RBI Issues New Guidelines to Curb AePS Fraud, Effective 2026
| Category | Details |
|---|---|
| Event | RBI issues new guidelines for Aadhaar Enabled Payment System (AePS) to curb fraud. |
| Effective Date | 1 January 2026 (must be implemented within three months). |
| Key Objective | Strengthen security, prevent identity theft, transaction fraud, and improve operator accountability. |
| Major Changes | - Stricter KYC (full KYC at onboarding, re-verification after 6 months of inactivity).<br>- One operator-one bank rule (operators can work with only one acquiring bank). |
| Monitoring Requirements | - Continuous transaction monitoring by banks.<br>- Risk-based transaction limits.<br>- Location verification to detect mismatches.<br>- Real-time fraud detection for suspicious activity. |
| Regulatory Framework | Guidelines issued under Payment and Settlement Systems Act, 2007, enforced by NPCI and acquiring banks. |
| Background | AePS enables basic banking services via Aadhaar authentication, primarily in rural/semi-urban areas, but faces rising fraud due to weak KYC and multi-bank operator setups. |