Adhaar enabled payments : Revised charges of IPPB and  compensation for fraud victims of AePS

The India Post Payments Bank (IPPB) has increased charges for the Aadhaar Enabled Payment System (AePS) service. The revised AePS Issuer transaction charges will be effective from December 1, 2022. “Any resident of India having an Aadhaar number linked to a bank account – referred to as an Aadhaar Enabled Bank Account (AEBA) – can utilise the AePS service,” NPCI said in a statement.

According to a notification on the IPPB website, up to 1 transaction is free over Non-IPPB Network (Issuer-Transactions) per month (including AePS Cash Deposit, Withdrawal, and Mini-statement).

For AePS cash withdrawal and deposit transactions, IPPB will charge a service fee of ₹20 plus GST per transaction if the free limit exceeds. For AePS mini statement, IPPB will impose a service charge of ₹5 plus GST per transaction if the free limit exceeds.

Aadhaar Enabled Payment System (AePS) is a system developed by the National Payments Corporation of India (NPCI). Banking, as well as non-banking transactions, can be performed through a banking correspondent of any bank. Under Aadhaar Enabled Payment System (AePS), the Aadhaar number is used not only to identify the beneficiary but also to authenticate transactions. The financial transactions/services include cash deposits, balance enquiry, and Aadhaar to Aadhaar fund transfers. Nonfinancial transactions like – Demographic Authentication, Best Finger Detection (BFD), and e-KYC can be done under AePS.

 To know more about AePS read:

WHAT IS AADHAAR ENABLED PAYMENT SYSTEM (AEPS)?

The National Payments Corporation of India (NPCI) has introduced detailed guidelines for banks to redress frauds perpetrated on customers and merchants where a misuse or an error in biometric data or UIDAI seeding on Aadhaar Enabled Payment System (AePS) has led to a loss of funds. The new rules effective from September 1, 2021, determine with whom financial liability rests. Whether the fraud or error resulting in a fraudulent transaction in AePS was committed by the acquirer bank, issuer bank, or any of their Business Correspondent (BC), BC agent or Customer Service Points (CSP) will be the basis of recognizing the liability. For details read the below post:

Surendra Naik

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Surendra Naik

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