Aadhaar Enabled Payment System (AEPS) centers have become a crucial part of India’s financial inclusion initiative, allowing millions to access banking services using just their Aadhaar number. If you’re an AEPS center operator or planning to become one, this comprehensive guide will walk you through everything you need to know—from setup to troubleshooting—ensuring your business thrives.
What is an AEPS Center?
The Aadhaar Enabled Payment System (AEPS) is a bank-led model that enables secure transactions using Aadhaar authentication. As an AEPS center operator, you facilitate services like:
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Cash withdrawals
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Cash deposits
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Balance inquiries
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Aadhaar to Aadhaar fund transfers
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Mini bank statements
This system eliminates the need for debit cards, PINs, or signatures, making banking accessible even in rural areas.
How to Become an AEPS Center Operator
1. Eligibility Criteria
To start an AEPS center, you need:
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Aadhaar-linked bank account
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A business location (even a small shop or home setup works)
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Basic documents (PAN, address proof, and bank details)
2. Required Devices
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Micro ATM or AEPS-enabled POS machine (provided by banks or payment aggregators)
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Fingerprint scanner (for biometric authentication)
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Internet connection (stable broadband or mobile data)
3. Registration Process
You can register through:
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Banks (like SBI, PNB, or private banks)
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Payment Service Providers (PSPs) (like PayNearby, Fino Payments Bank)
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Business Correspondents (BCs) (authorized agents of banks)
Once approved, you’ll receive login credentials and training.
Setting Up Your AEPS Center
1. Choosing the Right Location
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High foot traffic areas (markets, villages, near bus stands)
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Places with limited banking access (rural or semi-urban regions)
2. Marketing Your Services
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Use posters, word-of-mouth, and local advertisements
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Offer incentives like small discounts for first-time users
3. Daily Operations
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Verify customer Aadhaar and fingerprint
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Enter transaction details on your Micro ATM
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Confirm the transaction after biometric authentication
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Provide receipts for every transaction
Challenges Faced by AEPS Center Operators
1. Technical Issues
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Biometric failures (due to poor fingerprint quality)
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Solution: Use a damp cloth to clean the scanner or ask customers to moisten fingers slightly.
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Connectivity problems
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Solution: Keep a backup mobile hotspot.
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2. Fraud Prevention
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Always verify the customer’s Aadhaar details before processing transactions.
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Avoid sharing your login credentials.
3. Liquidity Management
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Maintain enough cash for withdrawals.
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Partner with nearby banks for easy cash replenishment.
Earnings and Commission Structure
As an AEPS center operator, you earn commissions on every transaction:
| Transaction Type | Approx. Commission |
|---|---|
| Cash Withdrawal | ₹5 – ₹15 per transaction |
| Cash Deposit | ₹5 – ₹10 per transaction |
| Balance Inquiry | ₹2 – ₹5 per transaction |
Note: Rates vary depending on the bank or PSP.
Tips to Maximize Your AEPS Business
✅ Offer multiple services (bill payments, mobile recharges, insurance)
✅ Provide excellent customer service (build trust for repeat customers)
✅ Use digital record-keeping (apps like KhataBook for tracking transactions)
Future of AEPS in India
With the government pushing for Digital India, AEPS transactions are expected to grow rapidly. The RBI’s focus on financial inclusion ensures long-term sustainability for AEPS center operators.
Frequently Asked Questions (FAQs)
1. Can I run an AEPS center without a shop?
Yes! Many operators run AEPS services from home or mobile setups.
2. What if a transaction fails but money is deducted?
Raise a complaint with your bank/PSP immediately. Most issues are resolved within 24-48 hours.
3. Is AEPS safe for customers?
Absolutely! Transactions require biometric authentication, making them highly secure.
4. How much investment is needed to start?
Initial costs range between ₹10,000 – ₹20,000 (for device, internet, and branding).
Conclusion
Becoming an AEPS center operator is a lucrative opportunity, especially in underserved areas. By following this guide, you can set up a smooth-running outlet, serve your community, and earn a steady income.
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