---
title: "Aadhaar Enabled Payment System (AePS) Explained"
description: "AePS lets Indians withdraw cash and check balances using only an Aadhaar number and fingerprint, no card or PIN. How it differs from UPI and powers DBT."
url: "https://modeldiplomat.com/learn/glossary/aadhaar-enabled-payment-system"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Aadhaar Enabled Payment System is an Indian bank-led payment model that lets account holders perform basic banking transactions using their Aadhaar number and biometric authentication.
- How does AePS differ from UPI?
- What transactions can be performed through AePS?
- Why has AePS faced security criticism?
- How does AePS relate to Direct Benefit Transfer?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Aadhaar Enabled Payment System is an Indian bank-led payment model that lets account holders perform basic banking transactions using their Aadhaar number and biometric authentication.

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During the 2020 COVID-19 lockdown, India's Ministry of Finance disbursed relief to women Jan Dhan account holders under the Pradhan Mantri Garib Kalyan Yojana, with millions withdrawing the funds via AePS at rural Business Correspondent agents.

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