The number of financial transactions of the Aadhaar Enabled Payment System (AEPS) for the month of January 2017 stood at 2.65 million and the value of these transactions stood at Rs 316 crore, National Payments Corporation of India data showed. In December 2016, the number of financial transactions on the AEPS stood at 1.97 million with a value of Rs 207 crore. Financial transactions include cash withdrawal and cash deposits.

The number of transactions on the payment system grew sharply following the demonetization of Rs 500 and Rs 1000 notes.  To give context, the volume of transactions on the AEPS for the financial year 2015-16 was 0.36 million with the value of transactions at Rs 86 crore.

Note that in January government had claimed that “more than 33.87 crore transactions have taken place through AEPS, which was only 46 lakhs in May 2014.”

The AEPS is a financial inclusion product developed by the NPCI which allows cash withdrawal, deposit and funds transfer at POS (Micro ATM) through a business correspondent of any bank using the Aadhaar authentication. So far, there are 119 banks on the AEPS. Most recently, Spice Money, the domestic remittance service from Spice Digital, got permission from the NPCI to process payments over the AEPS.

The AEPS also allows a number of non-financial transactions such as balance enquiry and mini statements. For January 2017, the number stood at 1.6 million.


A reminder: So far there are three other payment infrastructures which are linked or will be liked to the Aadhaar:

– First is the Unified Payments Interface (UPI). Although the UPI currently only maps a bank account to the registered mobile number. The second version of the UPI is supposed to have Aadhaar integration by March 2017. Note that the draft paper for the UPI had detailed out that it would be using the Aadhaar to map out financial addresses.

– Second is the Aadhaar Pay. The government launched the Aadhaar Pay in January. Customers can pay using their bank account linked with Aadhaar. To process payments, the customers will need to provide their Aadhaar number to the merchant and authorize payment through their fingerprint. The solution requires a biometric device to be linked to merchant’s mobile phone for payment authentication but customers do not need the phone at all. Currently, 14 banks have signed up for Aadhaar Pay as indicated by this Economic Times report.

– The third is the Aadhaar Payments Bridge System (APBS) which is responsible for direct benefit transfer of subsidies by the government. Subsidies will be transferred to bank accounts linked to Aadhaar. The total number of transactions on the APBS were logged in 167.36 crore worth Rs 44,967 crore which has risen by ten folds in value since 31st May 2014 ( 7 crore transactions, worth Rs 4000 crores ).

Download: NPCI data