AEPS (Aadhaar Enabled Payment System) has revolutionized banking in (How Many Types of AEPS Transactions Are There) India by enabling secure, cashless transactions using just an Aadhaar number and biometric authentication. But how many types of AEPS transactions are there, and how do they work? In this guide, we’ll explore the four primary AEPS transaction types—Balance Inquiry, Cash Withdrawal, Cash Deposit, and Mini Statement—along with their benefits, limitations, and real-world applications.
What Is AEPS?
AEPS is a bank-led payment system that allows users to perform basic banking transactions without needing a debit card, PIN, or even a smartphone. Instead, it relies on Aadhaar verification and fingerprint authentication, making banking accessible to rural and underserved populations.
Now, let’s dive into the four main types of AEPS transactions and how they function.
1. Balance Inquiry – Check Your Account Balance Instantly
How It Works
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The customer provides their Aadhaar number and selects Balance Inquiry at an AEPS-enabled micro-ATM or banking correspondent (BC) outlet.
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They authenticate the transaction using their fingerprint or iris scan.
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The system fetches the latest account balance and displays it on the screen.
Key Benefits
✔ No need for a debit card or internet connection.
✔ Instant real-time balance updates.
✔ Useful for tracking funds, especially in rural areas with limited banking access.
Limitations
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Only shows the available balance (no transaction history).
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Requires biometric authentication, which may fail if fingerprints are worn out.
2. Cash Withdrawal – Secure & Cardless Money Access
How It Works
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The user selects Cash Withdrawal, enters their Aadhaar number, and specifies the amount.
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After biometric verification, the transaction is processed, and cash is dispensed by the BC agent.
Key Benefits
✔ No need for an ATM card—ideal for those who lose or forget their cards.
✔ Works even in remote areas without ATMs.
✔ Highly secure due to biometric authentication.
Limitations
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Daily withdrawal limits apply (usually ₹10,000 per transaction).
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Requires an AEPS-enabled banking correspondent nearby.
Real-World Example
A farmer in a village without an ATM can withdraw money using AEPS at a local kirana store acting as a BC outlet.
3. Cash Deposit – Add Money to Your Account Without Visiting a Bank
How It Works
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The customer selects Cash Deposit, provides their Aadhaar number, and hands over the cash to the agent.
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After biometric verification, the amount is credited to their account instantly.
Key Benefits
✔ No need to stand in long bank queues.
✔ Useful for small business owners and daily wage workers.
✔ Instant credit confirmation.
Limitations
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Some banks charge a small fee for AEPS deposits.
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Limited to certain BC agents (not all shops support deposits).
4. Mini Statement – Track Recent Transactions
How It Works
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The user selects Mini Statement, enters their Aadhaar number, and authenticates via fingerprint.
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The system displays the last 5-10 transactions, including deposits, withdrawals, and transfers.
Key Benefits
✔ Helps monitor account activity without internet banking.
✔ Useful for detecting unauthorized transactions early.
Limitations
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Limited to recent transactions (not a full bank statement).
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Not all banks support this feature via AEPS.
Which Banks Support AEPS Transactions?
Most major Indian banks, including:
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SBI (State Bank of India)
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HDFC Bank
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ICICI Bank
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Axis Bank
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Bank of Baroda
Smaller regional banks and payment banks like Airtel Payments Bank and Paytm Payments Bank also support AEPS.
AEPS Transaction Limits & Charges
| Transaction Type | Limit per Transaction | Charges (if applicable) |
|---|---|---|
| Balance Inquiry | No limit | Usually free |
| Cash Withdrawal | ₹1,000 – ₹10,000 | ₹5 – ₹15 per transaction |
| Cash Deposit | Up to ₹10,000 | ₹5 – ₹20 per deposit |
| Mini Statement | Last 5-10 entries | Mostly free |
(Note: Limits and fees vary by bank.)
Why AEPS Is a Game-Changer for Financial Inclusion
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No smartphone required – Works on basic phones.
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No paperwork – Only Aadhaar and biometrics needed.
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Reduces fraud – Biometric authentication is more secure than OTPs or PINs.
According to the National Payments Corporation of India (NPCI), over 200 million AEPS transactions are processed monthly, proving its widespread adoption.
Frequently Asked Questions (FAQs)
1. Is AEPS safe to use?
Yes, AEPS is highly secure due to biometric authentication, reducing the risk of fraud.
2. Can I use AEPS without a bank account?
No, your Aadhaar must be linked to a bank account for AEPS transactions.
3. What if my fingerprint doesn’t work?
You can use iris scan authentication if available, or visit your bank to update biometrics.
4. Are there any hidden charges for AEPS?
Most balance inquiries and mini-statements are free, but withdrawals and deposits may have small fees.
5. Can I transfer money using AEPS?
No, AEPS currently supports only balance checks, withdrawals, deposits, and mini-statements.
Conclusion
Understanding how many types of AEPS transactions are there helps users leverage this powerful banking tool effectively. Whether you need to check your balance, withdraw cash, deposit money, or view a mini statement, AEPS offers a secure, convenient, and inclusive way to bank—especially for those without smartphones or debit cards.
As digital banking grows, AEPS continues to bridge the gap between traditional banking and India’s unbanked population, making financial services accessible to all.
Disclaimer
This article is for educational purposes only. For any issues regarding content ownership or removal, please refer to our DMCA policy. Always verify transaction details with your bank before proceeding.