Page 59 - Banking Finance August 2025

RBI CIRCULAR

RBI

CIRCULAR

Aadhaar Enabled Payment System – Due Dili- Scheme, 2014, prescribes the process to be followed
gence of AePS Touchpoint Operators by the banks for transfer to and claim of the amounts
transferred to DEA Fund, including submission of vari-
June 27, 2025 ous returns.
1. Aadhaar Enabled Payment System (AePS) is a payment 2. Instructions have been issued to banks from time to
system operated by National Payment Corporation of time in the form of operational guidelines since 2014.
India (NPCI) that facilitates interoperable transactions A review has recently been carried out to consolidate
using Aadhaar enabled authentication. AePS plays a and rationalise the extant instructions. The revised in-
prominent role in enabling financial inclusion. structions are provided at Annex.
2. In recent times, there have been reports of frauds 3. These instructions are issued in exercise of powers
perpetuated through AePS due to identity theft or conferred under Sections 26A and 35A of the Banking
compromise of customer credentials. To protect bank Regulation Act, 1949, and are applicable to all the
customers from such frauds, and to maintain trust
and confidence in the safety and security of the sys- banks covered under the DEA Fund Scheme, viz.,
tem, a need is felt to enhance the robustness of AePS. Commercial Banks (including RRBs, LABs, SFBs and
Accordingly, as announced in Statement on Develop- PBs) and all Co-operative Banks.
mental and Regulatory Policies dated February 08, 4. The instructions shall come into effect from October
2024, it has been decided to issue directions for 01, 2025.
streamlining the process for onboarding of AePS
touchpoint operators and strengthening fraud risk
management. Detailed instructions are placed in the Reserve Bank of India (Pre-payment Charges
Annex. on Loans) Directions, 2025
3. These directions are issued under Section 18 read with July 2, 202
Section 10(2) of the Payment and Settlement Systems
(PSS) Act, 2007 (Act 51 of 2007) and shall come into 1. Availability of easy and affordable financing to Micro
effect from January 01, 2026. and Small Enterprises (MSEs)1 is of paramount impor-
tance. However, Reserve Bank’s supervisory reviews
The Depositor Education and Awareness (DEA) have indicated divergent practices amongst Regulated
Fund Scheme, 2014 – Revised Operational Entities (REs) with regard to levy of pre-payment
Guidelines charges in case of loans sanctioned to MSEs which
lead to customer grievances and disputes. Further,
June 25, 2025
certain REs have been found to include restrictive
1. The Depositor Education and Awareness (DEA) Fund clauses in loan contracts/ agreements to deter bor-

BANKING FINANCE | AUGUST | 2025 | 53