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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues Direction on Aadhaar Enabled Payment System Due Diligence of AePS Touchpoint Operators

27-Jun-2025 | RBI/2025-26/63 CO.DPSS.POLC.No.S 339/02-01-001/2025-2026

Reserve Bank of India (RBI) has issued new guidelines regarding the Due Diligence of Aadhaar Enabled Payment System (AePS) Touchpoint Operators, effective from January 1, 2026. Key Highlights: 1. The Aadhaar Enabled Payment System (AePS), managed by the National Payments Corporation of India (NPCI), facilitates financial services through Aadhaar authentication. However, the rise in fraud cases has led the RBI to strengthen the due diligence requirements for AePS Touchpoint Operators (ATOs). 2. Banks, referred to as acquiring banks, must conduct thorough KYC (Know Your Customer) due diligence before onboarding any ATO, in line with the RBI's KYC Master Direction. If an ATO has already been verified as a Business Correspondent, the existing KYC can be utilised. 3. If an ATO is inactive for three consecutive months, banks are required to re-verify its KYC before permitting further transactions. 4. Banks must continuously monitor ATO activities based on location, transaction volume, and risk profile to detect and prevent fraud. 5. Banks should regularly review ATO operational parameters and establish robust fraud detection systems, particularly regarding technology integration like APIs. For more information, please refer to the official document.

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