What is ‘Aadhaar ATM’? Even if you lose your purse, you can withdraw cash by using your thumb, this is how it works

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What is Aadhaar ATM?

There are many occasions in life when we feel trapped. Imagine, you are out for some important work and suddenly you lose your purse or wallet. Cash was gone, debit-credit cards were also gone. In such a situation, it becomes difficult to ask for a loan from someone or even reach the bank. But, technology has found an excellent solution to this problem. Now even if your wallet is left at home or lost, you can still withdraw money. For this you will only need your Aadhaar number. Yes, your Aadhar card can become your ‘ATM’. This special facility is called ‘Aadhaar Enabled Payment System’ i.e. AePS, which can prove to be your biggest help in difficult times.

What is this ‘Aadhaar based ATM’ (AePS)?

‘Aadhaar ATM’ is not a separately installed machine, but it is a payment service. Its official name is ‘Aadhaar Enabled Payment System’ (AePS). It has been developed by National Payments Corporation of India (NPCI). Its real objective is to take banking services to every corner of the country and make them very easy for every common citizen.

Under this system, you do not need any debit card or ATM PIN to withdraw money. Your Aadhaar number and your fingerprint are your identity and your password. This service is usually available through Banking Correspondents (BCs) or ‘Bank Mitras’. They use a small point of sale (PoS) or micro-ATM machine. This machine is directly linked to your bank account through your Aadhaar and allows you to make transactions.

How is your money safe?

This question is bound to come to mind that when we are neither using the card nor giving the account number, then how is this process safe? The answer lies in its functioning itself. The strongest pillar of security of AePS is ‘Biometric Identification’.

When you make a transaction, you provide your fingerprint or iris scan at the machine. This identity is only yours and no one can steal or copy it. Without your physical presence and biometric verification, no one can withdraw money from your account. It is even more secure than the ATM PIN, because the PIN can be guessed or stolen, but your fingerprint cannot. Apart from this, another special thing is that you do not even need to tell your bank account number to the operator. With this, your banking information remains completely confidential and secure.

What facilities are available?

This facility of Aadhaar is not limited to cash withdrawal only. It is a multi-purpose banking tool, which makes many of your tasks easier. You can also complete many other important tasks through AePS.

  • Balance Information: You do not need to go to the bank or ATM to know the amount in your account. You can check balance at any micro-ATM center by simply placing your fingerprint.
  • Fund Transfer: You can also easily send money from one Aadhaar-linked bank account to another Aadhaar-linked account.
  • Mini Statement: Some banks also provide the facility to withdraw mini statement through AePS.

This facility is especially a boon for rural and remote areas, where bank branches or traditional ATM machines are less. There, grocery shopkeepers or bank friends become mobile banks.

How to withdraw cash from Aadhaar

Now coming back to the same situation that your wallet is lost and you need cash immediately. This process is very straightforward and simple, which you can complete easily.

  1. Visit the centre: First of all, find a shop or center near you where AePS facility is available. This could be a grocery store, Common Service Center (CSC) or ‘Bank Mitra’ office.
  2. Provide information: Tell the operator present there that you want to withdraw cash through Aadhaar. The operator will ask you for your 12 digit Aadhaar number and the name of your bank (the bank account from which you want to withdraw money).
  3. Specify amount: Next, you’ll specify the amount you want to withdraw. The operator will enter this amount in his micro-ATM machine.
  4. Verify Identity: The next and most important step is to verify your identity. The operator will ask you to place your finger on the biometric machine (fingerprint scanner).
  5. Transaction completion: As soon as you place your finger, the system will verify your identity. Once the verification is successful, your bank will approve the transaction. The operator will give you your requested cash amount and a receipt for the transaction.

This entire process takes just a few minutes and is done without any card or PIN, just with your Aadhaar and your fingerprint.

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