Last-mile banking transaction crosses +40 crore through AePS in India

By Puja Sharma

The number of Aadhaar-enabled Payment System for the last-mile banking system is expanding rapidly, as AePS served the country well during the Covid period.

“Over five crore Aadhaar authentication is taking place per day and +40 crore last-mile banking transactions are being done every month through the Aadhaar-enabled Payment System (AePS),” Dr. Saurabh Garg, CEO, UIDAI, said.

Speaking at the 16^th edition of India Digital Summit 2022, organized by IAMAI, he said the numbers are beyond five crores when we take into account offline authentication, he added, “ We wanted anytime, anywhere authentication capabilities for people who don’t want to use online authentication facility, we have brought in the offline verification system and given it a legal basis. The offline verification is free for anyone to use. Aadhaar is a public infrastructure and the goal is how we can make it accessible to all at nominal rates or free. Currently, more than 700 welfare schemes are using Aadhaar infrastructure.”

Established in 2004, the Internet & Mobile Association of India (IAMAI) is a not-for-profit industry body and the country’s only organization representing the digital services industry with over 350 Indian and multinational corporations as its members, which include established companies in diverse sectors of the digital ecosystem as well as start-ups. Its mandate is to expand and enhance the online and mobile value-added services sectors.

Over 5 crore Aadhaar authentication happening per day

“On the payments side, we have the Aadhaar-enabled Payment System for the last mile banking systems where the number is expanding rapidly. AePS has served the country well during the Covid period. Over 40 crore last-mile banking transactions are being done every month on the AePS system through 50 lakhs micro-ATMs,” Garg said.

For individual residents in India, Aadhaar authentication will always remain free. Recently, UIDAI had slashed the price for authentication to Rs 3 from Rs 20 per instance to enable entities to leverage their infrastructure for providing ease of living to people through various services and benefits.

Talking about Aadhaar 2.0, Garg mentioned that it will ensure faster automated biometric matching solutions, with a primary focus on the security of the ecosystem. He said that the authority is exploring possibilities for the usage of blockchain, quantum computing.

“We are looking at what blockchain has to offer, whether blockchain can be utilized in any manner for making decentralized-level solutions, it’s on the horizon. Cost-effective but secure Aadhaar data wall solutions, confidential computing, as a technology how we can use in authentication, are some of the possibilities we are exploring. In quantum computing, we need to look at whether there are quantum resilient security solutions,” Garg noted.

We have a robust legal framework around Aadhaar, the Data Protection Act will further strengthen the framework and so, there’s a lot of interest. Privacy concerns, data security is of paramount significance, he added.

The organisation, named Indian Banks’ Blockchain Infrastructure Co. (IBBIC), is expected to have equivalent shareholding from 10 private area banks, four public area banks, and one unfamiliar bank. This incorporates RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank, and IDFC First Bank, among others, as per the report by Grantthornton.

IBBIC, the recently consolidated substance with stakes from top banks in the nation is an expected distinct advantage for the BFSI area in India. However, the degree is presently restricted to resolving issues in exchange financing, the organization can likewise carry concentration to research, investigation, and execution of new blockchain arrangements and keep the monetary administration’s area in India at the main edge of advancement.