INTRODUCTION TO DIRECT BENEFIT TRANSFER. Terminologies. DBT: The Direct Benefits Transfer (DBT) programme envisages a switch from the present electronic transfer to bank accounts of the beneficiary to transfer of benefits directly to Aadhaar seeded bank accounts of the beneficiaries.
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Terminologies DBT: The Direct Benefits Transfer (DBT) programme envisages a switch from the present electronic transfer to bank accounts of the beneficiary to transfer of benefits directly to Aadhaar seeded bank accounts of the beneficiaries. Aadhaar Payments Bridge (APB) – Aadhaar Payments Bridge (APB) is a system that facilitates seamless transfer of all welfare scheme payments to beneficiary residents’ Aadhaar Enabled Bank Account (AEBA) Micro-ATM – A standard handheld device for BC-based transactions capable of using UIDAI’s authentication system Aadhaar Enabled Payments System (AEPS) – System that leverages Aadhaar online authentication and enables Aadhaar Enabled Bank Accounts (AEBA) to be operated in anytime-anywhere banking mode through MicroATMs Interoperability Beneficiary can withdraw from BC/CSP of any bank
Direct Benefit Transfer 1111 2222 3333 Enroll for Aadhaar Provide Aadhaar to agencies/bank Aadhaar Enabled Bank Accounts (AEBA) Aadhaar Enabled Payment System (AEPS) Link Aadhaar Aadhaar Payment Bridge (APB) Digitize data Link Aadhaar Open / link AEBA Appoint BCs and roll out AEPS
Preparatory/One-Time Steps • Government Departments: Digitize Beneficiary database and Seed Aadhaar numbers. This will clean up databases and make departments ready to use APB • Banks: Open bank accounts or link existing accounts with Aadhaar number. Populate NPCI’s mapper (Aadhaar No – Bank ID) • NPCI: Maintain the Mapper (for enabling inter-bank transactions)
Aadhaar Enabled Direct Benefit Transfer Government Departments / User Agency Banks Central Mapper / NPCI Resident Ensure digitized/electronic database of beneficiaries All Banks communicate Aadhaar no of all AEBA to Central Mapper Open/Link Aadhaar Enabled Bank Account (AEBA) with any bank of choice Seed Aadhaar to clean up databases and act as financial address Maintain an updated Central Mapper and Aadhaar Payment Bridge (APB) Generate payment advise file – Aadhaar no & amount to be transferred Electronically share file with the Sponsor bank of Department Sponsor Bank posts payment advise file to Central Mapper for all OFF-US transactions Facilitate transfer/ settlement across banks Use Aadhaar authentication (AEPS) or other channels to withdraw money Legends: Receive confirmation from Sponsor bank on transfer status / further action Sponsor Bank updates Department and takes corrective action, if any Update Sponsor Bank of status & failures, if any One-time activities Recurring activities
Advantages of APB to Departments • Removes fakes/ duplicates from the beneficiaries list leading to savings • Eases the entire process for transferring benefits as the Govt. just needs to know the Aadhaar numbers of the beneficiaries without seeding bank account details in every scheme database • Ensures Scalability as each scheme does not require to populate their database with bank account details. APB is a platform • Bank account changes do not affect the transfer systems for various schemes • Resident-centric view of payments under various schemes. This will enable weeding out those people who may be availing LPG as well as Kerosene subsidy and benefits of multiple schemes. • Digital audit trail & Transparency
Advantage of APB to Beneficiaries • No need to open multiple accounts. Just open one and link it to Aadhaar. • Residents more comfortable in disclosing only the Aadhaar number to Govt. Agencies ( e.g. LPG Dealers) rather than bank account details • In case of change in bank account, resident does not need to convey account details or change in bank details to each department that he deals with
Prerequisites for implementation of APB • Sponsor Bank sign-up with NPCI as APB • User Dept forwards the application for participation in APB to NPCI through their Sponsor Bank ( Registration form is signed by both User Dept and Sponsor Bank) • Finalize Scheme Reference number so that it fits into APB file format structure (Limit of 13 digits) • Finalize APB file Format structure along with Sponsor Bank • Beneficiaries must have Core Bank Account. All Banks must ensure migration of accounts to CBS
End to End DBT Process Flow Pension Bank 2. Aadhaar as KYC to open bank account 1111 2222 3333 1111 2222 3333 MGNREGA Aadhaar Payment Bridge Scholarship 3. Aadhaar as a payment address Radha 111122223333 Radha 111122223333 Radha 111122223333 4. Withdraw from any MicroATM at the doorstep 1. Aadhaar to de-duplicate databases xxxxx xxxxx xxxcccc ----- ----- yyyyy ----- ----- ----- ----- 5. End to end auditability and transparency
AEPS -Terminology Issuer Identification Number : The IIN will be a six digit number which will be allotted to a bank upon an application to NPCI from the Bank seeking IIN for AEPS On-US Transaction: An intrabank (On-us) transaction is one where an Aadhaar initiated transaction has effects only in accounts within one and the same Bank and does not necessitate an interbank settlement Off-US Transaction: An interbank (Off-us) transaction is one where there is movement of funds from one Bank to another necessitating an interbank settlement. Issuer Bank: Beneficiary’s Bank Acquirer Bank: BC’s Bank
AEPS The key steps in doing transactions via AEPS are: • Resident provides his/her Aadhaar number, details of financial transaction sought and fingerprint impression at the microATM device. • Digitally signed and encrypted data packets are transferred via Bank Switch to NPCI to UIDAI. • UIDAI processes the authentication request and communicates the outcome in form of Yes/No. • If the authentication response is yes, bank carries out the required core bank authorization process and advises MicroATM on suitable next steps.
AEPS Transactions The four Aadhaar enabled basic types of banking transactions are as follows:- • Cash Withdrawal • Cash Deposit • Aadhaar to Aadhaar Funds Transfer • Balance Enquiry
Convenient cash withdrawal Authentication Resident - Ram UID 2563 8564 4663 8. Info- IVRS/ SMS 6. Debit 4. Authenticate and execute Ram’s bank a/c NPCI switch 1. Withdrawal request 9. Cash 7. Credit TransferMoney From UID 2653 8564 4663 To UID 7233 5968 3094 Amount 300 3.NPCI request 2. Money transfer instruction + biometrics BC (Kirana, SHG, PO etc)) With Micro-ATM UID: 7233 5968 3094 BC’s bank a/c
Benefits of AEPS • Beneficiary can receive money at doorstep • Interoperable system ensures that customer is not tied to one bank’s BC • No need for banks to separately capture biometrics and develop their own biometric and de-duplication systems • AEPS is not a substitute for Authentication as beneficiary can withdraw money from any mode
Prerequisites for AEPS • Beneficiaries must be enrolled for UID and in receipt of UID • Beneficiary must have an Aadhaar enabled bank account • User (Welfare) Dept must seed its database with UID • Beneficiary’s bank account database must be seeded with UID • Ensuring STQC certification/UIDAI Compliant of present MicroATM Devices • Organizing BFD Camps for beneficiaries to identify Best finger for authentication • Train CSP/BC to operate MicroATMs • Conduct test file transfer to selected sample of beneficiaries i.e. transfer of funds from User Dept to actual beneficiary through APB (Aadhaar Payment Bridge System). • Conduct test of Balance Enquiry for selected sample of beneficiaries to check End to End connectivity i.e. Connectivity between MicroATM, Bank Switch & UIDAI needs to be verified.
AEPS Checklist • Banks need to sign the Authentication User Agency (AUA) agreement with UIDAI. Upon signing they shall be given the AUA code and license keys. • Banks need to have a Financial Inclusion switch/ server or integrate the FI server with their ATM switch in such a way that all AEPS transactions are real time and in the messaging format specified in our Interface specifications • Banks must ensure that all their Financial Inclusion Accounts in CBS (to enable multiple channel access Mobile, ATM & MicroATM managed by BCs) • Banks need to have Identify a distinct field in CBS for Aadhaar number seeding (alternatively mapping to be kept outside CBS for account resolution) • MicroATM Certification by STQC- http://www.stqc.gov.in/sites/upload_files/stqc/files/POS-Device-Certification-ver-0.6.pdf. • Please refer to http://www.npci.org.in/documents/AEPS_On_Boarding.pdf