Independent Research and Policy Advocacy

Need a more flexible AePS environment

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Abstract

While the Aadhaar Enabled Payment System (AePS) has emerged as the foundational technology enabling cash-in cash-out (CICO) across the country, efforts by bad actors to defraud banking customers through it continue to be a pressing concern. The Reserve Bank of India (RBI), having taken note, had issued (draft) directions to all banks and the National Payments Corporation of India (NPCI) regarding the onboarding and ongoing due diligence of AePS touchpoint operators. Among other things, the rules state that NPCI and acquiring banks must ensure that any AePS touchpoint operator is onboarded only by one acquiring bank.

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