Reserve Bank of India (RBI) directive for Aadhaar Enabled Payment System (AePS)

AePS is a secure payment system that allows customers to carry out basic financial transactions using their Aadhaar number and biometric authentication. It is facilitated by an AePS Touchpoint Operator (ATO) who is a trained individual that facilitates AePS transactions using Aadhaar authentication in rural areas.

RBI published a directive on 27th June 2025 mandating enhanced monitoring Of AePS ATMs. Key objectives of the directive include the below

Implementation of Know Your Customer (KYC) processes
Stricter controls for Application Programming Interface (API)
Grievance redressal management
Review integration of relevant architecture with Enterprise Fraud Risk Management System (EFRMS) and Security Information and Event Management (SIEM)

KPMG in India supports banks in meeting adherence to RBI’s AePS directives through consulting, implementation assistance and independent reviews of ATO onboarding, KYC processes, fraud controls, and system-level safeguards. Via our collaboration with various regulated entities, banks are supported in strengthening due diligence, enhancing transaction monitoring, and aligning with RBI’s 2025 requirements - building trust and resilience across the AePS operations.