their Aadhaar credentials and biometric authentication. This is especially advantageous for the elderly, those living in rural areas, and individuals residing in remote locations. It is important to note that for the system to work, the customer’s Aadhaar must be linked to their bank account, and the bank itself must be integrated into the AePS network.
How can a cooperative bank initiate the AePS facility?
Cooperative banks considering the implementation of this facility may contact an AePS service provider. Subsequently, they can obtain information regarding terms and conditions related to license fees, transaction volumes, technology systems, and pre-production access.