News | RBI Issues Stricter Guidelines for Aadhaar-Enabled Payment System to Tackle Rising Fraud

RBI Issues Stricter Guidelines for Aadhaar-Enabled Payment System to Tackle Rising Fraud

News

28 June 2025

1 min read

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The Reserve Bank of India (RBI) has announced new, stricter guidelines for the Aadhaar-Enabled Payment System (AePS), aimed at curbing the growing number of fraud cases linked to the platform. The regulations will take effect from January 1, 2026.

As per the updated framework, acquiring banks will be required to conduct full KYC (Know Your Customer) verification of Aadhaar Touchpoint Operators (ATOs) — the agents facilitating AePS transactions. The RBI has also mandated that KYC be renewed if an ATO remains inactive for three consecutive months.

In addition, banks must implement continuous transaction monitoring based on an operator’s risk profile. Each ATO will now be permitted to work with only one acquiring bank to improve accountability. The new rules also call for strict controls to ensure APIs and tech infrastructure are used solely for AePS-related services.

The move comes amid rising concerns over identity theft, unauthorized withdrawals, and frauds targeting users in rural areas where AePS is a key tool for accessing banking services.

These guidelines follow a draft proposal released by the RBI in July 2024 and are part of broader efforts to enhance safety and trust in India’s digital payment systems.

Reference: ETBFSI