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Due Diligence of AePS Touchpoint Operators

Reserve Bank of India (RBI) has issued directions on due diligence of Aadhaar Enabled Payment System (AePS) touchpoint operators.

What is Aadhaar Enabled Payment System (AePS)?

Aadhaar Enabled Payment System (AePS) is a payment system in which transactions are enabled through Aadhaar number and biometrics / OTP authentication providing financial services such as cash withdrawal, cash deposit, fund transfer, and non-financial services such as mini statement and balance enquiry, etc.

AePS is a payment system operated by National Payment Corporation of India (NPCI) that facilitates interoperable transactions using Aadhaar enabled authentication. 

What is AePS touchpoint?

AePS touchpoint is the terminal deployed by acquirer banks to facilitate AePS transactions, which shall include both mobile and fixed points.

Who is AePS Touchpoint Operator (ATO)?

AePS Touchpoint Operator (ATO) is the individual onboarded by the acquiring bank who operates the AePS touchpoint.

What is the rationale behind the directions?

There have been reports of frauds perpetuated through AePS due to identity theft or compromise of customer credentials. To protect bank customers from such frauds, the directions have been issued streamlining the process for onboarding of AePS touchpoint operators and strengthening fraud risk management. 

What are the directions for onboarding and due diligence of AePS touchpoint operators?

  • The acquiring bank shall carry out due diligence of all ATOs before onboarding them. 
  • The acquiring bank shall also carry out periodic updation of KYC of ATOs.
  • In cases where an ATO has remained inactive, i.e. has not performed any financial / non-financial transaction for a customer for a continuous period of 3 months, acquiring bank shall carry out KYC of ATO before enabling him / her to transact further.
  • The acquiring bank shall monitor the activities of ATOs through their transaction monitoring systems on an ongoing basis and set operational parameters, based on business risk profile of the ATOs. 
  • Aspects such as location and type of the ATO, volume and velocity of transactions, etc. shall form part of bank’s fraud risk management framework.
  • The operational parameters regarding ATOs shall be reviewed on a periodic basis, reflecting emerging fraud trends.
  • The acquiring bank shall put in place adequate system level controls to ensure that any technological integrations like APIs are used only for enabling AePS operations.

From when shall the directions be applicable?

The directions shall come into effect from January 01, 2026.


References

Reserve Bank of India. (2025, June 27). 'Aadhaar Enabled Payment System – Due Diligence of AePS Touchpoint Operators'. Retrieved from https://website.rbi.org.in/web/rbi/-/notifications/aadhaar-enabled-payment-system-due-diligence-of-aeps-touchpoint-operators

Reserve Bank of India. (2025, June 27). 'RBI issues directions on Due Diligence of Aadhaar Enabled Payment System (AePS) Touchpoint Operators'. Retrieved from https://website.rbi.org.in/web/rbi/-/press-releases/rbi-issues-directions-on-due-diligence-of-aadhaar-enabled-payment-system-aeps-touchpoint-operators


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