AEPS Solution Provider in India: Complete Business Guide

In today’s digital India, becoming an AEPS solution provider in India is one of the smartest business opportunities for fintech entrepreneurs, retailers, and startups. AEPS, or Aadhaar Enabled Payment System, allows users to perform secure, fast, and cashless banking services like cash withdrawals, balance inquiries, mini statements, and Aadhaar-based fund transfers. With millions of Indians now relying on digital payments, AEPS has become a critical tool for financial inclusion across both urban and rural areas.

Aeps india is An AEPS solution provider offers technology and platforms for basic banking services like cash withdrawal, balance checks, and fund transfers using Aadhaar & biometrics, with key players Aeps india that empower retailers & agents to bring financial inclusion to unbanked areas. 

Aeps india is a trusted AEPS software company in India, delivering a secure, RBI-compliant platform with features like high transaction success, instant settlements, robust security, and easy AEPS API integration. Our platform empowers businesses to maximize revenue, streamline digital payment operations, and provide a reliable banking experience for customers.

By partnering with Aeps india, businesses gain an all-in-one AEPS solution in India that is cost-effective, scalable, and future-ready, giving them a competitive edge. Aeps india can confidently expand their services, ensure seamless digital transactions, and earn consistent commissions with top-tier AEPS services.

For businesses looking to enter or scale in this space, Aeps india is the right AEPS solution provider in India is crucial. A professional AEPS provider like Aeps india offers RBI and UIDAI-compliant Aeps software, multi-bank integration, real-time transaction processing, and biometric security, ensuring smooth operations and maximum customer satisfaction.

By choosing Aeps india, retailers and fintech businesses gain an all in one AEPS solution in India that is scalable, cost-effective, and future-ready, giving them a competitive edge. With Aeps platform, businesses can confidently offer secure AEPS services, expand customer reach, and earn daily commissions while ensuring smooth and trusted financial transactions.

This complete business guide will explain everything you need to know about AEPS solutions in India, including how they work, key features, integration process, benefits for businesses, and why Aeps india is the preferred choice for AEPS services. By following this guide, businesses can make informed decisions, beat competitors, and scale their digital banking operations efficiently.

What is an AEPS Solution Provider

An AEPS Solution Provider offers a platform for Aadhaar Enabled Payment System services, allowing agents (retailers/BCs) to facilitate basic banking like cash withdrawal/deposit, balance inquiry, and fund transfers for customers using Aadhaar authentication, with key players including Aeps india. Aeps india offer Aeps b2b software, Aeps API, and support to empower local shops as mini-banks, promoting financial inclusion across India. 

AEPS Solution Works

Aadhaar Enabled Payment System (AEPS) is a bank-led model allowing instant, secure financial transactions cash withdrawal, deposit, balance inquiry, and mini-statements using only an Aadhaar number and biometric authentication (fingerprint/iris) at a micro ATM or Business Correspondent (BC) outlet. It facilitates rural banking by connecting directly to the user’s bank account, eliminating the need for physical cards or PINs. 

How AEPS Solution Works
The process operates through a secure, interconnected network:

• Customer Initiation: The user visits a local BC/agent and provides their 12-digit Aadhaar number and bank name.
• Authentication: The agent uses a biometric scanner to capture the user’s fingerprint or iris.
• Verification: The system securely sends this data to the NPCI (National Payments Corporation of India) gateway, which authenticates it against the Unique Identification Authority of India (UIDAI) database.
• Transaction Processing: Once verified, the request is sent to the respective bank, and the transaction is completed in real-time.
• Completion: The agent dispenses cash (for withdrawals) and provides a receipt. 

AEPS Services Offered

Aadhaar Enabled Payment System services allow users to perform secure, interoperable, 24/7 banking transactions via biometric authentication at micro ATMs or merchant points. Core services include cash withdrawals, cash deposits, balance inquiries, mini statements, and Aadhaar-to-Aadhaar fund transfers. It enables BHIM Aadhaar Pay for digital merchant payments. 

Key AEPS Services Offered:

• Cash Withdrawal: Users can withdraw cash from their bank account using their Aadhaar number and fingerprint, eliminating the need for a debit card or bank visit.
• Cash Deposit: Funds can be deposited directly into a bank account through a business correspondent or banking agent.
• Balance Enquiry: Real-time checking of the available balance in the linked bank account.
• Mini Statement: Access to the last few transactions performed on the account.
• Aadhaar to Aadhaar Fund Transfer: Secure transfer of money between two Aadhaar-linked bank accounts.
• BHIM Aadhaar Pay: Enables merchants to accept digital payments directly from customers’ bank accounts using biometric authentication.
• Government Scheme Disbursements: Facilitates the receipt of direct benefit transfers (DBT) and other government subsidies. 

What They Offer

• Agent/Retailer Support: Easy onboarding, training, high commissions, marketing support, and multi-service platforms (money transfer, bill payments, etc.).
• Technology: Secure Aeps portals, mobile aeps apps, fast AEPS API for integration, real-time transaction processing, and compliance with NPCI standards.
• Services for Customers: Cash Withdrawal, Cash Deposit, Balance Inquiry, Mini-Statement, Fund Transfers (A2A), Micro ATM services. 

Documents Requirements for AEPS Onboarding

AEPS onboarding for agents requires mandatory KYC documents, including a PAN card, Aadhaar card (linked to mobile), bank account details (cancelled cheque/passbook), a recent passport-sized photo, and a functional biometric device. These documents are used for verification, agent registration, and setting up the merchant, often completed via eKYC. 

Key Documents for AEPS Agent Registration:

• Aadhaar Card: Mandatory, must be linked to a mobile number.
• PAN Card: Required for KYC and tax compliance.
• Bank Account Proof: Cancelled cheque, passbook, or bank statement for commission settlement.
• Passport-sized Photograph: Neutral background.
• Active Mobile Number & Email ID: For OTP and verification.
• Optional/Business Proof: Shop address proof, such as an electricity bill or rent agreement. 

Essential Technical/Physical Requirements:

• Biometric Device: Registered device for fingerprint or iris scan.
• Smartphone/Computer: With internet access. 

Onboarding Process:

• KYC Verification: Submission of the above documents.
• Agent Registration: Registering with an Aeps india.
• Hardware Setup: Installing and testing the Aeps biometric device.
• Activation: Account activation for transactions. 

Important Notes:

• Ensure the Aadhaar is linked to the bank account for smooth transactions.
• From Jan 1, 2026, RBI mandates strict Aeps KYC and background checks for AEPS retailers.

Business Opportunities with AEPS in India

AEPS India offers a high-return, low-investment business opportunity, allowing retailers to earn ₹2–₹15+ per transaction by providing banking services (withdrawals, balance inquiries) to rural and urban customers. It requires minimal investment just a smartphone and biometric device and is ideal for kirana shops, CSCs, and mobile stores to increase footfall and build customer trust. 

Key Business Opportunities with AEPS

• AEPS Agent/Retailer: Acting as a “mini-bank” to facilitate cash withdrawals, deposits, and mini-statements for customers using Aadhaar authentication, earning a commission on each transaction.
• Distributor Model: Becoming an AEPS distributor allows managing a network of agents, earning a commission on the total transaction volume generated by the network.
• White-Label Solutions: Fintech companies or entrepreneurs can launch their own branded AEPS portal, offering customized Aeps services and Aeps API integrate to other businesses.
• Integrated Utility Services: Bundling AEPS with other services like Money Transfer (DMT), Mobile/DTH Recharges, and Utility Bill Payments to maximize earnings per customer visit.
• BHIM Aadhaar Pay: Allowing merchants to accept digital payments directly from customers’ bank accounts using Aadhaar authentication, removing the need for a PoS machine. 

Why AEPS is a Lucrative Opportunity

• High Demand in Rural Areas: Bridges the gap for unbanked populations needing immediate access to cash without traveling to distant ATMs.
• Low Setup Cost: Requires only a smartphone/laptop and a certified Aeps biometric device (fingerprint scanner).
• Direct Benefit Transfer (DBT): Facilitates disbursement of government pensions, subsidies, and wages, making it crucial in rural areas.
• Recurring Income: Builds customer loyalty and,, with high daily transactions, provides a consistent, daily revenue stream. 

Why AEPS Solution Provider is Important for Digital Banking in India

Aeps india An AEPS Aadhaar Enabled Payment System solution provider is essential for digital banking in India because it enables secure, interoperable, and cardless banking services (cash withdrawal, balance inquiry) in rural and urban areas via Aadhaar authentication. They promote financial inclusion by turning local retail shops into “micro-ATMs,” reducing reliance on physical bank branches and accelerating the Digital India initiative. 

Key Reasons for Importance:

• Financial Inclusion & Reach: Aeps india is an AEPS providers act as a bridge for the unbanked and underbanked population, especially in rural areas, allowing them to access banking services through local agents.
• Simplified, Secure Transactions: Customers can perform transactions using only their Aadhaar number and biometric authentication (fingerprint/iris), eliminating the need for debit cards or PINs.
• Empowering Local Businesses: AEPS software companies like Aeps india turn small shops and retailers into “mini-banks,” increasing customer footfall and providing them with new income streams through commissions.
• Direct Benefit Transfer (DBT): They facilitate secure, transparent, and direct transfers of government subsidies, pensions, and wages into beneficiaries’ bank accounts.
• High Interoperability & Reliability: Aeps india offer high success rates (98%+) and support transactions across multiple banks, ensuring seamless, real-time service.
• Reduced Operational Costs: By allowing last-mile banking through agent networks, the burden on physical bank ATMs is reduced. 

Aeps india ensure secure Aeps API integration, compliance with NPCI regulations, and robust, safe technology for digital transactions. 

Why AEPS is Important for Financial Inclusion in India

The Aadhaar Enabled Payment System (AEPS) is vital for financial inclusion in India by enabling rural and unbanked populations to access essential banking services like cash withdrawals, deposits, and balance inquiries using only their Aadhaar number and biometrics. It removes the need for smartphones, cards, or PINs, fostering a secure, low cost Aeps, and accessible digital, last-mile banking ecosystem through local agents. 

Key Reasons AEPS is Critical for Financial Inclusion: 

• Last-Mile Access: It eliminates the need to travel long distances to bank branches, allowing users in remote areas to conduct transactions through nearby Business Correspondents (BCs) and local agents.
• Bridge for Non-Tech Savvy Users: By using fingerprint or iris scan authentication, AEPS enables individuals with minimal literacy or technical skills to securely manage their finances.
• Interoperability: It allows customers of any bank to use a single AEPS-enabled device, making it a flexible, universal, and accessible service across India.
• Direct Benefit Transfer (DBT) Support: It facilitates the direct, secure, and instant receipt of government subsidies, pensions, and wages from schemes like MGNREGA directly into bank accounts, reducing corruption and delays.
• Reduced Costs and High Security: Transactions are low-cost or free, and biometric authentication significantly reduces the risk of fraud compared to traditional PIN-based systems. 

Role of an AEPS Solution Provider

Aeps india is an AEPS solution provider acts as a critical intermediary between banks, merchants, and customers, enabling secure, cardless, and PIN-less banking transactions using Aadhaar authentication. They provide the technology Aeps platform, Aeps API integration, and agent network management to facilitate essential services like cash withdrawal, deposits, balance inquiries, and mini-statements, primarily driving financial inclusion in rural areas. 

Key Roles of an AEPS Solution Provider:

• Technology & Infrastructure Provision: They offer best AEPS software, Aeps API integrating, and user friendly Aeps platforms (mobile apps/web portals) for agents to process transactions.
• Agent Network Management (BC Model): They onboard, train, and manage Business Correspondents (BCs) or local retailers, transforming small shops into “mini-banks”.
• Secure Aadhaar Authentication: They facilitate safe, encrypted transactions using Aeps biometric verification (fingerprint or iris scan) connected to the NPCI network.
• Interoperability Across Banks: They ensure that customers can access their Aadhaar-linked accounts from any bank, regardless of the bank the agent is associated with.
• Driving Financial Inclusion: They extend banking services to unbanked, rural, and underserved areas, allowing residents to access cash without needing to travel to a physical bank branch.
• Support for Government Schemes (DBT): They assist in the disbursement of government benefits, such as pensions and subsidies, directly to beneficiaries.
• Transaction Management & Support: They handle the settlement of transactions, offer technical support, and ensure low downtime for services like cash withdrawal, deposit, and mini-statement generation. 

By providing these services, Aeps india allow, for example, small retailers to earn commissions while bringing formal banking to their communities. 

Benefits AEPS Solution Provider

Aeps india is an AEPS solution provider enables businesses to offer essential banking services cash withdrawals, balance inquiries, and fund transfers using customer biometrics, providing high commission-based income with low setup costs. It transforms local shops into mini-banks, boosting footfall and driving financial inclusion, particularly in underserved rural areas. 

Key Benefits of Becoming an AEPS Solution Provider/Agent:

• High-Profit Margins: Earn attractive commissions on every transaction (cash withdrawals, balance checks).
• Low Investment & Easy Setup: Requires minimal infrastructure, often just a smartphone or computer and a, Aeps biometric device (fingerprint scanner).
• Increased Customer Footfall: Attract more customers to your business by offering essential financial services, leading to higher customer loyalty.
• Wide Accessibility & Convenience: Allows users to perform secure, Aadhaar-based transactions without needing a debit card, PIN, or traditional bank branch.
• Multiple Revenue Streams: Easily bundle AEPS with other services like bill payments, mobile recharges, and money transfers to boost income.
• Reliable and Secure: Transactions are authenticated using biometric data, reducing the risk of fraud. 

Operational Advantages for Businesses:

• Empowers Rural Areas: Bridges the gap between traditional banking and rural, underserved populations.
• Efficient Cash Management: Enables retailers to manage their cash flow efficiently.
• Wide Network Support: Enables interoperability across multiple banks, allowing customers from any bank to use the service. 

Features AEPS Solution Provider

Aeps india offer secure, cardless, and PIN-less banking services cash withdrawal, deposit, balance inquiry, mini-statements, and Aadhaar-to-Aadhaar fund transfers using biometric authentication. Key features include high success rates, real-time transaction processing, multi-bank interoperability, and robust, secure platforms tailored for rural financial inclusion via agents and Micro ATMs. 

Core Functional Features

• Cash Withdrawal & Deposit: Enables instant, secure cash transactions for users via agents.
• Balance Inquiry & Mini Statements: Provides immediate account balance checks and recent transaction details.
• Aadhaar-to-Aadhaar Fund Transfer: Allows direct, secure money transfers between Aadhaar-linked accounts.
• BHIM Aadhaar Pay: Facilitates merchant payments using biometric authentication.
• Biometric Authentication: Uses fingerprint or iris scans to ensure secure, secure, cardless, and PIN-less transactions. 

Technical and Administrative Features

• High Success Rate & Uptime: Aeps india ensure minimal failed transactions.
• Multi-bank Interoperability: Enables transactions across various banks through a single Aeps platform.
• Instant Settlement: Provides real-time processing and immediate settlement for agents.
• Agent & Admin Dashboard: User-friendly Aeps dashboards for commission tracking, reporting, and management.
• Secure API Integration: Offers easy, secure Aeps API integrate for developers to build Aeps solutions. 

Business & Growth Features

• Competitive Commission Structures: High Aeps commission rates for agents and distributors, with Aeps india offering up to ₹15.
• Free/Low-Cost Onboarding: Aeps india offer free AEPS ID registration to encourage new users.
• Scalable Solutions: Supports growth for retailers, distributors, and startups.
• Compliance & Security: Adheres to NPCI and UIDAI regulations, including security measures. 

AEPS API Integration Process

The AEPS API integration process involves several key steps, from initial preparation and Aeps india selection to technical Aeps development and going live with services. You must work with an authorized Aeps india, as direct integration with the National Payments Corporation of India (NPCI) is not possible. 

Pre-Integration Steps

1. Choose a Certified AEPS API Provider: Select a Aeps india that is licensed by the NPCI and follows RBI and UIDAI guidelines. Factors to consider include reliability, security standards, support, and commission structure.
2. Register Your Business and Complete KYC: Sign up with the Aeps india and complete the Know Your Customer (KYC) verification process. This typically requires submitting business registration documents (if applicable) and personal documents such as your Aadhaar card, PAN card, and bank account details.
3. Acquire and Register Biometric Devices: Purchase UIDAI-certified Aeps biometric devices (fingerprint or iris scanners) from a compatible manufacturer. Install the manufacturer’s Registered Device (RD) service software and register the device with Aeps india.
4. Obtain API Credentials and Documentation: Upon successful Aeps registration and verification, the Aeps india will issue necessary Aeps API keys, access tokens, and comprehensive technical documentation. This documentation details best Aeps API endpoints, request/response formats, and authentication mechanisms. 

Technical Integration Steps

1. Develop the User Interface (UI) and Backend Logic: Aeps software development team will build the front-end components for customer interaction (e.g., fields for Aadhaar number, bank name, transaction type) and the back-end logic to securely interact with the top AEPS API endpoints.
2. Integrate Biometric Device SDK: Implement Aeps biometric device Software Development Kit (SDK) to securely capture and encrypt the customer’s biometric data for authentication. Ensure sensitive data is handled with robust security and data encryption measures.
3. Test in a Sandbox Environment: Thoroughly test all transaction types (cash withdrawal, balance inquiry, mini-statement) within the Aeps india sandbox or testing environment. This ensures functionality and helps identify potential issues before going live.
4. Implement Error Handling and Security: Develop Aeps robust error handling mechanisms for failed transactions and ensure compliance with security standards for handling sensitive data (e.g., using HTTPS, IP whitelisting). 

Going Live and Operation

1. Go Live (Production Deployment): After successful testing and validation, switch Aeps application from the sandbox to the live environment using the production Aeps API credentials and endpoints.
2. Train Agents and Monitor Transactions: Train your end-users or agents on how to use the system correctly. Continuously monitor transactions, handle errors, reconcile settlements, and provide customer support.
3. Ensure Ongoing Compliance: Adhere to all ongoing regulatory guidelines and security standards set by the RBI, NPCI, and UIDAI. 

Security, Compliance & RBI Guidelines for AEPS

Effective January 1, 2026, the RBI has mandated strict security and compliance norms for best AEPS solutions to combat fraud, requiring banks to conduct thorough Aeps KYC of AePS Touchpoint Operators (ATOs) and implement continuous, real-time transaction monitoring. Key rules include the “one-operator-one-bank” rule, mandatory Aeps e-KYC for agents inactive for three months, and adoption of secure L1 biometric devices. 

Key RBI Guidelines for AEPS Compliance

• Agent Due Diligence (KYC): Banks must perform comprehensive KYC on all ATOs before onboarding, in line with RBI’s Master Direction.
• Inactive Account Policy: If an agent remains inactive for 3 months, they must undergo mandatory re-KYC.
• One Operator, One Bank: To prevent fraud, an agent is allowed to work with only one acquiring bank.
• Transaction Limits & Monitoring: Real-time monitoring of transaction volume, frequency, and location is required.
• API Security: Aeps service API for AePS must be secured and used only for core AePS functions, with stringent protection against misuse.
• Grievance Redressal: 24/7 customer support is required, with a fraud reporting window reduced to 48 hours. 

Security Requirements

• Biometric Security: Mandatory use of L1 certified devices to prevent spoofing, replacing older L0 devices.
• Multi-Factor Authentication (MFA): High-value transactions (e.g., over ₹5,000) may require additional authentication like OTP in addition to biometrics.
• Real-time Risk Management: Implementation of fraud detection systems to monitor and block suspicious, high-risk, or fraudulent transactions, especially in sensitive geographies.
• Data Security: Adherence to Aadhaar Act, 2016 regulations regarding biometric data, requiring secure handling of data. 

Operational Compliance

• Training: Regular training of agents to prevent accidental fraud and ensure awareness of compliance requirements.
• System Integrity: Regular updates to fraud detection systems to reflect evolving fraud patterns.
• Reporting: Prompt reporting of suspicious transactions to authorities and NPCI. 

Note: These regulations are effective from January 1, 2026, and non-compliance may result in regulatory action against banks and fintech partners.

AEPS Solution Cost Pricing

AEPS solution costs in India involve one-time setup fees ranging from ₹12,000 to ₹35,000, with white label Aeps software solutions often costing between ₹25,000 and ₹1.2 Lakhs. Biometric scanners cost ₹1,500–₹3,000, while full Micro ATM machines with printers range from ₹10,000–₹15,000+. Transaction charges are generally ₹5–₹20, with Aeps commissions for agents. 

Key Components of AEPS Solution Cost

• Software/Portal (White-label): Ranges from ₹15,000 for basic, up to ₹1,00,000+ for advanced, branded, or white label Aeps portals.
• API Integration/Setup Fee: Initial Aeps setup charges usually range from ₹12,000 to ₹35,000.

Hardware (Biometric/Micro ATM):

• Fingerprint Scanner: Mantra MFS100 approx. ₹1,500–₹3,000.
• All-in-One Micro ATM (with printer): ₹10,000–₹15,000+.
• Annual Maintenance Charges (AMC): Varies by Aeps india, usually charged annually after the first year. 

Transaction Charges & Commission Structure

• Transaction Fees: Typically, customers are not charged, but merchant/bank fees are often ₹5–₹20 per withdrawal.
• Agent Commission: Agents can earn lucrative commissions, with some, like Aeps india, offering up to ₹13+2 on transactions. 

Key Providers and Pricing Examples

• Aeps india Sellers: AEPS admin software , White Label Aeps solutions are available around ₹11,000, while full white label Aeps software.
• Noble Web Studio: Offers comprehensive white label Aeps admin portals ranging from ₹15,000 to over ₹2,50,000.

AEPS Commission Structure and Earnings

AEPS offers a high-return, low-investment business model, allowing agents to earn commissions on cash withdrawals, balance inquiries, and fund transfers. Commission earnings range from ₹2 to ₹15+ per transaction, typically tiered by withdrawal amount, with higher earnings (₹30003000+) yielding maximum profit. 

AEPS Cash Withdrawal Commission Structure

Aeps Commission rates are generally higher for larger transaction amounts, often tiered to reward higher volume transactions. 

• ₹100 – ₹999: ₹2 commission.
• ₹1,000 – ₹1,499: ₹3 per transaction.
• ₹1,500 – ₹1,999: ₹4.5 per transaction.
• ₹2,000 – ₹2,499: ₹5.5 per transaction.
• ₹3,000+: ₹13 to ₹15+ per transaction. 

Other Transaction Commissions

• Cash Withdrawals: ₹2 to ₹15+ per transaction, depending on the amount.
• Balance Inquiries: ₹2 to ₹5 per query.
• Mini Statements: ₹3 to ₹7 per statement.
• Fund Transfers/Other Services: ₹3 to ₹8, plus potential earnings from BBPS (bill payments). 
• Aadhaar Pay: Allows agents to charge a small percentage (e.g., 1%) to the customer. 

Tips to Maximize Earnings:

• Increase Customer Base: Locate in areas with limited bank/ATM access.
• Diversify Services: Offer mini-statements, bill payments (BBPS), and mobile recharges to boost revenue.
• Use High-Commission Portals: Aeps india is a top AEPS service provider in india that offer competitive, tiered, or percentage-based commissions (e.g., up to 1.25% in some cases). 

Factors Influencing Earnings

• Service Provider: Aeps india portals offer varying rates, with some offering up to ₹13+2.
• Transaction Volume: Higher daily transaction volumes lead to higher overall earnings.
• Bank/CSP Status: Acting as a Business Correspondent (BC) for banks can provide additional incentives (e.g., ₹25-₹50 for new account opening).
• 2026 Regulations: New RBI controls effective January 1, 2026, may impact operations. 

AEPS Device and Biometric Requirements

To operate an Aadhaar Enabled Payment System (AEPS) outlet, you need a UIDAI/STQC-certified biometric scanner (fingerprint or iris), an Android smartphone or Windows computer, stable internet (4G/Wi-Fi), and AEPS-enabled banking software. Biometric Aeps devices must be Registered Devices (RD) for security. 

Essential AEPS Hardware & Requirements

• Biometric Device (Fingerprint/Iris): Mandatory STQC-certified, Registered Device (RD) Service compliant device (e.g., Morpho, Mantra) to ensure secure, live data capture.
• Processor Device: An Android smartphone, tablet, or PC/laptop, or a dedicated Micro ATM terminal.
• Internet Connectivity: Reliable, high-speed connection for real-time Aadhaar authentication.
• AEPS App/Software: A secure aeps application from a registered Aeps india.
• Printer (Optional): A portable Bluetooth thermal printer for generating physical receipts. 

Biometric Device Requirements (RD Service) 

UIDAI mandates that all biometric devices must be Registered Devices (RD), meaning they are registered with the authority to ensure secure, signed, and encrypted biometric data transmission. 

• L0 Compliance: Minimum requirement, relying on the host system for encryption.
• Supported Devices: Popular RD-certified models include Mantra MFS100. 

Customer Requirements

• Aadhaar Linkage: The customer’s bank account must be linked to their 12-digit Aadhaar number.
• Biometric Authentication: Customers must provide a fingerprint or iris scan for transaction authentication. 

Typical Setup Costs

• Fingerprint Scanner: ₹2,000 – ₹5,000.
• Smartphone: ₹7,000 – ₹15,000.
• Thermal Printer: ₹3,000 – ₹8,000. 

Note: As of 2026, stricter RBI controls on AEPS security are in effect. 

AEPS Registration Process in India

The AEPS registration process involves choosing a Aeps india, filling out an application, completing Know Your Customer (KYC) with documents (Aadhaar, PAN, bank details), getting a UIDAI-certified biometric device, installing Aeps banking software, and undergoing training for activation to offer banking services like cash withdrawals and balance inquiries. 

Here are the step-by-step instructions:

1. Choose a Service Provider: Select a government-approved Business Correspondent (BC) partner like Aeps india for AEPS service that offers secure Aadhaar Enabled Payment System software and support.
2. Complete Application & KYC: Fill out the Aeps india online or offline registration form with your details and submit required KYC documents: Aadhaar, PAN card, bank details, and a photo.
3. Verification: The Aeps india will verify your submitted documents and background.
4. Register Hardware: Get a UIDAI-authorized biometric device (fingerprint/iris scanner) and register it with the Aeps india platform.
5. Software Installation: Install the best AEPS application or Aeps service software on your computer or smartphone.
6. Training: Receive training on how to use the system, handle transactions, and manage customer services.
7. Activation: Once verification, hardware setup, and training are complete, your AEPS account gets activated, and you can start offering services. 

After Activation (How You Use AEPS):

• Customer provides Aadhaar, bank name, and amount.
• You use the biometric device to authenticate the customer (fingerprint/iris).
• Transactions (withdrawal, balance check, etc.) are completed, and receipts are issued. 

AEPS Security and Compliance

AEPS (Aadhaar Enabled Payment System) security relies on biometric authentication (fingerprint/iris) linked to Aadhaar, eliminating cards and PINs to reduce fraud. It requires RBI/NPCI-certified devices, end-to-end encryption, and real-time transaction monitoring, with new, stricter compliance rules effective January 1, 2026, for enhanced security. 

Key Security and Compliance Measures

• Biometric Authentication: Transactions are authorized using unique fingerprints or iris scans, ensuring high security and reducing fraud risk.
• Real-time Processing: Transactions are processed instantly through NPCI, which provides immediate confirmation and reduces the chance of fraud.
• Data Encryption: Sensitive user data is encrypted during transmission and storage to prevent data theft.
• Certified Devices: Only approved Aeps biometric devices are used for authentication to ensure compliance with standards.
• KYC and Access Control: Strict guidelines for BCs (Banking Correspondents) and Aeps API providers like Aeps india, including IP whitelisting for secured Aeps API access. 

Compliance and Regulatory Framework

• NPCI and RBI Guidelines: AEPS is a bank-led model regulated by the Reserve Bank of India (RBI) and managed by the National Payments Corporation of India (NPCI).
• 2026 Regulations: New RBI directives for 2026 require tighter controls to enhance security, specifically targeting fraud mitigation and faster response times when reporting unauthorized transactions.
• Liability Framework: Banks must follow strict procedures to block accounts immediately upon fraud reporting, with increased liability for delays in action. 

Operational Security Best Practices

• Privacy Protections: Users do not need to share account numbers, only their Aadhaar number, for verification. 
• Physical Verification: The physical presence of the user is mandatory for biometric verification.
• Agent Integrity: Regular audits of BCs and agent points are necessary, along with ensuring firmware updates for biometric devices.

Aeps NPCI Guidelines 2026

Effective January 1, 2026, the RBI and NPCI have introduced strict AePS guidelines to curb fraud, requiring banks to conduct enhanced due diligence, KYC, and background checks on all Aadhaar-enabled Payment System Touchpoint Operators (ATOs). Key rules mandate continuous monitoring of ATOs, transaction limits based on risk profiles, and mandatory re-KYC for inactive agents. 

Key 2026 AePS Guidelines & Security Measures

• Mandatory Operator Due Diligence: Banks must conduct thorough KYC and risk assessment of all AePS Touchpoint Operators (agents) before onboarding, ensuring they are not involved in fraudulent activity.
• Inactivity Re-verification: If an agent is inactive for 3 consecutive months, they must complete full KYC again before resuming transactions.
• Continuous Transaction Monitoring: Banks must monitor ATO activities via systems that flag anomalies based on location, transaction volume, and velocity.
• Enhanced Security Standards: The guidelines emphasize the use of secure APIs and improved biometric technology, such as mandatory liveness detection, to prevent spoofing.
• Agent Requirements: Agents must use certified biometric devices, maintain valid PAN/Aadhaar, and provide transaction slips to customers.
• Fraud Reporting: Any suspicious activity must be immediately reported to the bank and the National Cyber Crime Reporting Portal. 

These measures aim to tighten security around the Business Correspondent model to protect customer data and prevent unauthorized withdrawals. 

AEPS for Rural & Urban Digital Banking Growth

The Aadhaar Enabled Payment System (AEPS) has emerged as a crucial driver for digital banking growth in India, recording over 20 billion transactions by August 2025. It facilitates secure, cardless, and PIN-less transactions such as cash withdrawals, deposits, and balance inquiries using biometric authentication. AEPS empowers rural areas by bridging infrastructure gaps and enabling local shop-based banking, while offering convenient, interoperable digital payments for urban users. 

Key Aspects of AEPS for Digital Banking Growth:

• Financial Inclusion & Rural Access: AEPS acts as the backbone of rural banking by enabling doorstep, cashless, and paperless services. It allows customers to use banking services through Micro ATMs and Business Correspondents (BCs) without visiting distant bank branches.
• Ease of Use & Security: The system uses Aadhaar-linked biometrics (fingerprint/iris) to verify identity, making it secure and user-friendly for populations with low digital literacy.
• Convenience & Speed: It eliminates the need for physical cards or PINs, allowing instant access to funds.
• Retailer/Merchant Empowerment: Local retailers can act as banking points, enhancing their income via commissions.
• Key Transaction Types: Major services include Cash Withdrawal, Balance Enquiry, and Cash Deposit.
• Growth Metrics: In 2024-2025, AEPS saw massive adoption, with a significant portion of users, including women in Tier-III and rural areas, preferring it for secure, local transactions. 

Impact on Banking Infrastructure:

• Cost-Effective Solution: AEPS reduces the cost for banks to expand their footprint, as they can utilize existing retail networks as micro-ATMs instead of building new branches.
• Interoperability: It allows users to transact with any bank account linked to their Aadhaar, facilitating a seamless digital experience. 

Despite challenges with biometric data quality and infrastructure, AEPS continues to redefine fintech in India, providing a robust, accessible, and secure digital payment ecosystem across the country. 

Step-by-Step KYC in AEPS Service Process

To complete KYC for AEPS, you typically provide your Aadhaar & Bank details, undergo biometric verification (fingerprint/iris scan) via a Micro ATM for instant UIDAI confirmation, link your Aadhaar to your bank, and potentially submit offline documents like PAN/Address proof if digital verification fails, all under an agent’s guidance to securely process transactions. 

Here are the general steps for a customer using AEPS:

1. Customer Details Collection (at AEPS Agent/MicroATM)

• Provide Aadhaar: Give your 12-digit Aadhaar number to the agent or scan its QR code.
• Select Bank: Inform the agent your bank name or enter the Bank Identifier Number (IIN).
• Choose Transaction: Select the type of service (e.g., cash withdrawal, balance inquiry). 

2. Biometric (e-KYC) Authentication 

• Biometric Scan: Place your finger or eye on the device’s scanner for an iris/fingerprint scan.
• Digital Handshake: The MicroATM sends your Aadhaar and biometric data to UIDAI servers via the NPCI switch.
• UIDAI Verification: UIDAI verifies the biometrics against your stored data.
• Bank Authorization: If verified, your bank approves the transaction, and funds are dispensed or updated. 

3. Offline KYC (If Biometric Fails) 

• Submit Documents: You may need to submit physical copies of your Aadhaar, PAN card, and address proof (Voter ID, Passport). 

4. Bank Account Linking (Prerequisite)

• Ensure your Aadhaar is linked to your bank account for AEPS to work. 

Key Points for Agents/Providers

• Data Security: Keep customer data secure and use official portals.
• Regular Updates: Re-verify KYC records as per RBI guidelines.
• Mandatory Steps: For some services, OTP requests (mobile/email) and biometric verification must happen before the main transaction. 

AePS e-KYC API Provider

Aeps india one of the AEPS e KYC API Provider offer secure interfaces for integrating Aadhaar-based biometric and OTP verification for financial services like cash withdrawal, balance inquiry, and fund transfers, with Aeps india being prominent examples in India, focusing on high success rates, real-time settlements, multi-bank support, and robust security for businesses. Aeps india enable seamless digital onboarding and transactions, essential for retailers and fintechs building digital payment ecosystems. 

What They Offer (Features):

• Biometric & OTP Authentication: Secure Aadhaar verification for KYC.
• Multi-Bank Support: Integration with various banks.
• High Transaction Success Rates: Minimizing failed transactions.
• Real-Time Settlements: Quick fund transfers.
• Developer-Friendly APIs: Easy integration into existing apps.
• Regulatory Compliance: Adherence to RBI guidelines. 

Factors to Consider Before Selecting an Top AEPS Solution Provider

Aeps india is an Aadhaar Enabled Payment System provider requires prioritizing NPCI/RBI compliance, high transaction success rates (>98%>98%), robust security, and 24/7 technical support. Key factors include competitive commission structures, low downtime, easy user interface (UI), and fast settlement cycles for working capital. 

Key Factors for Selecting an AEPS Provider:

• Compliance and Security (Non-Negotiable): Ensure the Aeps india is certified by the National Payments Corporation of India (NPCI) and adheres to Reserve Bank of India (RBI) guidelines. The system must use strong data encryption, SSL, and two-factor authentication.
• Transaction Success Rate & Stability: Choose a Aeps india with high transaction success rates (ideally 98%+98%+) and minimal downtime to ensure customer trust and avoid failed transactions.
• Commission Structure & Costs: Evaluate the commission rates for cash withdrawals and balance inquiries. Check for hidden costs and opt for transparent, competitive, or tiered commission structures.
• Support & Reliability: Look for 24/7 technical support to quickly resolve issues. Reliability of the platform is crucial for maintaining daily operations.
• User Experience (UI/UX): The Aeps app or Aeps portal should be intuitive, easy to use for agents, and support multiple devices (Android, Windows).
• Settlement Speed: Ensure the Aeps india offers instant or same-day settlements to keep working capital available.
• Value-Added Services: Check if the Aeps india offers additional services such as Mini ATM, Bharat Bill Payment System (BBPS), and Domestic Money Transfer (DMT) for increased revenue streams.
• Scalability: The Aeps india should be able to handle increased transaction volumes as your business grows. 

Before finalizing, verify the reputation of the Aeps India through reviews and industry presence. 

How to Choose Best AEPS Solution Provider in India

Aeps india is the best AEPS solution provider in India, focus on security (NPCI/RBI certified), high transaction success rates (98%+), competitive commissions, user friendly aeps apps or Aeps admin portals, fast settlements, and reliable 24/7 support, while also looking for extra services like bill payments and money transfers to maximize earnings and serve customers better. 

Key Factors to Evaluate:

Security & Compliance:

1. NPCI/RBI Certification: Essential for legal and secure operations.
2. Encryption: Ensure robust security measures protect customer data.

Performance & Reliability:

1. High Success Rate: Look for Aeps india with 98%+ transaction success rates to avoid customer frustration.
2. App Stability: A user friendly Aeps, low-downtime app is crucial for smooth transactions.

Profitability & Fees:

1. Commission Structure: Compare transparent, competitive payouts per transaction.
2. Low/No Setup Fees: Check for joining fees; many offer free Aeps ID.
3. Instant Settlements: Same-day or instant fund settlement keeps your capital liquid.

User Experience & Support:

1. Easy Interface: Intuitive top Aeps app or Aeps b2b portal for quick processing.
2. 24/7 Support: Quick resolution for technical issues via call, chat, or WhatsApp.

Value-Added Services:

1. Multi-Service Platform: Offers bill payments (BBPS), recharges, money transfers (DMT), and micro ATM service for extra income.

Scalability & Reputation

1. Growth Potential: Can the Aeps india support business expansion (e.g., white-label, distributor models)?.
2. Reviews: Check testimonials for reliability and service quality. 

Why Aeps india is a Trusted AEPS Solution Provider in India

Aeps india is a top AEPS solution provider excels by offering high transaction success rates, strong security (NPCI/RBI compliant), competitive commissions, user-friendly apps, and value-added services like bill payments and money transfers, ensuring retailers earn well and serve unbanked areas efficiently, promoting financial inclusion. Reliability, 24/7 support, and features like instant settlement are crucial for building retailer trust and growing their business. 

Key Factors for a Top AEPS Provider:

1. High Performance & Reliability: Real-time processing, high uptime (99.9%), and low transaction failure rates are essential for smooth retailer operations.
2. Security & Compliance: Strict adherence to RBI/NPCI guidelines, using Aadhaar biometrics and encryption to prevent fraud.
3. Attractive Commissions: Competitive and transparent payouts (e.g., ₹12-₹15 per transaction) and quick settlements to maximize retailer income.
4. User Experience: Intuitive apps, simple onboarding, and easy-to-use Aadhaar Enabled Payment System API for seamless agent and customer interaction.
5. Multi-Service Platform: Offering services beyond AEPS like Domestic Money Transfer (DMT), BBPS (Bharat Bill Payment System), and Micro ATM to create multiple income streams.
6. Value-Added Services: Integration with digital services to become a one-stop shop for customers, increasing footfall.
7. Comprehensive Support: 24/7 technical assistance and training for retailers.
8. Financial Inclusion Focus: Empowering retailers to serve rural and semi-urban areas, bridging banking gaps. 

Why Retailers Choose Top Providers:

• Increased Footfall: Becoming local banking points attracts more customers.
• Steady Income: Consistent commissions on basic banking services.
• Customer Loyalty: Building trust by providing essential, convenient services.
• Low Investment: Minimal setup with just a smartphone and biometric device. 

Future Trends AEPS Solution Provider

Future trends for AEPS solutions focus on enhanced security via AI/ML fraud detection, advanced biometrics (face/iris with liveness), and blockchain; deeper integration with UPI and digital wallets; expansion into micro-loans, insurance, and bill payments; mobile-first, cloud-based, API-driven platforms; and evolving into comprehensive rural financial hubs, all under stricter RBI compliance for increased financial inclusion and user experience. 

Key Technology Trends

• Artificial Intelligence (AI) & Machine Learning (ML): Real-time fraud detection, personalized financial advice, and risk assessment.
• Advanced Biometrics: Moving beyond fingerprints to iris/face recognition, incorporating mandatory liveness detection to prevent spoofing.
• Blockchain Integration: For secure, transparent, and immutable transaction records, enhancing trust.
• API-First & Cloud-Based Platforms: Enabling easier integration with other services and greater scalability. 

Service & Ecosystem Expansion 

• Deeper Ecosystem Integration: Seamless linking with UPI, digital wallets, and other financial platforms.
• Expanded Services: Offering micro-loans, insurance, bill payments, and merchant services (BHIM Aadhaar Pay).
• Unified Digital Banking Hubs: Transforming retailers into comprehensive financial access points in rural areas. 

User Experience & Security

• Mobile-First Design: User-friendly interfaces for smartphones to improve accessibility.
• Enhanced Security: Stricter agent KYC, continuous transaction monitoring, and multi-modal biometrics. 

Regulatory & Market Drivers

• RBI Mandates: Stricter regulations (effective Jan 2026) driving better security and compliance, especially regarding Aeps agent KYC.
• Financial Inclusion: Continued focus on bringing banking services to unbanked and underbanked populations in remote areas. 

Future Impact

• Exponential Growth: Projected transaction volumes to continue rising significantly.
• New Revenue Streams: Opportunities for fintechs and agents through embedded finance and diverse service offerings. 

Conclusion

Aeps india is the best AEPS solution provider in India is the most important step for building a successful and long-term AEPS business. As demand for Aadhaar Enabled Payment System services is growing rapidly, retailers, distributors, and fintech companies need a platform that is secure, fast, and trusted by customers. Aeps india helps you offer smooth cash withdrawal, balance enquiry, mini statement, and Aadhaar-based banking services with zero downtime.

Aeps india is an AEPS Solution Provider offers the technology and platform for agents (like retailers) to offer essential banking services (cash withdrawal, deposit, balance inquiry, fund transfer) using Aadhaar for biometric authentication, enabling financial inclusion for unbanked individuals, with key players like Aeps india. Aeps india focus on reliable software, high Aeps commissions, agent support, and expanding digital banking access. 

Aeps india is a reliable AEPS service provider ensures smooth cash withdrawal, balance inquiry, and mini statement services with high success rates and minimal downtime. For retailers, distributors, fintech startups, and Aeps B2B platforms, choosing a professional AEPS software company in India directly impacts customer trust, daily transaction volume, and long-term revenue.

A trusted AEPS partner offers reliable AEPS software, fast cash withdrawal, balance enquiry, mini statement services, and seamless AEPS API integration, ensuring smooth daily operations. High uptime, strong security, NPCI compliance, and transparent commission structures are what separate the Aeps india from ordinary platforms.

Aeps india stands out as a leading AEPS Solution Provider in India, offering scalable AEPS software, white label Aeps software solutions, and full technical support for growing businesses. With easy Aeps onboarding, advanced fraud protection, and future-ready technology.

If you are planning to start or expand your AEPS service provider for business, partnering with a reliable technology provider is key. Aeps india delivers a future-ready AEPS solution that supports business scalability, improves customer experience, and ensures steady commission-based income. Start your AEPS journey today with a trusted AEPS API provider in India and take advantage of one of the fastest-growing digital banking opportunities in the country.

Take action now partner with Aeps india to start or grow your AEPS business with the most trusted Aeps solution provider in India.

FAQ – AEPS Solution Provider in India