INTRODUCTION TO DIRECT BENEFIT TRANSFER

TerminologiesDBT: The Direct Benefits Transfer (DBT) programme envisages a switch from thepresent electronic transfer to bank accounts of the beneficiary to transfer of benefits directly to Aadhaar seeded bank accounts of the beneficiaries.

Aadhaar Payments Bridge (APB) – Aadhaar Payments Bridge (APB) is a system that facilitates seamless transfer of all welfare scheme payments to beneficiary residents’ Aadhaar Enabled Bank Account (AEBA)

Micro-ATM – A standard handheld device for BC-based transactions capable of using UIDAI’s authentication system

Aadhaar Enabled Payments System (AEPS) – System that leverages Aadhaar online authentication and enables Aadhaar Enabled Bank Accounts (AEBA) to be operated in anytime-anywhere banking mode through MicroATMs

Interoperability Beneficiary can withdraw from BC/CSP of any bank

1111 2222 3333

Direct Benefit Transfer

Link Aadhaar Aadhaar Enabled Bank Accounts (AEBA)Aadhaar Enabled Payment System (AEPS)

Aadhaar Payment Bridge(APB)

1. Digitize data2. Link Aadhaar

1. Open / link AEBA2. Appoint BCs and roll out AEPS

1. Enroll for Aadhaar2. Provide Aadhaar to agencies/bank

APB Process Flow

Preparatory/One-Time Steps

• Government Departments: Digitize Beneficiary database and Seed Aadhaar numbers. This will clean up databases and make departments ready to use APB

• Banks: Open bank accounts or link existing accounts with Aadhaar number. Populate NPCI’s mapper (Aadhaar No – Bank ID)

• NPCI: Maintain the Mapper (for enabling inter-bank transactions)

Legends:

Aadhaar Enabled Direct Benefit TransferGovernment

Departments / User Agency

Banks Central Mapper / NPCI

Ensure digitized/electronic database of beneficiaries

Seed Aadhaar to clean up databases and act as

financial address

Generate payment advise file – Aadhaar no &

amount to be transferred

Electronically share file with the Sponsor bank of

Department

Receive confirmation from Sponsor bank on transfer

status / further action

All Banks communicate Aadhaar no of all AEBA to

Central Mapper

Sponsor Bank posts payment advise file to

Central Mapper for all OFF-US transactions

Sponsor Bank updates Department and takes corrective action, if any

Maintain an updated Central Mapper and

Aadhaar Payment Bridge (APB)

Facilitate transfer/ settlement across banks

Update Sponsor Bank of status & failures, if any

Resident

Open/Link Aadhaar Enabled Bank Account

(AEBA) with any bank of choice

Use Aadhaar authentication (AEPS) or

other channels to withdraw money

One-time activities

Recurring activities

Advantages of APB to Departments• Removes fakes/ duplicates from the beneficiaries list

leading to savings• Eases the entire process for transferring benefits as the

Govt. just needs to know the Aadhaar numbers of the beneficiaries without seeding bank account details in every scheme database

• Ensures Scalability as each scheme does not require to populate their database with bank account details. APB is a platform

• Bank account changes do not affect the transfer systems for various schemes

• Resident-centric view of payments under various schemes. This will enable weeding out those people who may be availing LPG as well as Kerosene subsidy and benefits of multiple schemes.

• Digital audit trail & Transparency

Advantage of APB to Beneficiaries

• No need to open multiple accounts. Just open one and link it to Aadhaar.

• Residents more comfortable in disclosing only the Aadhaar number to Govt. Agencies ( e.g. LPG Dealers) rather than bank account details

• In case of change in bank account, resident does not need to convey account details or change in bank details to each department that he deals with

Prerequisites for implementation of APB• Sponsor Bank sign-up with NPCI as APB

• User Dept forwards the application for participation in APB to NPCI through their Sponsor Bank ( Registration form is signed by both User Dept and Sponsor Bank)

• Finalize Scheme Reference number so that it fits into APB file format structure (Limit of 13 digits)

• Finalize APB file Format structure along with Sponsor Bank

• Beneficiaries must have Core Bank Account. All Banks must ensure migration of accounts to CBS

1111 2222 3333

Pension

MGNREGA

Scholarship

xxxxx

----- -----

Radha 111122223333

xxxxx

yyyyy----- -----

Radha 111122223333

xxxcccc----- -----

Radha 111122223333

Bank

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1. Aadhaar to de-duplicate databases

4. Withdraw from any MicroATM at the

doorstep

2. Aadhaar as KYC to open bank account

Aadhaar Payment Bridge

3. Aadhaar as a payment address

5. End to end auditability and transparency

End to End DBT Process Flow

End to End DBT in LPG

End to End DBT in LPG

DBT Transaction Summary (A.P.)Month

Transactions (No.s) Amount (Rs.)Major Schemes

Successful Failed Total Successful Failed Total

Jan,2013 1,012 0 1,012 2,84,493 0 2,84,493 MNREGA,SSP,JSY,NCLP

Feb, 2013 2271 43 2,314 10,85,916 43 10,85,959 NCLP

Mar, 2013 1490 0 1,490 6,80,867 0 6,80,867 NCLP, Minorities

Apr, 2013 1625 51 1,676 49,12,130 1,52,700 50,64,830 Post Metric -Minorities

May, 2013 4541 50 4,591 36,27,057 70,514 36,97,571 NCLP, Minorities, JSY, NCLP

June, 2013 108 4 112 1,08,000 4,000 1,12,000 Post Metric -Minorities

July, 2013 265081 5343 270424 3,60,21,060 16,50,014 3,76,71,074 MNREGA& Pensions

Aug, 2013 267104 532 267636 1,21,92,848 2,54,513 1,24,47,361 MNREGA& Pensions, JSY, NCLP

Total 5,43,232 6,023 5,49,255 5,89,12,371 21,31,784 6,10,44,155  

AEPS -TerminologyIssuer Identification Number : The IIN will be a six digit number which will be allotted to a bank upon an application to NPCI from the Bank seeking IIN for AEPS

On-US Transaction: An intrabank (On-us) transaction is one where an Aadhaar initiated transaction has effects only in accounts within one and the same Bank and does not necessitate an interbank settlement

Off-US Transaction: An interbank (Off-us) transaction is one where there is

movement of funds from one Bank to another necessitating an interbank

settlement.

Issuer Bank: Beneficiary’s Bank

Acquirer Bank: BC’s Bank

AEPSThe key steps in doing transactions via AEPS are:• Resident provides his/her Aadhaar number, details of

financial transaction sought and fingerprint impression at the microATM device.

• Digitally signed and encrypted data packets are transferred via Bank Switch to NPCI to UIDAI.

• UIDAI processes the authentication request and communicates the outcome in form of Yes/No.

• If the authentication response is yes, bank carries out the required core bank authorization process and advises MicroATM on suitable next steps.

AEPS Transactions

The four Aadhaar enabled basic types of banking

transactions are as follows:- • Cash Withdrawal • Cash Deposit • Aadhaar to Aadhaar Funds Transfer • Balance Enquiry

Convenient Cash Withdrawal Through AEPSBeneficiary approaches a BC of any Bank with her Aadhaar number

BC feeds the Aadhaar number, fingerprints and amount in the micro-ATM

Aadhaar server authenticates the ID of the resident.

After successful Aadhaar authentication, beneficiary can carry out the transaction

4. Authenticate and execute

2. Money transfer instruction + biometrics

Convenient cash withdrawal

19

Resident - RamUID 2563 8564 4663

BC (Kirana, SHG, PO etc))With Micro-ATMUID: 7233 5968 3094

TransferMoneyFrom UID 2653 8564 4663To UID 7233 5968 3094Amount 300

Ram’s bank a/c

BC’s bank a/c

NPCI switch

Authentication

1. Withdrawal request

3.NPCI request

6. Debit

7. Credit

8. Info- IVRS/ SMS

9. Cash

Benefits of AEPS• Beneficiary can receive money at doorstep

• Interoperable system ensures that customer is not tied to one bank’s BC

• No need for banks to separately capture biometrics and develop their own biometric and de-duplication systems

• AEPS is not a substitute for Authentication as beneficiary can withdraw money from any mode

Prerequisites for AEPS• Beneficiaries must be enrolled for UID and in receipt of UID

• Beneficiary must have an Aadhaar enabled bank account

• User (Welfare) Dept must seed its database with UID

• Beneficiary’s bank account database must be seeded with UID

• Ensuring STQC certification/UIDAI Compliant of present MicroATM Devices

• Organizing BFD Camps for beneficiaries to identify Best finger for authentication

• Train CSP/BC to operate MicroATMs

• Conduct test file transfer to selected sample of beneficiaries i.e. transfer of funds from User Dept to actual beneficiary through APB (Aadhaar Payment Bridge System).

• Conduct test of Balance Enquiry for selected sample of beneficiaries to check End to End connectivity i.e. Connectivity between MicroATM, Bank Switch & UIDAI needs to be verified.

AEPS Checklist

• Banks need to sign the Authentication User Agency (AUA) agreement with UIDAI. Upon signing they shall be given the AUA code and license keys.

• Banks need to have a Financial Inclusion switch/ server or integrate the FI server with their ATM switch in such a way that all AEPS transactions are real time and in the messaging format specified in our Interface specifications

• Banks must ensure that all their Financial Inclusion Accounts in CBS (to enable multiple channel access Mobile, ATM & MicroATM managed by BCs)

• Banks need to have Identify a distinct field in CBS for Aadhaar number seeding (alternatively mapping to be kept outside CBS for account resolution)

• MicroATM Certification by STQC- http://www.stqc.gov.in/sites/upload_files/stqc/files/POS-Device-Certification-ver-0.6.pdf.

• Please refer to http://www.npci.org.in/documents/AEPS_On_Boarding.pdf

AEPS Transaction Summary

AUA District AEPS

Transactions

Amt Disbursed (Rs.)

ICICI Bank

East Godavari 92,665 76,98,660Kadapa 32,432 84,88,900

Hyderabad 75,559 2,25,60,600Karimnagar 9,000 21,81,000

Axis Bank

Chittoor 94,487 2,45,94,883Anantapur 50,845 1,32,39,327

Ranga Reddy 5169 14,48,000

Dept of Post

Chittoor 1352093 751786669East

Godavari 194844 84722686Guntur 112223 45924976

Srikakulam 32422 8939500Adilabad 52462 14947800

Total   21,04,201 98,65,33,001

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