RBI releases draft direction for Aadhaar Enabled Payment System (AePS) - (31 Jul 2024)
Banking
Reserve Bank of India releases the draft directions on Due Diligence of AePS Touchpoint Operators. Directions are issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems (PSS) Act, 2007. Aadhaar Enabled Payment System (AePS) is a payment system operated by National Payment Corporation of India (NPCI) that facilitate interoperable financial transactions through the Business Correspondent (BC) / Bank Mitra of any bank, using the Aadhaar authentication. AePS plays a prominent role in enabling financial inclusion.
In recent times, there have been instances of frauds perpetuated through AePS due to identity theft or compromise of customer credentials. To protect bank customers from such frauds, and to maintain trust and confidence in the safety and security of the system, a need is felt to enhance the robustness of AePS. Accordingly, as announced in Statement on Developmental and Regulatory Policies dated February 08, 2024, it has been decided to issue directions for streamlining the process for on boarding of AePS touchpoint operators and on-going due diligence. Banks and NPCI shall ensure compliance to these directions within three months from the date of issue.
The acquiring bank shall monitor the activities of AePS touchpoint operators on an ongoing basis and set operational parameters, in accordance with the following principles:
1. Transaction limits shall be set for AePS touchpoint operators based on their risk profile.
2. Transactions of AePS touchpoint operators shall be consistent with their location of operation and risk profile
Tags : AEPS DIRECTIONS RELEASE
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