The AEPS AP1

1. The AEPS API (Aadhaar Enabled Payment System API) is a digital interface that facilitates banking transactions using an individual’s Aadhaar number and biometric authentication. Designed by the National Payments Corporation of India (NPCI), AEPS plays a critical role in enabling last-mile banking services, especially for the unbanked and underbanked segments of society. AEPS APIs allow developers, fintech platforms, and banking correspondents to integrate secure Aadhaar-based banking services into their applications or point-of-sale (POS) systems. Purpose and Significance AEPS was developed to promote financial inclusion in India by allowing users to access basic banking services without needing a physical bank branch, debit card, or smartphone. By using Aadhaar-linked biometric authentication, users can perform transactions such as cash withdrawals, balance inquiries, fund transfers, mini statements, and more. The AEPS API enables third-party platforms to offer these services in real-time, securely and efficiently. It bridges the gap between rural populations and formal banking services, making banking accessible through common service centers (CSCs), micro-ATMs, and retail outlets. Core Features 1.Biometric Authentication: AEPS APIs authenticate transactions using fingerprint or iris scans, matched against the UIDAI Aadhaar database. 2.Bank Interoperability: Customers can access their Aadhaar-linked bank accounts across banks using the same API infrastructure. 3.Real-time Transactions: All transactions are processed in real-time, offering immediate confirmation to users and agents. 4.Multiple Transaction Types: o Cash Withdrawal o Balance Inquiry o Mini Statement oAadhaar to Aadhaar Fund Transfer oBest Finger Detection (BFD) 5.Security and Compliance: All AEPS APIs follow strict compliance with UIDAI and NPCI security guidelines, ensuring encrypted and secure transactions.

2. How AEPS API Works The process begins with the user providing their Aadhaar number and selecting a bank linked with their Aadhaar. The system then prompts the user for biometric authentication using a certified fingerprint scanner or iris scanner. Once verified, the transaction is processed through the NPCI network and routed to the appropriate bank. The AEPS API manages all backend communications between the application, NPCI, UIDAI, and the bank, ensuring seamless integration and accurate transaction handling. Use Cases • Retailers and Kirana Stores: Act as mini bank branches offering AEPS services. • Common Service Centers (CSCs): Provide AEPS-based banking in rural areas. • Fintech Applications: Apps offering banking-as-a-service integrate AEPS APIs to serve remote users. • Government Subsidy Disbursements: AEPS enables direct benefit transfers (DBT) for government schemes using Aadhaar authentication. Benefits • Financial Inclusion: Brings banking to remote and underserved areas. • User Convenience: No need for bank cards or smartphones—just Aadhaar and biometrics. • Revenue for Agents: Agents and retailers earn commissions for providing AEPS services. • Secure Transactions: AEPS is highly secure due to biometric-based identity verification.