Airtel Payments Bank has reportedly launched Aadhaar-enabled payment service (AePS) on February 27, according to PTI. Customers with Aadhaar-linked bank accounts can make transactions at over 2,50,000 points of Airtel Payments Bank in the country, using their Aadhaar number or their virtual ID. Previously, India Post Payments Bank (IPPB) had rolled out AePS services in September 9. Kotak Mahindra Bank, Union Bank and Yes Bank also offer AePS.
According to the National Payments Corporation of India, AePS allows online interoperable financial transactions at a point of sale through business correspondent of any bank using Aadhaar authentication. Customers only need to identify the bank they are associated with, enter their Aadhaar number and fingerprint. Through AePS, six types of transactions can take place: cash deposit, cash withdrawal, balance enquiry, Aadhaar-to-Aadhaar fund transfer, mini-statement and best finger detection.
On October 15, 2019, the RBI put into effect a new framework as per which If customer’s AePS account is debited but the transaction confirmation is not received at the merchant’s end, the merchant’s bank will have to initiate “credit adjustment” within 5 days of the transaction. The compensation payable in this case is Rs 100 per day of delay after the fifth day. The penalties remain the same if the merchant’s account doesn’t get credited.