Now you can make any type of payments from anywhere at any time in India. You just need to have a bank account with some money in it. At small shops, buses, auto rickshaws, jewelers, restaurants etc. you can make the payments without depending on Mobile or Online Internet banking facilities. You need not even carry your ATM or Credit/Debit cards in your wallet. All you need to do is to just remember your 12 digit Adhar number.
Adhar Enabled Payment System (AEPS) is being implemented to start a revolutionary change in the financial system in our country. This facility when implemented in full swing is sure to create wonders in banking systems. The use of Adhar for money transfer is expected to bring great changes than those made by the use of ATMs and core banking facilities in the last two decades.
A majority of the people who haven’t utilized the banking facilities yet, can be made regular customers besides ensuring the growth and expansion in banking sector by getting more profit in business. This system makes use of the modern information technologies thereby ensuring the availability of the services to a large number of people with minimum cost.
Adhar is not only a method for providing government benefits for the poor but also a method for ensuring a fast, safe and secure transaction in banking and other financial systems.
The unique Identification number, Adhar has been specially designed not only to identify a person but also to make use while making various payments. The banks and the financial ministry are trying hard to make this facility a reality in the whole of India within few years. As an initiative to this, it has already started in several sectors. ATMs, Credit / Debit Cards, Mobile / Internet Banking etc have made great changes in the banking sector, but still there are many who are not aware of these. But in this new system even the ordinary people will be made to participate compulsorily, which indicates that the AEPS is sure to create wonders.
What is AEPS and how?
AEPS is designed as a Micro ATM which makes all types of money transactions possible. At present we use the bank cards by swiping, similarly we can make the transactions using the Adhar card. But you need not require the card, just the number will do. Because the Adhar card carries your finger prints, photo and retina scan to identify you. So it is not difficult to do the cross verification. So it also ensures safety because another person cannot make a transaction even if he gets your Adhar number.
The first step of this system is the Financial Inclusion which is being done now in the country. As a part of this every citizen is being provided with an Adhar number and bank account. When every person is provided with an Adhar bank account, then each Adhar number will be linked with their respective bank accounts. This is the second step of this system. When it is done the various government benefits will be directly given to the account of the deserved. From January 2013, this is being implemented at various districts in India on experimental basis. In Kerala, Wayanad and Pathanamthitta districts has been selected for this Pilot Project.
As a next step, AEPS which is the transactions using the money from bank accounts will become possible. AEPS also enables one to know their account balance, to withdraw and deposit money from their accounts. National Payments Corporation of India which makes this system possible nationwide also claims that one can transfer money to other bank accounts which are linked to their Adhar number.
Those who wish to make the cash transactions using their Adhar number will be first identified and money will be debited from their account. This facility will be available through the business correspondents who provide basic banking facilities using Micro ATM with biometric system. The person transferring the money should know the recipients Adhar number besides their own Adhar number.
As a continuation to this, the payments can be done in shops through the AEPS method. Every center will be connected to the server via an instrument. In future, all centers making transactions will have this instrument as a result of which any types of transaction can be done from anywhere. It is expected to implement this facility nationwide within few years.
The use of Adhar and money transactions using Adhar is sure to bring a huge growth in the banking sector. It ensures lakhs of crores of more business and crores of new users for the banking system. Since the Core banking facility is already being done easily, AEPS can also be implemented without much difficulty.
No currency and Counterfeits
If the AEPS is successfully implemented as it has been decided, then there won’t be the need of currency notes. One should not have to carry currencies with them. The money one has to get will be not only directly credited to their account but also can make all money transactions via that account. As a result currency won’t be needed. No currencies results in the decline of the spread of fake notes as well.
One of the main advantages of this system is the safety and security while making the money transactions. Even if another person gets your Adhar card or number, he cannot use it to make any transactions as it requires Biometric verification. At present the frauds using the Credit / Debit cards is increasing and so is the case with online theft by using your credit cards and passwords.
Another advantage is the reduced expense. One can save time and money as they do not require going to banks for any transactions.