AEPS (Aadhaar Enabled Payment System) lets a bank customer do basic banking transactions at a retailer point using only their Aadhaar number and fingerprint. There is no card to carry and no PIN to remember, which makes banking easy for people far from a branch or an ATM. This guide explains what AEPS is, the services it offers, how a transaction works and how a retailer can join. Uttra Vistara helps retailers set up and run AEPS with training and support.
What is AEPS?
AEPS is a bank-led payment model that works through the Aadhaar number linked to a customer’s bank account. The customer gives their Aadhaar number, selects their bank and authenticates with a fingerprint on a biometric device. The bank verifies the identity and completes the transaction.
For a retailer, AEPS turns a small shop into a mini banking point that serves the neighbourhood. For customers, it means cash and balance information close to home. For the community, it widens access to banking in places where branches are far away.
Key highlights
- Works with bank accounts linked to Aadhaar
- Fingerprint authentication, no card or PIN
- Services offered at neighbourhood retail points
- Instant confirmation and receipt for each transaction
- Interoperable across participating banks
- Backed by training and support for retailers
What it covers
An AEPS can support many needs. Here are the situations where it helps most.
Cash Withdrawal
Customers withdraw cash from their own account at a nearby retail point.
Balance Enquiry
Check the account balance instantly with a fingerprint.
Mini Statement
View the most recent transactions of the account.
Aadhaar Pay
Pay a merchant directly using Aadhaar authentication.
Interoperable Banking
Serve customers of many participating banks from one device.
Doorstep Access
Bring everyday banking to villages, towns and neighbourhoods.
Why choose it
Here is what makes this service valuable for customers, retailers and businesses.
Key benefits at a glance
No card, no PIN
The customer’s fingerprint is the key, so there is nothing to lose or forget.
Banking nearby
Customers save travel to a branch or ATM.
Secure by design
Biometric authentication and bank verification protect every transaction.
Quick transactions
Most transactions complete in moments, with an instant receipt.
More footfall for retailers
AEPS brings regular customers to your shop.
Training and support
We help new retailers learn the process and resolve queries.
AEPS services in detail
A closer look at the main services, with a simple example of how each one works.
Cash Withdrawal
The customer withdraws cash from their own bank account at a retail point, using Aadhaar and fingerprint.
How it works in real life
- The customer shares their Aadhaar number and chooses their bank.
- They place a finger on the biometric device for verification.
- On approval, the retailer hands over the cash and shares the receipt.
- Own account, own money
- Instant bank confirmation
- Receipt for every transaction
Best for: Customers who need cash without visiting a branch.
Balance Enquiry & Mini Statement
Customers check their balance and view recent transactions without needing a card or a mobile app.
How it works in real life
- The customer authenticates with their fingerprint.
- The bank returns the balance or the recent entries.
- The result is shown on screen and can be printed or shared.
- Quick and simple
- No app needed
- Good for everyday checks
Best for: Customers who want to stay on top of their account.
Aadhaar Pay
A merchant accepts payment from a customer who authenticates with Aadhaar and fingerprint.
How it works in real life
- The merchant enters the payment details on the device.
- The customer authenticates with their fingerprint.
- The payment moves from the customer’s account to the merchant.
- No card or phone needed
- Direct bank-to-bank movement
- Suitable for small merchants
Best for: Merchants who want an easy payment option.
AEPS for Retailers
Retailers get onboarded, receive a device and training, and start serving customers in their area.
How it works in real life
- You apply and complete the verification.
- You receive the device, login and training.
- You start serving customers and track your transactions.
- Guided onboarding
- Training and helpdesk
- Transaction reports
Best for: Shop owners who want to offer banking services.
Availability and features depend on the participating banks and the plan you choose. Our team confirms everything before you start.
Who can join and documents required
See who can use this service and keep the listed documents ready to get started without delay.
Who needs it
- Shop ownersKirana, medical, mobile, stationery and similar shops
- Service pointsCSC centres, cyber cafes and photocopy shops
- IndividualsEntrepreneurs with a fixed place of business
- EquipmentA smartphone or computer with internet and a supported fingerprint device
- VerificationSuccessful KYC and background checks as required
Documents required
- KYC: Aadhaar and PAN of the applicant
- Photograph of the applicant
- Shop address proof and photograph
- Shop licence or business proof, if available
- Bank account details
- Mobile number and email
Who needs it
- Bank accountAn account at a participating bank
- Aadhaar linkAadhaar number linked to the bank account
- BiometricFingerprint enrolled with Aadhaar
- Mobile numberLinked to the account for alerts, as per bank rules
- AwarenessKnowing their Aadhaar number or having it handy
Documents required
- Aadhaar number
- Bank name
- Fingerprint for authentication
- Mobile number linked to the account, if asked
The exact list depends on your profile and plan. Our team shares a precise checklist and helps you complete it online.
How an AEPS transaction works
Every AEPS transaction follows a simple five-step flow.
- 1
Enter Aadhaar
The retailer enters the customer’s Aadhaar number on the device or app.
- 2
Select the bank
The customer chooses the bank in which their Aadhaar is linked.
- 3
Scan the fingerprint
The customer places a finger on the biometric scanner to authenticate.
- 4
Choose the transaction
Cash withdrawal, balance enquiry, mini statement or Aadhaar Pay.
- 5
Get the receipt
The bank confirms the transaction and both sides receive confirmation.
What keeps AEPS reliable
A few points that help the service run smoothly every day.
Stable internet
A good connection keeps transactions smooth.
Clean scanner
A clean device reads fingerprints accurately.
Aadhaar-bank link
The customer’s Aadhaar must be linked to the bank account.
Customer privacy
Never share or store a customer’s biometric or Aadhaar details.
Practical tips
- Keep the fingerprint scanner clean and dry.
- Check the customer’s name and bank before confirming.
- Always hand over a receipt or confirmation.
- Keep enough cash in hand for withdrawal requests.
- Never ask a customer to share OTPs or personal details beyond what the flow needs.
See it in action
This is how a typical AEPS transaction looks on the retailer device. Tap any step to jump to it.
- 1Enter AadhaarThe retailer enters the customer’s Aadhaar number on the device or app.
- 2Select the bankThe customer chooses the bank in which their Aadhaar is linked.
- 3Scan the fingerprintThe customer places a finger on the biometric scanner to authenticate.
- 4Choose the transactionCash withdrawal, balance enquiry, mini statement or Aadhaar Pay.
- 5Get the receiptThe bank confirms the transaction and both sides receive confirmation.
Good to know
- Services, limits and charges are set by the participating banks and the programme, and are shared with you in writing.
- Transactions depend on the customer’s bank server and network availability.
- A retailer must follow security and privacy rules, and protect customer data.
- Fraud prevention is a shared responsibility, so report any suspicious activity immediately.
Frequently asked questions
What is AEPS?
Aadhaar Enabled Payment System is a way to do basic banking transactions using an Aadhaar number and fingerprint at a retailer point.
Do customers need a card or PIN?
No. The customer’s Aadhaar number and fingerprint are used to verify identity.
Which transactions are possible?
Typically cash withdrawal, balance enquiry, mini statement and Aadhaar Pay. Availability depends on the bank and programme.
Is it safe?
AEPS uses biometric authentication and bank verification. Safe practice by retailers and customers adds to security.
Who can become an AEPS retailer?
Shop owners and service point operators who complete KYC and onboarding can apply.
What if a transaction fails?
The bank usually reverses any debit as per its process. Our helpdesk helps you track and resolve it.
Do I need special equipment?
You need a smartphone or computer with internet and a supported fingerprint device. We guide you on the right one.
Why choose Uttra Vistara for AEPS?
Starting an AEPS point should feel simple. Uttra Vistara helps you with onboarding, device set-up, training and daily support.
Our team explains the process in plain language, helps resolve failed transactions and keeps you informed about updates.
You get one point of contact from your first application to everyday operations.