What is the Aadhaar Payments Bridge System?
6 Answers
APB or Aadhaar Payment Bridge System
https://authportal.uidai.gov.in/...
is a repository of Aadhaar number of residents and their primary bank account number used for receiving all social security and entitlement payments from various government agencies.
It requires using Aadhaar number as the primary key for all entitlement payments. This would weed out all fakes and ghosts from the system and ensure that the benefits reach the intended beneficiaries.
This benefit has an even greater ramification as more and more social security programs are moving from in-kind to in-cash subsidies.
APB Process Steps
The key steps in posting payments via APB are:
- Service delivery agency that needs to make payments to its beneficiaries (such as MGNREGA wages, scholarships disbursement, old age pension etc.) provides APB File containing details of Aadhaar number, welfare scheme reference number and the amount to be paid to its bank (called sponsor bank).
- Sponsor bank adds bank IIN (Institute Identification Number provided by NPCI to participant banks) to the APB file and uploads onto NPCI server.
- NPCI processes uploaded files, prepares beneficiary bank files and generates settlement file
- Settlement file is posted to bank accounts with RBI.
- Destination banks can download the incoming files for credit processing after the settlement file has been processed.
The Report of the Committee on Financial Inclusion chaired by Dr. C. Rangarajan, made two important observations:
- Technology has to enable the banks to go where the customer is present, instead of the other way around.
- Technology should allow interoperability among different systems adopted by different banks.
AEPS empowers the marginalised and excluded segments to conduct financial transactions (Credit, Debit, Remittances, Balance Enquiry, etc) through microATMs deployed by Banks in their villages.
AEPS Process Steps
The key steps in doing transactions via AEPS are:
- Resident provides his/her Aadhaar number, details of financial transaction sought and fingerprint impression at the microATM device.
- Digitally signed and encrypted data packets are transferred via Bank Switch to NPCI to UIDAI.
- UIDAI processes the authentication request and communicates the outcome in form of Yes/No.
- If the authentication response is Yes, bank carries out the required authorization process and advises microATM on suitable next steps.
thanks
https://www.quora.com/What-is-the-Aadhaar-Payments-Bridge-System