Page 37 - Banking Finance August 2017

ARTICLE

The NACH system provides a robust, secure and scalable Aadhaar Pay:
platform to the participants with both transaction and file Aadhaar-enabled payment system, or Aadhaar Pay, is an app
based transaction processing capabilities. It has best in class for merchants which will enable them to receive payments
security features, cost efficiency & payment performance through biometric authentication of the customer, provided
(STP) coupled with multi-level data validation facility acces- their bank accounts are linked to their Aadhaar number. The
sible to all participants across the country. biggest advantage through this method of payment is that
the customer does not need a credit or debit card, or even
Aadhaar Payment Bridge System (APBS): a smartphone.

NACH's Aadhaar Payment Bridge (APB) System, developed
A pilot was conducted in fair price shops in Andhra Pradesh
by NPCI has been helping the
where shopkeepers are accepting payments from PDS ben-
Government and Government
eficiaries to test the systems. The idea takes off from the
Agencies in making the Direct existing Aadhaar-enabled payment system (AEPS) used by
Benefit Transfer scheme a suc-
bank business correspondents (BCs) in rural areas to disburse
cess. APB System has been successfully channelizing the
and accept cash, using micro ATMs.
Government subsidies and benefits to the intended benefi-
ciaries using the Aadhaar numbers. The APB System links Unified Payments Interface (UPI):
the Government Departments and their sponsor banks on
Unified Payments Interface (UPI) is a system that powers
one side and beneficiary banks and beneficiary on the other
multiple bank accounts
hand.
into a single mobile ap-
plication (of any partici-
Aadhaar Enabled Payment System pating bank), merging

(AEPS): several banking features, seamless fund routing & merchant
payments into one hood. It also caters to the "Peer to Peer"
AEPS is a bank led model which allows online interoperable
collect request which can be scheduled and paid as per re-
financial inclusion
transaction at PoS quirement and convenience.
(MicroATM) through UPI- Features:
the Business corre-
Y Immediate money transfer through mobile device round
spondent of any bank using the Aadhaar authentication.
the clock 24*7 and 365 days.
The four Aadhaar enabled basic types of bank- Y Single mobile application for accessing different bank
accounts
ing transactions are as follows:-
Y Balance Enquiry Y Single Click 2 Factor Authentication - Aligned with the
Regulatory guidelines, yet provides for a very strong fea-
Y Cash Withdrawal
ture of seamless single click payment.
Y Cash Deposit
Y Virtual address of the customer for Pull & Push provides
Y Aadhaar to Aadhaar Funds Transfer for incremental security with the customer not required
to enter the details such as Card no, Account number
The only inputs required for a customer to do a IFSC etc.
transaction under this scenario are:- Y Bill Sharing with friends.
Y IIN (Identifying the Bank to which the customer is asso- Y Best answer to Cash on Delivery hassle, running to an
ciated)
ATM or rendering exact amount.
Y Aadhaar Number
Y Merchant Payment with Single Application or In-App
Y Fingerprint captured during their enrollment Payments.

BANKING FINANCE | AUGUST | 2017 | 37

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