AAdhar Enabled Payment System (AEPS) is a payment system that lets you use your AAdhar number and your fingerprint or eye scan to do banking transactions. You don’t need a card or a PIN, just your AAdhar number and bank name. You can go to any AEPS agent, who is a person who has a device that can scan your biometric data and connect to your bank account. You can withdraw money, deposit money, check your balance, transfer money, or get government benefits using AEPS. AEPS is simple, safe, and convenient for people who don’t have access to banks or ATMs.
Now you know what exactly AEPS is, but with innumerable advantages of this system there is a loophole that you should be aware of. Let me tell you what are the advantages that you get from this system and what are the disadvantages that you should know and be aware of and how can you safeguard yourselves from the upcoming scam.
Some of the advantages of AEPS are:
1. It is easy to use, as you only need your AAdhar number and biometric information to initiate a transaction.
2. It is safe and secure, as it uses AAdhar authentication and encryption to protect your data and money.
3. It is interoperable across various banks, as you can access your bank account from any AEPS agent, regardless of the bank they are associated with.
4. It encourages financial inclusion and serves the underbanked sections of society, as it enables them to access basic banking services such as cash withdrawal, deposit, balance enquiry, fund transfer, etc. without visiting a bank branch or ATM.
5. It facilitates disbursement of government entitlements such as pensions, subsidies, etc. using AAdhar and authentication via UIDAI.
With advantages there comes a disadvantages as well:
1. It is vulnerable to fraud and scams by dishonest people who may have link or access to the Business Correspondents (BCs) or Bank Mitras, who can cheat the AAdhar linked Bank Account holders by giving them less money, denying receipts, or using their biometric data without their consent.
2. It does not have a mechanism to record or track the fraudulent transactions or the identity of the BCs, making it difficult to hold them accountable or provide grievance redressal.
3. It faces technical issues such as biometric mismatch, poor connectivity, or weaker systems of certain banking partners, leading to transaction failures or delays.
4. It is more expensive than other payment systems such as UPI, as it charges up to Rs. 15 per transaction, which is divided among the UIDAI, the bank, and the BC
To be safe from AEPS scams, you should follow some precautions such as:
1. Never share sensitive information such as AAdhar numbers, PINs, or passwords with anyone, including bank officials or government representatives.
2. Use strong passwords and PINs that are difficult to guess. Do not click on links or download attachments from unknown sources. Check your bank statements regularly.
3. You should be careful while using biometric devices or scanners at public places or with unknown agents. Make sure the device is clean and secure, and do not leave any fingerprints on it.
4. Most importantly you can download MAadhar App, in that app you get the option to lock your biometric and Aadhar and you can create a virtual Id.
5. And lastly, educate yourself and others about the risks and benefits of AEPS. You can also visit the NPCI website for more information on AEPS fraud liability guidelines.
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