Benefit / Subsidy Transfer Solution

Benefit / Subsidy Transfer (APBS) Solution, 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.

Challenge

Benefit payments are made in non-standard methods that vary at state level, district level, and often block level, with high co-ordination costs. Government wants to ensure that the intended beneficiary is indeed the actual recipient, Visibility and auditability in this process.
  • Use of fake identities to draw subsidies
  • Lack of strong process to verify receipt by genuine beneficiary
  • Lack of Portability of Identity & Quality of Service
  • Availability of Infrastructure to facilitate direct transfer of Subsidy

Solution

  • Full compliance with Annexure VII, VIII, IX, X, XI, XII & XIII of APBS Specifications
  • Ensures scalability to process credit transaction files of any number of beneficiaries
  • Fraud check & reporting of AML violations
  • Solution based on advance technology and telecommunication infrastructure
  • Host to Host Solution with automated decryption and encryption of data files

Benefit / Subsidy Transfer (APB) 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 lead to electronification of a large number of retail payment transactions which were predominantly either in cash or cheque.

Benefits

  • Increased low cost fund flow for banks
  • Removes fakes/ duplicates from the beneficiaries list leading to savings
  • Bank account changes do not affect the transfer systems for various schemes
  • Resident-centric view of payments under various schemes
  • APBS Solution can be used for generic credit disbursement, i.e. Payroll
  • Digital audit trail of entire benefit transfer lifecycle
  • Location & scheme wise Daily reporting available to all stakeholders

Features

  • Supports multiple credit transaction file formats
  • SFTP based secure communication with NPCI
  • SMS confirmation to beneficiaries
  • Host to Host Solution with automated decryption and encryption of data files

Agency Compliance

National Payments Corporation of India (NPCI)
http://www.npci.org.in/

Benefit / Subsidy Transfer (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 lead to electronification of a large number of retail payment transactions which were predominantly either in cash or cheque.

1) What is Aadhaar number?
It is a 12 digit unique identification number that stores demographic and biometric information of the resident with photograph issued by Unique Identification Authority of India (UIDAI) on behalf of Government of India. Aadhaar serves as a proof of identity and address, anywhere in India.

2) What are the features of an Aadhaar number?
Aadhaar number is a 12 digit unique identification number which never starts with “0” and “1”. The last digit of the Aadhaar number is a check sum digit.

3) Who is eligible for Aadhaar number?
Any individual, irrespective of the age and gender, who is a resident of India and satisfies the verification process laid down by the UIDAI can enroll for Aadhaar number.

4) Is it enough to get the Aadhaar number for getting the Government benefits and subsidies?
No. Once a customer receives his/her Aadhaar number, he/she needs to submit an application along with a copy of the Aadhaar Card to the bank branch where he/she is maintaining an account. The bank branch seeds the Aadhaar number in the customer account details maintained in the Core Banking System of the bank, thus making the account as Aadhaar Enabled Bank Account (AEBA).

Host to Host Connectivity

  • Seamless file transfer, End-to-End Automation
  • Auto signing and Un-signing
  • Automatically uploads signed files to the NPCI host server
  • Supports a comprehensive logging and reporting system for accountability and audit trail
  • Performs digital signatures using RSA-2048 and SHA-2 algorithms