Aadhar-enabled Payment System

Facts for Prelims
 

What is Aadhar enabled Payment System?
 

Why it was in News: Scammers are reportedly using leaked biometric details (silicone thumbs), bypassing the need for OTPs, to siphon money from users’ bank accounts.
 

About:
 Aadhaar-enabled Payment Services (AePS) is a bank-led model, which allows online financial transactions at Point-of-Sale (PoS) and Micro ATMs through the business correspondent of any bank using Aadhaar authentication.
 The model removes the need for OTPs, bank account details, and other financial details.
 It allows fund transfers using only the bank name, Aadhaar number, and fingerprint captured during Aadhaar enrolment, according to the National Payments Corporation of India (NCPI).