Aadhaar Payment Bridge System

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Recently, a campaign called Rethink Aadhaar has published a report highlighting scams in the Aadhaar enabled Direct Benefit Transfers(DBTs).

What is the Aadhaar Payment Bridge (APB) System?

It is one of the unique payment systems implemented by NPCI, uses Aadhaar number as a central key for electronically channelizing the Government benefits and subsidies in the Aadhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries.

Why is the 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 led to electronification of a large number of retail payment transactions which were predominantly either in cash or cheque.

Key features of the APB System

• Banks can upload/download transaction files through secured web access.
• Banks can get connect to NPCI either through NPCINet or Internet.
• Transaction routing on the basis of IIN issued by NPCI.
• Transaction processing by destination banks on the basis of Aadhaar numbers.
• APB System supports ISO 20022 messaging standards.
• APB System supports multiple intraday sessions.
• APB System provides Direct Corporate Access (DCA) to Government Departments and Agencies.
• Provides online Dispute Management System (DMS).
• APB System capable to handle 10 million transactions per day.
• APB System can process both onus and offus transactions.
• APB System makes available enriched MIS to all the participants.
• APB System provides secure Clearing and Settlement process.

Benefits of 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.
• Customer not required to open multiple bank accounts for receiving benefits and subsidies of various social welfare schemes – Customer just need to open one account and seed his/her Aadhaar number in the bank account to start receiving benefits and subsidies directly into his/her Aadhaar Enabled Bank Account.

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