Often Confused with the Term AEPS, IMPS, and BHIM: Here's a Ready Reckoner on What It Is

 

In the world of digital payments and banking, terminologies often overlap, leading to confusion among users. Three such terms that are frequently misunderstood are AEPS, IMPS, and BHIM. While they all pertain to financial transactions, they serve different purposes and have unique features. In this article, we'll delve into each term and provide a ready reckoner to help you understand what they are and how they differ.

 

AEPS (Aadhaar Enabled Payment System):

 

AEPS is a payment system that enables financial transactions using Aadhaar biometric authentication. It allows individuals to access banking services by verifying their identity through Aadhaar biometrics. AEPS supports cash withdrawal, balance inquiry, and funds transfer. This system is particularly useful in rural areas where banking infrastructure may be limited. To utilize AEPS, users need to link their Aadhaar card and bank account.

 

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IMPS (Immediate Payment Service):

 

IMPS is an instant payment service that facilitates immediate fund transfers. It allows individuals to transfer money to any bank account at any time. IMPS transactions can be initiated through various channels such as mobile banking, internet banking, and ATMs. Authentication for IMPS transactions typically involves MPIN (Mobile Personal Identification Number), OTP (One-Time Password), or internet banking credentials. IMPS provides the convenience of quick and secure money transfers, making it popular among users.

 

BHIM (Bharat Interface for Money):

 

BHIM is a mobile payment app that leverages the Unified Payments Interface (UPI) to enable seamless transactions. UPI allows users to link their bank accounts to a mobile app and perform various financial activities. BHIM offers person-to-person transfers, bill payments, and merchant payments. It supports multiple channels such as mobile apps, USSD (Unstructured Supplementary Service Data), QR codes, and UPI IDs. BHIM also provides additional features like QR code-based payments, requesting money, and checking balances. Its user-friendly interface and versatility have contributed to its widespread adoption.

 

Here is the table illustrating the difference between these products

	AEPS	IMPS	BHIM
Full Form	Aadhaar Enabled Payment System	Immediate Payment Service	Bharat Interface for Money
Purpose	Enables financial transactions using Aadhaar biometric authentication	Enables instant fund transfers	Facilitates mobile payments and transfers
Authentication	Biometric authentication using Aadhaar data	MPIN, OTP, or Internet banking credentials	UPI PIN, biometric authentication (optional)
Bank Account Linking	Linked to Aadhaar and bank account	Linked to a specific bank account	Can be linked to multiple bank accounts
Transaction Types	Cash withdrawal, balance inquiry, funds transfer	Person-to-person transfers, bill payments, merchant payments	Person-to-person transfers, bill payments, merchant payments
Availability	Requires Aadhaar card and bank account	Requires bank account and IFSC code	Requires bank account and mobile number
Transfer Limit	Varies by bank and account type	Varies by bank and transaction history	Varies by bank and transaction history
Transfer Speed	Immediate	Immediate	Immediate
Supported Channels	Micro ATMs, authorized agents	Mobile banking, internet banking, ATM	Mobile apps, USSD, QR codes, UPI IDs
Additional Features	Government subsidy disbursal, Direct Benefit Transfer (DBT)	None	QR code-based payments, request money, check balance

 

The best payment method to use in any given scenario will depend on your specific needs and preferences. Here is a brief overview of the three payment methods and when you might want to use them:

 

AEPS: AEPS is a good option if you need to make a quick and easy payment in person, especially if you are in a rural area where there may not be many other payment options available. You can use AEPS to withdraw cash, deposit money, or transfer money to another bank account, all using your Aadhaar number and biometrics.

 

IMPS: IMPS is a good option if you need to make a quick and easy online or mobile payment. You can use IMPS to transfer money to any bank account in India, 24x7. IMPS is also a good option if you need to make a large payment, as the transaction limit is up to INR 2 lakh.

 

BHIM: BHIM is a good option if you are looking for a simple and easy-to-use payment app. BHIM is a UPI-based app, so you can use it to make payments using your Aadhaar number, mobile number, or virtual payment address. BHIM is also a good option if you want to take advantage of the government's cashback and rewards schemes for using UPI.

 

Ultimately, the best way to decide which payment method is right for you is to consider your specific needs and preferences. If you are still unsure, you can always consult with your bank or financial advisor.