Aadhaar Enabled Payment System (AEPS) franchise is one of the (AEPS franchise) most promising business opportunities in rural India. With the government pushing for digital financial inclusion, AEPS services are in high demand, especially in villages where banking access is limited. If you’re looking for a low-investment, high-reward business, an AEPS franchise could be your golden ticket.
In this guide, we’ll break down everything you need to know about starting an AEPS franchise, including eligibility, costs, benefits, and why it’s the perfect opportunity for rural entrepreneurs.
What is an AEPS Franchise?
AEPS (Aadhaar Enabled Payment System)Â is a bank-led model that allows customers to perform basic banking transactions using their Aadhaar number and biometric authentication. It eliminates the need for debit cards, PINs, or signatures, making banking accessible even in remote areas.
An AEPS franchise enables individuals or small businesses to offer these banking services to customers, earning a commission on every transaction.
Key Services Offered Under AEPS Franchise
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Cash withdrawal
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Cash deposit
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Balance inquiry
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Aadhaar to Aadhaar fund transfer
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Mini bank statements
Why AEPS Franchise is the Best Opportunity for Rural Areas?
1. High Demand in Villages
Many rural areas still lack proper bank branches. AEPS agents act as mini-ATMs, helping villagers withdraw money, pay bills, and transfer funds easily.
2. Low Investment, High Returns
Starting an AEPS franchise requires minimal investment (₹10,000 – ₹25,000) but offers steady income through transaction commissions (₹5 – ₹30 per transaction).
3. Government Support
Schemes like PMJDY (Pradhan Mantri Jan Dhan Yojana) and Digital India promote cashless transactions, increasing AEPS adoption.
4. Multiple Revenue Streams
Apart from AEPS, agents can offer:
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DMT (Domestic Money Transfer)
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Bill payments (electricity, mobile recharge, insurance)
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Micro ATM services
5. Easy to Operate
No technical expertise is needed—just a smartphone, biometric device, and an internet connection.
How to Get an AEPS Franchise? (Step-by-Step Process)
Step 1: Meet Eligibility Criteria
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Must be 18+ years old
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Should have a valid Aadhaar & PAN card
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Basic knowledge of banking transactions
Step 2: Choose a Banking Partner or AEPS Provider
You can register as an AEPS agent through:
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Banks (SBI, PNB, Bank of Baroda, etc.)
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NBFCs (PayNearby, Fino Payments Bank, Eko India)
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Payment Aggregators (PhonePe, BharatPe, Razorpay)
Step 3: Complete KYC & Documentation
Submit:
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Aadhaar & PAN card
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Bank account details
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Passport-size photos
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Address proof
Step 4: Purchase Required Equipment
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Biometric scanner (₹2,000 – ₹5,000)
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Smartphone/Tablet (if not using a micro-ATM device)
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Internet connection
Step 5: Get Training & Start Operations
Most providers offer free training. Once approved, you can start processing transactions.
Cost of Starting an AEPS Franchise
| Expense | Estimated Cost (₹) |
|---|---|
| Biometric Device | 2,000 – 5,000 |
| Registration Fee | 500 – 2,000 |
| Initial Deposit (if required) | 5,000 – 10,000 |
| Internet & Mobile Expenses | 500/month |
| Total | 10,000 – 25,000 |
Earnings from AEPS Franchise
You earn a commission on every transaction:
| Transaction Type | Commission (₹) |
|---|---|
| Cash Withdrawal | 5 – 15 |
| Cash Deposit | 10 – 20 |
| Fund Transfer | 5 – 10 |
| Balance Inquiry | 1 – 3 |
Potential Monthly Income:
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If you process 20 transactions/day (₹10 avg. commission) → ₹6,000/month
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With additional services (DMT, bill payments) → ₹10,000 – ₹30,000/month
Top AEPS Providers for Franchise
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Fino Payments Bank
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PayNearby
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Eko India Financial Services
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BharatPe
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PhonePe (AEPS Services)
Challenges & Solutions in AEPS Franchise
1. Internet Connectivity Issues
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Solution: Use JioFi or Airtel dongle for backup.
2. Low Awareness in Villages
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Solution: Conduct small awareness camps.
3. Fraud Risks
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Solution: Always verify Aadhaar biometrics before transactions.
Success Story: How an AEPS Franchise Changed a Rural Entrepreneur’s Life
Rajesh from Bihar started an AEPS franchise with just ₹15,000. Within six months, he was earning ₹25,000/month by offering AEPS, DMT, and insurance services. Today, he runs a full-fledged BC (Business Correspondent) outlet and employs two assistants.
Frequently Asked Questions (FAQs)
1. Is AEPS franchise profitable in rural areas?
Yes! With low competition and high demand, rural AEPS agents earn well.
2. Can I run an AEPS franchise from home?
Absolutely! You only need a small space and internet connectivity.
3. What if a transaction fails?
Most providers have a 24/7 helpline for dispute resolution.
4. Do I need a shop to start?
No, you can operate from home or a small kiosk.
5. How much can I earn daily?
With 15-20 transactions, you can make ₹300-₹500/day.
Conclusion: Why You Should Start an AEPS Franchise Today
The AEPS franchise is a low-risk, high-reward business, especially in rural India. With minimal investment, government support, and growing digital adoption, now is the perfect time to become an AEPS agent.
If you’re looking for a stable income source while serving your community, take the first step today and apply for an AEPS franchise!
Disclaimer
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