{"id":993,"date":"2025-08-05T16:59:01","date_gmt":"2025-08-05T11:29:01","guid":{"rendered":"https:\/\/aepsseva.in\/blog\/?p=993"},"modified":"2025-08-05T16:59:01","modified_gmt":"2025-08-05T11:29:01","slug":"aeps-commission","status":"publish","type":"post","link":"https:\/\/aepsseva.in\/blog\/aeps-commission\/","title":{"rendered":"Why is AEPS Commission Falling to \u20b910? Updated Trend Report of 2025"},"content":{"rendered":"<p class=\"ds-markdown-paragraph\"><strong>Aadhaar Enabled Payment System (<a href=\"https:\/\/economictimes.indiatimes.com\/tech\/technology\/npci-reports-42-jump-in-fy25-profit-revenue-grows-to-rs-3270-crore\/articleshow\/122061697.cms?from=mdr\" target=\"_blank\" rel=\"noopener\">AEPS<\/a>)<\/strong> has been a game-changer in (<strong>AEPS commission)<\/strong> India\u2019s digital banking landscape, enabling millions to access cashless transactions. However, a surprising trend has emerged in 2025\u2014<strong>AEPS commission<\/strong>, which was once a lucrative revenue stream for banking correspondents (BCs), has plummeted to as low as\u00a0<strong>\u20b910 per transaction<\/strong>. But why is this happening? What factors are driving this decline, and what does it mean for the future of AEPS?<\/p>\n<p class=\"ds-markdown-paragraph\">In this in-depth report, we\u2019ll explore the key reasons behind the\u00a0<strong>falling AEPS commission<\/strong>, analyze market trends, and discuss what stakeholders can expect moving forward.<\/p>\n<hr \/>\n<h2><strong>Understanding AEPS and Its Commission Structure<\/strong><\/h2>\n<p class=\"ds-markdown-paragraph\">Before diving into the decline, let\u2019s briefly recap how\u00a0<strong>AEPS commissions<\/strong>\u00a0work.<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>AEPS (Aadhaar Enabled Payment System)<\/strong>\u00a0allows users to perform basic banking transactions (cash withdrawal, balance inquiry, mini statements) using their Aadhaar number and biometric authentication.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Banking Correspondents (BCs)<\/strong>\u00a0act as intermediaries, facilitating these transactions in rural and semi-urban areas where bank branches are scarce.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Commission Structure:<\/strong>\u00a0BCs earn a small fee per transaction, which was traditionally between\u00a0<strong>\u20b915 to \u20b930<\/strong>\u00a0depending on the bank and transaction type.<\/p>\n<\/li>\n<\/ul>\n<p class=\"ds-markdown-paragraph\">However, in 2025, this commission has drastically reduced to\u00a0<strong>\u20b910 or even lower<\/strong>\u00a0in some cases. Let\u2019s break down the reasons.<\/p>\n<hr \/>\n<figure id=\"attachment_996\" aria-describedby=\"caption-attachment-996\" style=\"width: 1536px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-996\" src=\"https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhffj2v82vn8h4ywbt7-min.png\" alt=\"AEPS commission\" width=\"1536\" height=\"1024\" title=\"\" srcset=\"https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhffj2v82vn8h4ywbt7-min.png 1536w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhffj2v82vn8h4ywbt7-min-300x200.png 300w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhffj2v82vn8h4ywbt7-min-1024x683.png 1024w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhffj2v82vn8h4ywbt7-min-150x100.png 150w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhffj2v82vn8h4ywbt7-min-768x512.png 768w\" sizes=\"auto, (max-width: 1536px) 100vw, 1536px\" \/><figcaption id=\"caption-attachment-996\" class=\"wp-caption-text\">AEPS commission<\/figcaption><\/figure>\n<h2><strong>Key Reasons Behind the Falling AEPS Commission<\/strong><\/h2>\n<h3><strong>1. Increased Competition Among BCs &amp; Fintech Players<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">The\u00a0<strong>AEPS ecosystem<\/strong>\u00a0has seen a massive influx of banking correspondents and fintech companies. With more players entering the market, banks have reduced commissions to cut costs.<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Example:<\/strong>\u00a0Major players like\u00a0<strong>PayNearby, Eko, and Fino Payments Bank<\/strong>\u00a0have expanded aggressively, leading to a supply-demand imbalance.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Result:<\/strong>\u00a0Banks no longer need to offer high commissions as BCs are willing to operate at lower margins.<\/p>\n<\/li>\n<\/ul>\n<h3><strong>2. Government &amp; RBI Push for Lower Transaction Costs<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">The\u00a0<strong>Reserve Bank of India (RBI)<\/strong>\u00a0and the government have been advocating for\u00a0<strong>affordable digital transactions<\/strong>\u00a0to promote financial inclusion.<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Policy Influence:<\/strong>\u00a0RBI\u2019s guidelines encourage banks to minimize charges on small-value transactions.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Direct Benefit Transfer (DBT) Impact:<\/strong>\u00a0Since many subsidies are disbursed via AEPS, keeping transaction costs low ensures beneficiaries aren\u2019t burdened.<\/p>\n<\/li>\n<\/ul>\n<h3><strong>3. Shift Towards UPI &amp; Other Digital Payment Modes<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">The rise of\u00a0<strong>UPI (Unified Payments Interface)<\/strong>\u00a0has reduced reliance on AEPS for small transactions.<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>UPI\u2019s Zero MDR Policy:<\/strong>\u00a0Unlike AEPS, UPI transactions attract no merchant fees, making them more attractive.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Consumer Preference:<\/strong>\u00a0Users now prefer scanning QR codes over biometric authentication for faster transactions.<\/p>\n<\/li>\n<\/ul>\n<h3><strong>4. Cost Optimization by Banks<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">Banks are under pressure to\u00a0<strong>reduce operational expenses<\/strong>, and AEPS commissions are an easy target.<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Automation &amp; Reduced Manual Work:<\/strong>\u00a0Improved AEPS infrastructure means fewer failed transactions, reducing the need for high BC commissions.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Bulk Transaction Discounts:<\/strong>\u00a0Banks negotiate lower rates with BCs handling high volumes.<\/p>\n<\/li>\n<\/ul>\n<h3><strong>5. Fraud &amp; Security Concerns Leading to Stricter Regulations<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">AEPS has faced\u00a0<strong>rising fraud cases<\/strong>, including biometric spoofing and unauthorized transactions.<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Increased KYC &amp; Compliance Costs:<\/strong>\u00a0Banks now invest more in fraud prevention, leading to reduced payouts to BCs.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Lower Trust in AEPS:<\/strong>\u00a0Some users are shifting to more secure alternatives, reducing transaction volumes.<\/p>\n<\/li>\n<\/ul>\n<hr \/>\n<h2><strong>Impact of Falling AEPS Commission on Stakeholders<\/strong><\/h2>\n<div class=\"markdown-table-wrapper\">\n<table>\n<thead>\n<tr>\n<th><strong>Stakeholder<\/strong><\/th>\n<th><strong>Impact<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Banking Correspondents (BCs)<\/strong><\/td>\n<td>Reduced earnings, leading to lower profitability. Many BCs may exit the business.<\/td>\n<\/tr>\n<tr>\n<td><strong>Banks<\/strong><\/td>\n<td>Lower operational costs but risk losing BC network in remote areas.<\/td>\n<\/tr>\n<tr>\n<td><strong>Customers<\/strong><\/td>\n<td>Cheaper transactions but may face reduced BC availability.<\/td>\n<\/tr>\n<tr>\n<td><strong>Fintech Companies<\/strong><\/td>\n<td>Need to innovate with hybrid models (AEPS + UPI + other services).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<hr \/>\n<h2><strong>Future Outlook: Will AEPS Commission Recover?<\/strong><\/h2>\n<p class=\"ds-markdown-paragraph\">While the\u00a0<strong>AEPS commission drop to \u20b910<\/strong>\u00a0seems concerning, the system isn\u2019t going away anytime soon. Here\u2019s what to expect:<\/p>\n<ul>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Consolidation in BC Market:<\/strong>\u00a0Only large players with high volumes will survive.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Hybrid Payment Models:<\/strong>\u00a0Fintech firms may bundle AEPS with other services to maintain profitability.<\/p>\n<\/li>\n<li>\n<p class=\"ds-markdown-paragraph\"><strong>Government Intervention:<\/strong>\u00a0If BCs start exiting, RBI may introduce minimum commission safeguards.<\/p>\n<\/li>\n<\/ul>\n<hr \/>\n<figure id=\"attachment_997\" aria-describedby=\"caption-attachment-997\" style=\"width: 1536px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-997\" src=\"https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhgeagaqmva2q0z30ef-min.png\" alt=\"AEPS commission\" width=\"1536\" height=\"1024\" title=\"\" srcset=\"https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhgeagaqmva2q0z30ef-min.png 1536w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhgeagaqmva2q0z30ef-min-300x200.png 300w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhgeagaqmva2q0z30ef-min-1024x683.png 1024w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhgeagaqmva2q0z30ef-min-150x100.png 150w, https:\/\/aepsseva.in\/blog\/wp-content\/uploads\/2025\/08\/20250805_1656_AEPS-Commission-Decline_simple_compose_01k1wzkyhgeagaqmva2q0z30ef-min-768x512.png 768w\" sizes=\"auto, (max-width: 1536px) 100vw, 1536px\" \/><figcaption id=\"caption-attachment-997\" class=\"wp-caption-text\">AEPS commission<\/figcaption><\/figure>\n<h2><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n<h3><strong>1. Why did AEPS commissions drop to \u20b910?<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">Increased competition, RBI\u2019s push for low-cost banking, and the rise of UPI have all contributed to the decline.<\/p>\n<h3><strong>2. Will AEPS commissions increase again?<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">Unlikely in the short term unless RBI mandates a minimum fee structure.<\/p>\n<h3><strong>3. How are BCs coping with lower commissions?<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">Many are diversifying into other financial services like insurance, loans, and UPI-based transactions.<\/p>\n<h3><strong>4. Is AEPS still relevant in 2025?<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">Yes, especially in rural areas where UPI penetration is still growing.<\/p>\n<h3><strong>5. What alternatives do BCs have?<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">Switching to multi-service models (AEPS + micro-ATM + bill payments) can help sustain earnings.<\/p>\n<hr \/>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p class=\"ds-markdown-paragraph\">The\u00a0<strong>fall of AEPS commission to \u20b910<\/strong>\u00a0reflects broader shifts in India\u2019s digital payment ecosystem\u2014rising competition, regulatory pressures, and changing consumer preferences. While this trend poses challenges for banking correspondents, it also pushes the industry toward innovation and efficiency.<\/p>\n<p class=\"ds-markdown-paragraph\">For now, stakeholders must adapt by diversifying revenue streams and leveraging technology to stay relevant. The future of AEPS will depend on how well it integrates with newer payment systems while maintaining its core utility for India\u2019s unbanked population.<\/p>\n<hr \/>\n<h3><strong>Disclaimer<\/strong><\/h3>\n<p class=\"ds-markdown-paragraph\">This article is for educational purposes only. The views expressed are based on market trends and available data as of 2025. If you have any concerns regarding this content, please refer to our <a href=\"https:\/\/aepsseva.in\/blog\/unauthorized-aeps-withdrawal\/\">DMCA<\/a> page for post-removal guidelines. Always verify information with official sources before making financial decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aadhaar Enabled Payment System (AEPS) has been a game-changer in (AEPS commission) India\u2019s digital banking landscape, enabling millions to access [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[228],"tags":[604,605,611,610,613,612,606,609,608,607],"class_list":["post-993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aeps","tag-aeps-commission-list","tag-aps-commission","tag-aps-commission-academy","tag-aps-commission-ils","tag-aps-commission-jobs","tag-aps-commission-training","tag-aps-commissioners-directions","tag-aps-commissioners-directions-2022","tag-aps-commissioners-directions-2023","tag-aps-commissioning-framework"],"_links":{"self":[{"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/posts\/993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/comments?post=993"}],"version-history":[{"count":3,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/posts\/993\/revisions"}],"predecessor-version":[{"id":998,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/posts\/993\/revisions\/998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/media\/997"}],"wp:attachment":[{"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/media?parent=993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/categories?post=993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aepsseva.in\/blog\/wp-json\/wp\/v2\/tags?post=993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}