The India Post Payments Bank (IPPB) has informed that its online Aadhaar ATM (AEPS) service allows customers to receive cash in the comfort of their homes without even visiting a bank or the nearest ATM. This service can be particularly helpful for those with hectic schedules or in faraway places, especially in rural areas. The IPPB's Aadhaar-ATM Service can help users withdraw cash from any of the Aadhaar-linked bank accounts via the Aadhaar Enabled Payment System (AEPS), says IPPB.

IPPB says the postman will be tasked to help users withdraw cash at people's doorstep. "In need of urgent cash but don’t have time to visit the bank? Worry not! With @IPPBOnline Aadhaar ATM (AePS) service, withdraw cash from the comfort of your home. Your Postman now helps you to withdraw cash at your doorstep. Avail Now!" IPPB says in a tweet.

The India Post Payments Bank is also offering other services like cash deposit, balance enquiry, Aadhaar to Aadhaar fund transfer, and mini-statement.

The AEPS allows a bank customer to use Aadhaar as his or her identity to access an Aadhaar-enabled bank account and perform basic banking transactions like balance enquiry, cash withdrawal, and remittances through a business correspondent.

Those willing to avail of the AEPS service should have a bank account with a bank participating in AEPS. Their Aadhaar should be linked to a bank account with other banks, and a transaction is completed using biometric authentication only.

In terms of withdrawal limit, IPPB, as an acquirer bank, does not put any limit on any AEPS transactions for other bank customers. However, the issuing bank maintains these limits based on customer profile and risk management practices. NPCI has set a maximum transaction amount of Rs 10,000 on a single AEPS financial transaction.

According to IPPB, if a customer has multiple accounts within the same bank linked to Aadhaar, AEPS services will work with only the primary account associated with the Aadhaar. "Customer needs to get in touch with his/her bank to specify/change the primary account linking."

Additionally, a customer having an account with IPPB can also use AEPS for withdrawing money from other bank terminals. The IPPB says there are no transactional charges levied on the customer for availing the services at access points or doorstep. However, the doorstep service charge will apply to the customer as per prevailing fees.

The Reserve Bank of India (RBI), in its bi-monthly monetary policy committee meeting in February 2024, had announced to enhance the robustness of the Aadhaar Enabled Payment System (AePS), which is operated by NPCI.

AePS enables customers to make digital payments in assisted mode. In 2023, more than 37 crore users undertook AePS transactions, and the central bank thinks it can play an important role in financial inclusion. Now, the RBI wants to streamline the onboarding process, including mandatory due diligence, for AePS touchpoint operators.

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