UIDAI : Aadhaar Enabled Payments System

Name of the Organisation : Unique Identification Authority of India (uidai.gov.in)
Type of Facility : Aadhaar Enabled Payments System
Location : Delhi

Website : http://uidai.gov.in/

Facilities Related To UIDAI :
Aadhaar Card Status : https://www.indianjobtalks.in/8490.html
Link Aadhaar to LPG Online : https://www.indianjobtalks.in/8380.html
Update Aadhaar Data Online : https://www.indianjobtalks.in/8442.html
Aadhaar Card Update Status : https://www.indianjobtalks.in/15096.html
Update Aadhaar Data By Post : https://www.indianjobtalks.in/8487.html
Aadhaar Features and Eligibility : https://www.indianjobtalks.in/8449.html
Aadhaar Self Service Updation : https://www.indianjobtalks.in/818.html
Procedure For Aadhaar Enrolment : https://www.indianjobtalks.in/8458.html
Validate Aadhaar Digital Signature : https://www.indianjobtalks.in/8732.html
Online Appointment Booking : https://www.indianjobtalks.in/8463.html
Download Aadhaar Correction Form : https://www.indianjobtalks.in/8892.html
Online Pre-Enrolment Application : https://www.indianjobtalks.in/17262.html

Introduction :
Financial inclusion is expected to be a key application of Aadhaar authentication. Adoption of Aadhaar and Aadhaar authentication in Indian banking system is expected to change the financial landscape of country.

To enable same, UIDAI has partnered with various stakeholders including RBI, NPCI, IBA and banks to develop two key platforms:
** Aadhaar Payments Bridge (APB) – A system that facilitates seamless transfer of all welfare scheme payments to beneficiary residents’ Aadhaar Enabled Bank Account (AEBA)
** Aadhaar Enabled Payment System (AEPS) – A system that leverages Aadhaar online authentication and enables AEBAs to be operated in anytime-anywhere banking mode by the marginalized and financially excluded segments of society through microATMs

Aadhaar Payments Bridge :
APB is a repository of Aadhaar number of residents and their primary bank account number used for receiving all social security and entitlement payments from various government agencies.

APB requires using Aadhaar number as the primary key for all entitlement payments. This would weed out all fakes and ghosts from the system and ensure that the benefits reach the intended beneficiaries.

This benefit has an even greater ramification as more and more social security programs are moving from in-kind to in-cash subsidies.

APB Process Steps :
The key steps in posting payments via APB are:
** Service delivery agency that needs to make payments to its beneficiaries (such as MGNREGA wages, scholarships disbursement, old age pension etc.) provides APB File containing details of Aadhaar number, welfare scheme reference number and the amount to be paid to its bank (called sponsor bank).
** Sponsor bank adds bank IIN (Institute Identification Number provided by NPCI to participant banks) to the APB file and uploads onto NPCI server.
** NPCI processes uploaded files, prepares beneficiary bank files and generates settlement file
** Settlement file is posted to bank accounts with RBI
** Destination banks can download the incoming files for credit processing after the settlement file has been processed.

Aadhaar Enabled Payment System :
The Report of the Committee on Financial Inclusion chaired by Dr. C. Rangarajan, made two important observations:
** Technology has to enable the banks to go where the customer is present, instead of the other way around.
** Technology should allow interoperability among different systems adopted by different banks.

The Aadhaar Payment System is intended to address both the above issues.

AEPS empowers the marginalised and excluded segments to conduct financial transactions (Credit, Debit, Remittances, Balance Enquiry, etc) through microATMs deployed by Banks in their villages.

AEPS Process Steps:
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 authorization process and advises microATM on suitable next steps.

Benefits to Various Stakeholders :
Residents :
** Obviates need for multiple bank accounts for different schemes
** Faster channel for receiving all welfare payments without any middle-men
** Access to microATM in villages saves bank trips, thus reducing opportunity and access costs
** Will help in more usage of formal banking system for managing savings and borrowing
** Online and interoperable architecture of AEPS ensures anytime-anywhere access of bank accounts which can be a boon especially for the migrant population estimated to be 100 million
** Empowerment of individuals especially women

Government Departments :
** Use of Aadhaar as primary key eliminates ghost beneficiaries and leads to better targeting
** Sub-serves goal of furthering Financial Inclusion by processing government disbursements through Aadhaar number
** Reduces time and cost in payment processing
** Provide electronic audit trail and end-to-end visibility for all payments

Banks :
** Reduces the credit and operational risks in the branchless banking model
** Enables Banks to rely on BCs to reach the unbanked population, eliminating the need for a physical bank branch or ATM’s in remote areas
** Will provide an impetus to electronic payments and thus reduce cash management costs
** Different financial products through microATMs can be an additional source of revenue for banks and for the BC model

RBI :
** Sub-serves goal of furthering Financial Inclusion by processing government disbursements through Aadhaar number
** Promotes electronification of retail payments through a secure mechanism

Prerequisites for APB & AEPS :
** Aadhaar – welfare scheme number mapping
** Aadhaar number seeding in computerized databases if any
** Opening of AEBA

For More Details, Click Here

Address:
Unique Identification Authority of India (UIDAI),
Planning Commission,
Government of India (GoI),
3rd Floor, Tower II,
Jeevan Bharati Building,
Connaught Circus,
New Delhi – 110001.

Email: webadmin-uidai@nic.in