Banks can continue with Aadhaar-enabled payment system, says UIDAI

A customer who wants to delink Aadhaar can go for fresh KYC, said DoT

The Unique Identification Authority of India (UIDAI) has clarified that banks can continue with Aadhaar-enabled payment system for transactions — including deposit, withdrawal, balance enquiry etc. — as the facility is part of the direct benefit transfer scheme.

The Aadhaar-enabled payment system, or AEPS, allows consumers who don’t have smartphones or debit cards to perform basic banking transactions like cash deposit, cash withdrawal, intrabank or interbank fund transfer, balance enquiry and obtaining a mini statement through biometric authentication at micro-ATMs.

There was confusion around the future of AEPS post the Supreme Court verdict, which scrapped the mandatory linking of Aadhaar number with