Aadhaar-based Payment Bridge System - NPCI

 

The Aadhaar-based Payment Bridge System (APBS) is a system in India that leverages the Aadhaar biometric identification system to facilitate direct benefit transfers (DBT) from the government to the beneficiaries.

Aadhaar is a unique identification number issued by the Unique Identification Authority of India (UIDAI) to residents of India. It is linked to an individual's biometric and demographic data, including fingerprints and iris scans, making it a secure and reliable identification method.

The APBS utilizes the Aadhaar infrastructure to enable efficient and transparent electronic transfer of funds from government schemes and subsidies directly into the bank accounts of beneficiaries. It eliminates the need for intermediaries and reduces leakages and corruption by ensuring that the money reaches the intended recipients.

Here's how the Aadhaar-based Payment Bridge System works:

    Beneficiary Enrollment: Individuals need to enroll for an Aadhaar number and link it to their bank account. This process involves capturing their biometric data.

    Beneficiary Identification: When a government agency initiates a payment or subsidy transfer, they use the Aadhaar number to identify the beneficiary.

    Payment Authorization: The government agency authorizes the payment through the APBS system, specifying the Aadhaar number of the beneficiary, the amount to be transferred, and other relevant details.

    Fund Transfer: The APBS system connects with the National Payments Corporation of India (NPCI) to initiate the fund transfer from the government's account to the beneficiary's bank account.

    Confirmation and Notification: Once the transfer is complete, both the government agency and the beneficiary receive confirmation of the transaction. The beneficiary may also receive an SMS or notification on their registered mobile number.

The APBS has been instrumental in improving the efficiency and effectiveness of government welfare schemes by ensuring that subsidies and benefits are directly credited to the bank accounts of beneficiaries. It reduces the dependency on physical cash payments, minimizes leakages, and enhances financial inclusion in the country.

It's important to note that the information provided here is based on the knowledge available up until September 2021. For the most up-to-date and accurate information, I recommend referring to official government sources or the UIDAI website.

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