How to Activate AEPS: Complete Step-by-Step Guide for 2026

In today’s fast-growing digital India, AEPS (Aadhaar Enabled Payment System) has become one of the easiest and safest ways for retailers, agents, and businesses to offer cashless banking services. Whether you’re a small shop owner or running a B2B portal, learning how to activate AEPS in 2026 can help you earn extra income and provide secure financial services in your area.

To activate AEPS, you must first link your Aadhaar number to your bank account. Then, visit a service point (like a bank’s business correspondent or a merchant kiosk), provide your Aadhaar number, and use your biometrics (fingerprint or iris scan) to authenticate. This process allows you to perform transactions like cash withdrawal, balance inquiry, and fund transfers directly from your Aadhaar-linked bank account. 

AEPS allows users to perform cash withdrawal, balance inquiry, mini statements, and fund transfers using just their Aadhaar number and fingerprint no debit card or bank visit required. With government-approved technology and seamless integration AEPS has become a trusted digital payment system across India.

In this complete guide, we’ll explain how to activate AEPS step-by-step, what documents you need, and how it can help you earn commissions and grow your digital service business. Whether you’re new to fintech or already running a recharge or bill payment business, Noble Web Studio makes AEPS activation quick, safe, and hassle-free.

What is AEPS Activate

To activate AEPS (Aadhaar Enabled Payment System), you must have your bank account linked to your Aadhaar number. You can then use this system at a Micro-ATM or a Business Correspondent (BC) point by providing your Aadhaar number and authenticating with your biometric data (like a fingerprint or iris scan). The activation process for the service is completed through your bank; for a cash withdrawal, you simply use your biometrics at a Micro-ATM. 

How AEPS Works After Activation

After activation, you can use AEPS (Aadhaar Enabled Payment System) by visiting a business correspondent or micro ATM providing your Aadhaar number and bank name, and then authenticating your identity with a biometric like a fingerprint. Once authenticated, you can perform various transactions, such as cash withdrawal, deposit, balance inquiry, or fund transfer, with the transaction processed instantly by your bank. 

How AEPS works after activation

• Visit a point of sale: Go to a bank’s business correspondent or a merchant who has a micro-ATM device.
• Provide your details: Give the agent your Aadhaar number and the name of your bank.
• Select transaction type: Choose the transaction you want to make, such as cash withdrawal, cash deposit, balance inquiry, or fund transfer.
• Authenticate biometrically: The agent will ask you to authenticate your identity using a fingerprint or iris scan on the device.
• System verification: The system verifies your biometric data against the Aadhaar database to confirm your identity.
• Transaction processing: Once verified, the transaction request is sent to the bank’s server for processing.
• Receive confirmation: If successful, the transaction is completed, and you will receive a receipt from the agent and an SMS confirmation from your bank. 

Read Blog : Best AEPS Service Providers in India 2025: Everything You Need to Know

How to activate AEPS

To activate AEPS, you first need to ensure your Aadhaar is linked to your bank account. Then, visit an AEPS service point (like a banking correspondent or micro-ATM kiosk). At the service point, provide your Aadhaar number, select your bank, choose the transaction, and complete the process with a biometric authentication like a fingerprint scan. 

Step 1: Link Aadhaar to your bank account

• If your Aadhaar is not already linked, complete this process through your bank’s branch, internet banking, mobile banking, or ATM. 

Step 2: Find an AEPS service point 

• Go to a banking correspondent, customer service point (CSP), or a micro ATM kiosk that supports AEPS. These are often located in local shops or post offices. 

Step 3: Initiate the transaction 

• Inform the Noble web studio that you want to use AEPS.
• Provide your Aadhaar number.
• Select your bank from the list.
• Choose the type of transaction you want to perform (e.g., cash withdrawal, balance inquiry, fund transfer). 

Step 4: Complete biometric authentication 

• Place your finger on the biometric scanner for fingerprint verification, or use an iris scan if available.
• This step authenticates the transaction. 

Step 5: Finish the transaction

• Follow any remaining prompts to finalize your transaction.
• Keep the receipt or confirmation for your records. 

Why You Should Activate AEPS in 2025

Activating the Aadhaar Enabled Payment System (AEPS) offers significant benefits primarily centered on accessibility, security, and financial inclusion, especially in remote areas. 

Key Benefits of Activating AEPS

• Enhanced Financial Inclusion: AEPS provides access to basic banking services for millions in underserved or rural areas where traditional bank branches and ATMs may be limited.
• Convenience and Accessibility: Users can perform a range of transactions using only their Aadhaar number and biometric data (fingerprint or iris scan) at any AEPS-enabled micro-ATM or banking correspondent’s kiosk. This eliminates the need for physical debit cards, PINs, smartphones, or even an internet connection for the user.
• Enhanced Security: Transactions are highly secure as they rely on unique, Aadhaar-based biometric authentication, which is difficult to replicate, reducing the risk of fraud associated with lost cards or stolen PINs.
• Interoperability: The system is inter-operable across different banks, meaning a customer of any bank can use the AEPS services at any other bank’s AEPS-enabled touchpoint.
• Government Benefit Disbursement: AEPS facilitates the transparent and efficient direct transfer of government entitlements, subsidies, and pensions (e.g., NREGA, social security) into the beneficiaries’ accounts, reducing middlemen and leakages.
• Basic Banking Services: It allows users to perform essential banking functions such as cash withdrawals, cash deposits, balance inquiries, money transfer (Aadhaar to Aadhaar), and obtain mini statements.
• Cost-Effectiveness: For banks, AEPS is a cost-effective solution for expanding their reach into rural areas without incurring the substantial expenses of building and maintaining physical branches.
• Empowers the Underprivileged: The simple, user-friendly nature of the system, which requires no technical knowledge or the ability to read or write, makes it a valuable tool for empowering the underprivileged and less tech-savvy sections of society. 

Activating AEPS provides a seamless, secure, and accessible bridge to the formal banking system for a vast population, contributing significantly to India’s digital economy goals. 

How to Use AEPS After Activation

To use AEPS after activation, visit a service point, provide your Aadhaar number and bank name, select the transaction type (like cash withdrawal, balance inquiry, or fund transfer), and use your biometrics for authentication. The transaction is then processed in real-time. 

Step-by-step guide to using AEPS

1. Go to a service point: Visit a banking correspondent, micro ATM, or other AEPS-enabled outlet, such as a local shop or post office.
2. Provide your details: Inform the Noble web studio of your Aadhaar-linked bank name and your Aadhaar number.
3. Select transaction type: Choose the service you need, such as cash withdrawal, balance inquiry, fund transfer, or deposit.
4. Authenticate: Place your finger on the biometric scanner to verify your identity through fingerprint or iris scan.
5. Complete the transaction: Enter the transaction amount if required, and follow the prompts.
6. Receive confirmation: Collect the receipt and keep it for your records. 

Read Blog : Why Your Business Needs AEPS Software Integration

Why AEPS Activation is Important in 2025

Activating Aadhaar Enabled Payment System (AEPS) is important because it provides a secure, accessible, and simple way to conduct essential banking transactions, particularly for individuals in remote or underserved areas with limited access to traditional banking infrastructure. 

Key reasons for AEPS activation include:

• Promoting Financial Inclusion: AEPS helps integrate unbanked and underbanked populations into the formal financial system, allowing people in remote areas to access services through local agents or micro-ATMs.
• Enhanced Security: Transactions use biometric data linked to the Aadhaar number, offering a secure method that minimizes risks associated with physical cards.
• Convenience and Accessibility: AEPS simplifies banking by removing the need for cards, PINs, smartphones, or internet access; users only need their Aadhaar number and biometric verification.
• Access to Essential Services: Activation enables basic banking tasks like cash withdrawals, deposits, balance checks, mini-statements, and Aadhaar-to-Aadhaar fund transfers.
• Efficient Government Benefit Disbursement: The system facilitates direct and transparent transfer of government benefits and subsidies to beneficiaries, reducing intermediaries.
• Interoperability: AEPS allows online, interoperable financial transactions at any micro-ATM or PoS terminal of any bank using Aadhaar authentication, providing banking flexibility across India.
• Empowerment: It helps individuals with limited digital literacy or those who face difficulties with reading or writing to manage their finances and participate in the digital economy. 

Benefits AEPS Activation

AEPS (Aadhaar Enabled Payment System) activation provides benefits like financial inclusion, convenience, and enhanced security. Users can conduct banking transactions like cash withdrawals, deposits, and balance inquiries using only their Aadhaar number and biometrics, which is especially beneficial for those in remote areas. The system also allows for secure government benefit disbursements. 

Key benefits of AEPS activation

• Financial Inclusion: AEPS extends banking services to remote and rural areas where traditional banks are not easily accessible. It enables people, including farmers and daily wage earners, to access financial services through local banking correspondents.
• Convenience: It offers a wide range of services without the need for a debit card or PIN, including cash withdrawals, deposits, balance inquiries, and fund transfers.
• Security: Biometric authentication (fingerprint or iris scan) linked to your Aadhaar number makes transactions highly secure, reducing the risk of fraud compared to PIN-based systems.
• Government benefit delivery: The government can use AEPS to directly deposit subsidies and social security payments into citizens’ accounts, ensuring quick and efficient delivery.
• Ease of use: The system is simple to use and does not require literacy, as it relies on biometric authentication.
• Emergency access: In situations like natural disasters, AEPS provide access to cash even if bank branches are closed. 

Read Blog : Features to Look for When Integrating AEPS Solutions

Features AEPS Activation

AEPS (Aadhaar Enabled Payment System) activation involves basic banking services like cash withdrawal, deposit, balance inquiry, and mini-statement, all secured through biometric authentication and interoperability across multiple banks. Key features include high security, ease of use, financial inclusion for underbanked populations, and the ability to receive government disbursements. 

Core features

• Biometric authentication: Uses fingerprints or iris scans for secure, cardless transactions.
• Interoperability: Allows transactions across different banks without needing a card for each one, as long as the accounts are Aadhaar-linked.
• Basic banking services: Users can perform cash withdrawals, deposits, balance inquiries, and view mini-statements.
• Fund transfers: Enables Aadhaar-to-Aadhaar fund transfers.
• Financial inclusion: Provides access to banking services in remote areas and for those with limited traditional banking access. 

Security and accessibility

• High security: Relies on the robust security of Aadhaar biometrics, making it difficult for fraudsters to use the system.
• Ease of use: Requires only the Aadhaar number and biometrics, making it simple for users with basic digital literacy.
• Agent-based transactions: Transactions are conducted through a network of banking correspondents or merchants, promoting last-mile banking. 

Other functionalities

• Government scheme disbursements: Facilitates the direct transfer of government benefits like pensions and MNREGA wages.
• Real-time processing: Transactions are processed in real time with instant confirmation. 

Eligibility and Documents Required for AEPS Activation

To activate AEPS, you must be at least 18 years old, have an active bank account linked to your Aadhaar, a PAN card, and a mobile number. Required documents include your Aadhaar card, PAN card, bank account details (including IFSC code), and a passport-sized photograph. You will also need a compatible biometric device and a reliable internet connection. 

Eligibility requirements

• Age: At least 18 years old.
• Bank Account: An active bank account linked with your Aadhaar number and a participating bank.
• Mobile Number: A functional mobile number that is linked to your Aadhaar number. 

Required documents and equipment

Identification:

• Aadhaar Card
• PAN Card
• Recent passport-sized photograph

Bank Information:

• Bank account number
• Bank’s IFSC code

Photographs:

• A recent passport-sized photograph

Technical:

• A UIDAI-certified biometric device (fingerprint scanner)

Technical:

• Biometric Device: A UIDAI-certified fingerprint scanner (also called an RD device).
• Internet: A stable internet connection.
• Device: A smartphone or computer to access the portal. 

Contact Information:

• A working email address 

Read Blog : How AEPS B2B Software Helps Businesses Earn More Commission

Step-by-Step Guide to Activate AEPS Service

To activate the AEPS service, you must first link your bank account to your Aadhaar number. Then, go to an AEPS service point, provide your Aadhaar number, and authenticate your identity using biometric verification (fingerprint or iris scan). You can then perform various transactions like cash withdrawal, balance inquiry, or fund transfers. 

Registration process

Step 1: Link your bank account to Aadhaar 

• Ensure your bank account is linked with your Aadhaar number. You can do this online, through your bank’s mobile app, or by visiting a branch. 

Step 2: Visit an AEPS service point 

• Locate a banking correspondent or a merchant point that provides AEPS services, such as a local shop or a dedicated service center. 

Step 3: Provide your details 

• Inform the Noble web studio you want to use AEPS.
• Provide your Aadhaar number and select your bank’s name from the displayed options. 

Step 4: Authenticate the transaction 

• Place your finger on the biometric scanner for fingerprint verification. This is a mandatory security step.
• You may also need to provide a PIN or OTP for an additional layer of security, depending on your bank’s process. 

Step 5: Complete your transaction

• Select the type of transaction you wish to perform, such as cash withdrawal, cash deposit, balance inquiry, or mini-statement.
• Follow the on-screen or verbal prompts to complete the transaction.
• Collect your receipt or confirmation message upon successful completion. 

How to use the service as a customer

1. Visit an AEPS service point: Find a banking correspondent or kiosk that offers AEPS services.
2. Provide your Aadhaar number: Give your Aadhaar number to the Noble web studio.
3. Authenticate biometrically: Place your finger on the biometric scanner for verification.
4. Select your transaction: Choose your transaction type, such as cash withdrawal, balance inquiry, or fund transfer.
5. Complete the transaction: Follow the prompts to finalize the transaction and receive a receipt. 

Tips to Grow Your AEPS Business After Activation

To grow your AEPS business after activation, focus on increasing customer foot traffic and transaction volume through diversified service offerings, strategic marketing, and by providing excellent, reliable customer service. 

Expand Service Offerings

• Integrate Value-Added Services: Beyond basic AEPS functions (cash withdrawal, balance inquiry, mini-statements), integrate other services like mobile recharges, utility bill payments (BBPS), and domestic money transfers (DMT) through your AEPS platform. This makes your location a one-stop shop for financial needs, attracting more customers and increasing your potential commission earnings.
• Offer Micro-ATM Services: Consider adding a Micro ATM device, which allows customers to withdraw cash using debit cards, catering to those who prefer this method or have non- Aadhaar-linked accounts. 

Effective Marketing and Customer Acquisition

• Strategic Location: Set up your service point in a location with high foot traffic or in semi-urban and rural areas where traditional bank access is limited, as the demand for local banking services is high there.
• Local Promotion: Use offline marketing methods such as posters, banners, and flyers around your shop, local markets, and near government offices to inform the community about the convenience and benefits of your AEPS services.
• Digital Presence: Leverage social media platforms like WhatsApp and Facebook to reach a wider audience and promote your services.
• Customer Education: Clearly explain to customers how AEPS works and its benefits (e.g., no need for cards or PINs, secure biometric authentication) to build trust and encourage adoption.
• Offer Incentives: Attract new and repeat customers by providing small incentives, discounts, or loyalty programs for using your AEPS services. 

Operational Excellence and Trust Building

• Maintain Sufficient Cash Liquidity: Always ensure you have enough physical cash on hand to handle cash withdrawal requests efficiently. This is crucial for building customer trust and ensuring smooth operations.
• Provide Excellent Customer Service: Offer fast, friendly, and reliable service. Promptly address any customer queries or transaction issues to foster trust and loyalty, which leads to positive word-of-mouth referrals.
• Ensure Security and Compliance: Consistently follow all regulatory guidelines from the NPCI and RBI. Adhere to strong security measures, as secure transactions are paramount to building customer confidence.
• Choose a Reliable Service Provider: Noble web studio is a reputable AEPS provider that offers a high transaction success rate, robust security, real-time settlements, and reliable 24/7 customer and technical support. 

Scaling Your Business 

• Leverage Technology: Utilize an AEPS software or app with features like real-time transaction tracking, reporting, and analytics to monitor performance and identify areas for improvement.
• Build an Agent Network (if applicable): If your business model allows, recruit and train other local retailers or agents to expand your reach into new areas, earning commissions on their transactions.
• Stay Updated: Keep abreast of the latest AEPS policies, regulations, and technological advancements (e.g., face authentication) to remain competitive and compliant. 

Choosing the Right AEPS Service Provider

Noble web studio is the right AEPS service provider, prioritize regulatory compliance and security by verifying NPCI and RBI certifications. Evaluate a Noble web studio reliability and performance based on their transaction success rate and uptime. Also, consider factors like a user-friendly interface, competitive commission structure, responsive customer support, and additional features such as multi-bank support and other value-added services. 

Key factors to consider

Regulatory Compliance and Security:

• Ensure the Noble web studio is certified by the National Payments Corporation of India (NPCI) and adheres to Reserve Bank of India (RBI) guidelines.
• Look for robust security measures, including encryption and secure authentication, to protect user data.

Reliability and Performance:

• Check for a high transaction success rate (ideally 98% or higher) and minimal downtime to ensure a smooth user experience.
• Consider transaction speed and fast settlement times to manage cash flow effectively.

User-Friendliness and Functionality:

• Choose a platform with an intuitive and easy-to-navigate interface for both agents and customers.
• Confirm the provider offers a wide range of essential services, including cash withdrawal, deposit, and balance inquiry.
• Evaluate if the Noble web studio supports a wide network of banks for greater customer flexibility.

Cost and Commission Structure:

• Compare commission structures carefully and ensure they are transparent, with no hidden charges.
• Understand the full Aeps cost, including any licensing fees or per-transaction charges.

Customer and Technical Support:

• Look for a Noble web studio that offers reliable, responsive customer and technical support, ideally 24/7, to resolve issues quickly.

Provider Reputation and Additional Services:

• Evaluate Noble Web Studio’s reputation by reading customer reviews and testimonials to understand their reliability and service quality.
• Consider additional features like money transfer, bill payments, and loyalty programs that could add value to your business. 

Read Blog : White Label AEPS Portal for Business: A Complete Guide 2025

Why Choose Noble Web Studio as Your AEPS Software Provider

Choosing a Noble web studio for best AEPS software is crucial because a good provider ensures secure and reliable transactions, integrates with multiple banks, offers competitive Aeps commission, provides technical support, and enables scalability to grow with your business. By selecting the Noble web studio, you can expand your reach to underserved areas, enhance customer loyalty, and create a new revenue stream. 

Key benefits of choosing a good provider

• Reliable and secure transactions: Noble web studio offers advanced security features like end-to-end encryption and fraud detection to protect data and ensure the integrity of transactions. They comply with regulatory guidelines, such as those from the NPCI and RBI.
• Seamless integration and wide coverage: Noble web studio use Aeps API that allow you to easily integrate AEPS into your existing platform or build new applications. They connect to a wide network of banks, enabling interoperability and allowing users to conduct transactions from different banks.
• Increased revenue and customer footfall: You can earn commission on every transaction processed, creating a significant revenue stream. Offering AEPS services also increases footfall from customers who might make other purchases, boosting overall sales.
• Scalability and growth: Noble web studio can scale with your business, handling a high volume of transactions efficiently. They offer Aeps solutions that support your growth, from basic services to a wider suite of financial products.
• Comprehensive services and support: Noble web studio offer additional services like recharges, bill payments, and money transfer software service, allowing you to become a one-stop-shop for customers. They also provide essential technical support, documentation, and customer service to help you troubleshoot and integrate the system smoothly.
• Financial inclusion: Noble web studio play a vital role in bringing banking services to remote and rural areas where traditional banking access is limited. This helps local communities access essential financial services and promotes digital literacy. 

Future Trends of AEPS Activation

Future trends for AEPS activation include enhanced security through AI and biometrics, deeper integration with platforms like UPI and wallets, expanded services beyond basic banking, and wider adoption in rural areas for financial inclusion. There will also be a shift towards more user-friendly, mobile-first solutions, with a focus on real-time settlements and the use of blockchain technology for greater transparency. 

Security and compliance

• AI and biometrics: Increased use of AI and advanced biometrics for fraud prevention and more secure authentication.
• Stricter regulations: Stricter rules from the RBI on KYC, operator monitoring, and technical controls, which will become effective in 2026. 

Integration and user experience

• Seamless integration: Deeper integration with digital wallets, UPI, and other digital services to create a unified financial ecosystem.
• Embedded finance: AEPS integrated into non-financial apps, making services more accessible in everyday applications.
• Mobile-first approach: Aeps Software Development of user-friendly, mobile-first interfaces to improve accessibility for users with low digital literacy. 

Service expansion

• Broader service offerings: Expansion from basic banking to include micro-loans, insurance payments, e-commerce payments, and utility bill payments.
• Increased government and private use: Expanded use for disbursing government benefits and private payments to boost financial inclusion. 

Technology and infrastructure

• Blockchain technology: Adoption of blockchain for greater transaction transparency and efficiency.
• Real-time settlements: A greater focus on real-time processing and settlement of transactions.
• Advanced admin dashboards: Aeps Development of more powerful and customizable Aeps admin software for managing agents and transactions. 

Adoption and outreach

• Wider geographic reach: Continued efforts to expand AEPS services to rural and underbanked areas to further financial inclusion. 

Conclusion

Activating AEPS (Aadhaar Enabled Payment System) in 2026 is one of the smartest ways to start your journey in digital banking and rural fintech services. With just a few simple steps, you can become an AEPS agent and begin offering services like cash withdrawal, balance inquiry, mini statements, and Aadhaar-to-Aadhaar money transfers to your customers. This not only helps in financial inclusion but also builds a new source of income for retailers and entrepreneurs.

To activate AEPS, you first need to ensure your bank account is linked with your Aadhaar number. Once linked, you can perform transactions by visiting an AEPS-enabled service point, providing your Aadhaar number, and completing the transaction through biometric authentication, like a fingerprint scan. 

By partnering with Noble Web Studio, a trusted AEPS Software Provider in India, you get complete support from AEPS activation to integration and technical assistance. Their advanced AEPS Software Solution ensures smooth performance, high security, and easy transaction management.

If you’re ready to activate AEPS services and take your business to the next level, connect with Noble Web Studio today and get a ready-to-integrate AEPS API solution designed for speed, security, and success.

Frequently Asked Questions (FAQ)