UIDAI has recently announced that beneficiaries can continue using service from micro-ATMs to withdraw their LPG Subsidy and other government payments using Aadhaar Authentication.
The Supreme Court verdict had restricted usage of the 12 digit Aadhaar biometric id, and had mentioned that banks can continue with AEPS (Aadhaar Enabled Payment System) Facility uninterruptedly so that it helps beneficiaries to withdraw government schemes and LPG Subsidy at their door steps.
Aadhaar Enabled Payment System (AEPS) is a remittance service developed by the NPCI (National Payments Corporation of India), this service allows financial institutions like banks to utilize 12 digit Aadhaar Number for authentication to process the transactions. In return this service helps beneficiary to carry out transactions at their door step by using their Aadhaar based biometric authentication.
By referring to the verdict of The Supreme Court of India, the UIDAI has intimated banks to continue using the AEPS Service uninterrupted as the withdrawal of LPG Subsidy and other government schemes through Micro-ATMs comes under Direct Benefit Transfer (DBT) scheme, where the usage of Aadhaar is admissible.
The Supreme Court has stated in its verdict that the usage of Aadhaar Authentication is permissible in Direct Benefit Transfer Schemes under Section 7 of the Aadhaar Act.
Aadhaar Enabled Payment System (AEPS) mostly helps the beneficiaries from remote villages, and almost 14 Crore beneficiaries under Ujjawala and Pahal Scheme collects their Gas Subsidy in their Bank Accounts per month.
According to UIDAI statement, there are Six Lacks Villages and 1.4 Lacks Bank Branches, and many of the residence are 30 – 40 KMS away from the Bank Branches. So in these cases the beneficiaries can easily take help of Aadhaar based micro-ATMs and withdraw their money at their doorstep.
As per the reports provided by UIDAI, there are 14 Crore AEPS transactions done per month by around 8 Crore People. Same like beneficiary withdraw their LPG Subsidy, MNREGS workers can also withdraw their wages at their doorstep through AEPS micro-ATMs.
Aadhaar Enabled Payment System (AEPS) ensures that the Government Benefits which is money delivers directly to the beneficiaries and eliminates any middleman in the process.