Wednesday, September 30, 2020

Paytm Payments Bank Enables Banking Services Through Aadhaar Cards

Paytm Payments Bank Enables Banking Services Through Aadhaar Cards.

PPBL or the Paytm Payments Bank Ltd based in India has incorporated Aadhaar enabled Payment System (AePS) permitting banking services using Aadhaar cards. Now every customer of PPBL can have access to the basic services of the bank including withdrawal of cash, taking a mini bank-statement, or balance enquiry. This is done through the business correspondent of any financial/banking institutions that have enabled the AePS. Additional features like money transfer between banks and cash deposits will be included soon. This will be a blessing to people living in the rural areas and semi-urban areas as their access to an ATM or a bank branch is quite limited.

What Do You Mean By Aadhaar enabled Payment System (AePS)?

The Aadhaar enabled Payment System (AePS) is an NPCI or the National Payments Corporation of India led model that allows customers to do the basic financial transactions online at a PoS.  This is carried out through the business correspondent of any bank that has enabled AePS and it’s done through Aadhaar authentication. One of the quickest ways to establish the identity of an Indian citizen or resident is by doing Aadhaar based eKYC. Aadhaar eKYC is carried out through Aadhaar authentication. 

In this process, the biometric details and the Aadhaar number of the individual get submitted to the UIDAI (Unique Identification Authority of India) which is the Aadhaar issuing authority operated by the Indian government. After comparing the details submitted to the information stored on the Aadhaar database the UIDAI responds with a 'Yes' or 'No'.

To do a financial transaction under AePS the required inputs from the customers are :

  • Aadhaar number

  •  Institution Identification Number (IIN) and

  •  Fingerprints (to be scanned). 

The growth of the AePS has been steady and quick. At present this is also being used for the disbursal of governmental benefits including pensions for the old-aged, pensions for the physically impaired, Social Security Pensions, and NREGA (National Rural Employment Guarantee Act). 

  • Paytm Payments Bank Ltd is currently under a partnership with over 10,000 business correspondents.

  • All these correspondents have access to BC App through which AePS financial transactions are facilitated. 

  • The PPBL also plans to increase the number of correspondents on their network. 

  • This will enable them to serve customers who are associated with other banks as well. 

  • The maximum amount for each transaction is Rs. 10,000/-. 

  • The limit for withdrawing cash for each month is Rs.50, 000/- or 10 transactions (Depends on what is reached first).  

  • AePS is free for the customers of PPBL.

The Major Benefits

Given below are some of the major benefits of enabling banking services using the AePS: 

Inclusive financing

People living in suburbs and rural areas can have quick and easy access to banking services.

Better Access to Banking Services

You have better access to banking services irrespective of the specific bank with which you hold an account. With PPBL you can have access to services through the correspondent centre closest to you. 

Points of Service

To give better access to banking services, PPBL has a partnership with business correspondents that are over 10,000. According to the Managing Director and CEO of PPBL, Satish Kumar Gupta, they are working towards the betterment of financial inclusion in India through AePS. This is to ensure that people living within the remote places in our country also have quick and easy access to banking services. With AePS, PPBL has been successful in providing formal banking services to millions of people in our country who were under-served.

For more information contact us.

We, Finahub, are experts in Aadhaar related products and services like eSign, eKYC, Authentication, etc. If you want to know how your enterprise can start using it, please give us a call  @ 0484 2388285 or email us at [email protected]