AADHAAR PAYMENT BRIDGE SYSTEM-FAQ

AADHAAR PAYMENT BRIDGE SYSTEM-FAQ

1) What is Aadhaar Payment Bridge (APB) System?

It is a unique payment system implemented by National Payments Corporation of India (NPCI), which uses Aadhaar number as a central key for electronically channelizing the Government subsidies andbenefits in the Aadhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries.

It is a payment system based on Aadhaar numbers issued by UIDAI & IIN (Institution Identification

Number) issued by NPCI. APB System is used by the Government Departments and Agencies for the

transfer of benefits and subsidies under Direct Benefit Transfer (DBT) scheme launched by

Government of India.

2) Why is Aadhaar Payment Bridge (APB) System required?

The APB System sub-serves the goal of Financial Inclusion and provides an opportunity to the

Government to attempt financial re-engineering of its subsidy management program. The

implementation of APB System has also lead to electronification of a large number of retail payment

transactions which were predominantly either in cash or cheque.

3) What are the benefits of Aadhaar Payment Bridge (APB) System?

• Eliminates inordinate delays, multiple channels & paper-work involved in the existing system.
•  Transfers benefits & subsidies in a seamless & timely manner and directly into the Aadhaar
• Enabled Bank Account.
•  In case of change in bank account, customer is not required to convey the bank account details
• or change in bank details to the Government Department or Agency.

Continue Reading:http://www.npci.org.in/documents/FAQs_on_APBS_for_Banks1.pdf