How AePS Empowers Rural Banking and Digital Transactions

India saw over 20.01 billion Aadhaar Enabled Payment System (AePS) transactions in August 2025. This shows deep rural penetration and adoption of this banking technology across remote communities. AePS service operates as a bank-led model developed by NPCI, which allows online transactions at Micro ATM/Kiosk/mobile devices through authorized correspondents or merchants. Additionally, it provides a debt facility for rural households to boost financial inclusion in India.

AePS makes banking services available locally, creating opportunities for both customers and merchants in underserved communities. So, continue scrolling to learn what is AePS in banking and how AePS empowers rural banking and creates opportunities for earning.

What Challenges Does Rural Banking Face in India?

In 2025, despite the government’s efforts to expand banking services in rural India, many villages still lack an ATM or a nearby branch. This hurdle in accessing banking services forces people to travel long distances. Other challenges include:

• Low digital literacy and limited internet connectivity stop people from using mobile banking or UPI services
• Missing identity papers or incomplete Aadhaar-bank links can block account access and slow benefit transfers.
• Intermittent cash supply at branches and ATMs affects daily business and household needs in villages.

What Is AePS Debit Facility and How Does It Work?

AePS debit facility lets a person withdraw cash from their Aadhaar-linked bank account using biometric authentication at a local merchant. AePS service means the merchant can use a smartphone and a fingerprint device to authenticate, and the bank can settle the debit after UIDAI verifies the biometric record. The National Payments Corporation of India (NPCI) oversees the AePS, which verifies account holders’ identities through biometric checks.

Let us discuss the step-by-step breakdown of how the system works:

• For banking services, customers bring their Aadhaar-linked bank account to a nearby merchant or business correspondent.
• The merchant verifies the customer’s identity using a fingerprint scanner connected to a secure banking platform.
• Without the need for cards or PINs, the system performs the transaction after authenticating the customer’s biometric information.
• By verifying the customer’s biometric data, the Aadhaar Enabled Payment System allows merchants to take payments from clients of any bank.
• Customers receive printed receipts as evidence of their banking activity, and transactions are finished in a matter of minutes.

How Does AePS Service Fill the Gaps in Rural Banking Infrastructure?

With 29% of rural households still lacking easy banking access, AePS bridges the gap between unbanked populations and financial services. It places banking services at neighbourhood shops, bringing cash access and basic banking without long travel for many people in villages. Here’s how it addresses infrastructure gaps effectively:

Brings Banking to the Doorstep

Local shops become banking points where customers can withdraw money and check balances anytime during shop hours. This eliminates dependency on distant bank branches or ATMs that may be out of service.

Works Across All Banks

Since AePS is compatible with all of India’s major banks, users can get services from any bank as long as their account is linked to Aadhaar. This flexibility solves the problem of bank-specific limitations in rural areas.

Requires Minimal Setup

Businesses can begin providing financial services from their stores with just a smartphone, an internet connection, and a fingerprint scanner. Even in rural areas, banking infrastructure is possible due to this inexpensive setup.

How to Get Started with Finkeda’s AePS Services?

Finkeda supports rural entrepreneurs through training programs and marketing materials to help them start earning commissions. Let us discuss the steps to become a certified Finkeda partner and launch an AePS service business:

• Basic Requirements: Submit identity documents, address proof, and business registration papers to get verified and approved for the service.
• Equipment Setup: Get a fingerprint scanning device approved by UIDAI that plugs into computers or Android phones through USB or OTG connections.
• Shop Preparation: Merchants can use their kirana store as a banking point that serves customers in remote areas.
• Marketing Support: Users get access to promotional materials, signage, and customer education resources to attract and serve local banking customers.

Empower the Rural Community With AePS!

AePS service has revolutionized rural banking by bringing financial services directly to village shops and eliminating the need for distant bank visits. The system empowers rural communities through simple Aadhaar-based authentication while ensuring security through biometric verification. Local merchants benefit from additional income streams while serving their communities as banking correspondents. This technology proves that banking inclusion becomes possible when services adapt to meet people where they live and work, creating sustainable economic opportunities for rural India. So, why wait? Partner with Finkeda to start providing AePS services in your region today!