India Post Payments Bank will use the Aadhaar Enabled Payment Systems, or AePS, to help millions of underserved people access banking. AePS is a payment system that operates by issuing a unique identification number, it also enables an Aadhaar card owner to easily make financial transactions. It can also be used for other banking purposes like withdraws and balance checking.
With the new AePS service, India Post Payments Bank is able to drastically expand its reach. This is due to the fact that it can use the nation's Postal network to reach large numbers of people who don't normally have banking access.
The Minister of Law & Justice, Ravi Shankar Prasad, spoke on the initiative, "As the biggest Financial Inclusion initiative in the world, Pradhan Mantri Jan Dhan Yojana brought millions into the economic mainstream."
Image Credit: India Post Payments Bank