AEPS (Aadhaar Enabled Payment System) is a revolutionary banking service that allows customers to perform basic financial transactions using their Aadhaar number and biometric authentication. With the growing demand for cashless transactions in India, opening an AEPS center can be a profitable and socially impactful business opportunity.
This guide will walk you through everything you need to know—from understanding AEPS services to setting up and running your own AEPS center successfully.
What is an AEPS Center?
An AEPS center is a small business outlet that enables customers to perform banking transactions using Aadhaar authentication. These centers act as mini-banking hubs, especially in rural and semi-urban areas where traditional bank branches are scarce.
Key Services Provided by an AEPS Center
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Cash Withdrawal – Customers can withdraw money using Aadhaar and fingerprint.
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Cash Deposit – Some banks allow deposits via AEPS.
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Balance Inquiry – Check bank balance without a debit card.
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Mini Statements – View recent transactions.
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Aadhaar to Aadhaar Fund Transfer – Send money using just Aadhaar numbers.
Step-by-Step Process to Open an AEPS Center
1. Understand the Eligibility Criteria
Before starting, ensure you meet the basic requirements:
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Must be an Indian citizen above 18 years.
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Should have a valid Aadhaar card and PAN card.
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A minimum space (even a small shop or home setup works).
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Basic knowledge of banking transactions (training is usually provided).
2. Choose a Banking Partner
You need to tie up with a bank that supports AEPS services. Popular options include:
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Public Sector Banks (SBI, PNB, Bank of Baroda)
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Private Banks (HDFC, ICICI, Axis)
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Payment Banks (Airtel Payments Bank, Paytm Payments Bank)
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NBFCs & Fintech Companies (Fino Payments Bank, Spice Money)
Pro Tip: Some companies offer AEPS franchise opportunities with easy onboarding and better commission structures.
3. Register as a Business Correspondent (BC) or Agent
Most AEPS centers operate under the Business Correspondent (BC) model, where agents act as intermediaries between banks and customers.
Steps to Register:
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Visit the bank’s official website or a fintech provider.
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Fill out the application form.
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Submit KYC documents (Aadhaar, PAN, address proof, bank details).
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Pay a nominal registration fee (if applicable).
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Attend training (online/offline).
4. Set Up Your AEPS Center
Once approved, you’ll need:
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Aadhaar-Enabled Device – Fingerprint scanner & software.
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Internet Connection – Stable broadband or 4G.
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Basic Furniture – Table, chair, signage.
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Working Capital – Minimum ₹10,000-₹20,000 for cash liquidity.
Cost Breakdown:
| Item | Approx. Cost |
|---|---|
| Fingerprint Scanner | ₹2,000 – ₹5,000 |
| Laptop/Tablet | ₹10,000 – ₹20,000 |
| Internet Setup | ₹500/month |
| Initial Cash Float | ₹10,000+ |
5. Start Operations & Marketing
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Promote Locally – Use posters, word-of-mouth, and social media.
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Offer Additional Services – Mobile recharges, bill payments, insurance.
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Maintain Records – Track transactions for smooth operations.
Earnings & Revenue Model
Your income comes from commissions on transactions:
| Transaction Type | Commission (Approx.) |
|---|---|
| Cash Withdrawal | ₹5 – ₹15 per transaction |
| Balance Inquiry | ₹2 – ₹5 |
| Fund Transfer | ₹5 – ₹10 |
Example: If you process 50 transactions/day at an average of ₹10/transaction, you can earn ₹15,000/month.
Challenges & Solutions
1. Low Customer Awareness
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Solution: Conduct small workshops in your locality.
2. Technical Issues
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Solution: Keep customer support numbers handy (bank/tech provider).
3. Cash Management
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Solution: Maintain sufficient liquidity and partner with nearby banks.
Frequently Asked Questions (FAQs)
Q1. Do I need a shop to open an AEPS center?
No, you can operate from home, but a visible location helps attract customers.
Q2. What is the minimum investment required?
Around ₹15,000 – ₹30,000 for device, setup, and working capital.
Q3. Can I run AEPS along with another business?
Yes! Many grocery shops, mobile stores, and cyber cafes run AEPS as an add-on service.
Q4. How do I handle failed transactions?
Always take a receipt and guide customers to contact their bank for disputes.
Conclusion
Opening an AEPS center is a low-cost, high-potential business that supports financial inclusion while generating steady income. By following the steps above—choosing the right banking partner, setting up efficiently, and marketing smartly—you can build a successful AEPS business in no time.
Ready to start? Check with banks or fintech providers today!
Disclaimer
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