Last Updated: July 2026
Have you ever withdrawn ₹1,000 through AEPS using your Aadhaar fingerprint, but later received a bank SMS showing that ₹1,017, ₹1,020, or even ₹1,023.60 was debited from your account?
If yes, you're not alone. Every day, thousands of customers across India face the same confusion and immediately think:
"Did the CSC or CSP operator deduct my money?"
In reality, the answer is not always.
In many situations, the additional deduction is made by your own bank according to its official Schedule of Charges, not by the CSC operator.
In this complete guide, you'll learn how AEPS charges work, when banks can deduct service charges, whether Balance Enquiry can also be chargeable, and how you can avoid unnecessary deductions.
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| Why Does AEPS Deduct Extra Money AEPS Charges Explained (2026 Guide) |
📑 Table of Contents
- What is AEPS?
- How AEPS Works
- Why Does the Bank Deduct Extra Money?
- Does NPCI Decide AEPS Charges?
- ON-US vs OFF-US Transactions
- Why Every Bank Has Different Charges
- Official References
What is AEPS?
AEPS (Aadhaar Enabled Payment System) is a banking payment system developed and operated by the National Payments Corporation of India (NPCI).
It allows customers to access banking services using:
- Aadhaar Number
- Bank Name
- Fingerprint Authentication
Unlike ATM withdrawals, AEPS does not require:
- Debit Card
- ATM PIN
- Internet Banking
- Mobile Banking
This system is especially useful for people living in villages and rural areas where bank branches or ATMs may not be easily accessible.
Services Available Through AEPS
- Cash Withdrawal
- Cash Deposit (Supported Banks)
- Balance Enquiry
- Mini Statement
- Aadhaar to Aadhaar Fund Transfer (Where Available)
How Does AEPS Work?
The transaction process is simple and secure.
- Visit an authorised CSC, CSP or Banking Correspondent.
- Provide your Aadhaar Number.
- Select your Bank Name.
- Choose the required banking service.
- Authenticate using your fingerprint.
- The request is securely routed through NPCI.
- Your bank verifies the Aadhaar linkage and fingerprint.
- If authentication is successful, the transaction is completed.
Since biometric authentication is used, no ATM card or PIN is required.
Why Does the Bank Deduct Extra Money?
This is the most common question asked by AEPS users.
Suppose you withdraw ₹1,000.
Later you receive an SMS stating:
Debit Amount: ₹1,023.60
Many people immediately believe that the CSC operator has deducted ₹23.60.
However, this is not necessarily true.
Many banks deduct AEPS-related service charges according to their own official charging policy.
Therefore, the amount shown in the SMS may include:
- AEPS Service Charge
- Applicable GST
- Other banking service charges (if applicable)
The deduction depends entirely on your bank's official Schedule of Charges.
Does NPCI Decide AEPS Charges?
One of the biggest myths on social media is that NPCI gives every customer three or five free AEPS transactions every month.
This is not a universal rule.
NPCI operates the AEPS payment infrastructure, but banks decide their own customer charging policies.
Every bank publishes its own Schedule of Charges.
That means:
- State Bank of India may follow one charging policy.
- Bank of Baroda may have a different policy.
- HDFC Bank may have different limits.
- ICICI Bank may apply different service charges.
- India Post Payments Bank has its own published charging structure.
Therefore, customers should always verify the latest charging policy directly from their bank instead of relying on social media posts.
What is ON-US and OFF-US Transaction?
Understanding ON-US and OFF-US transactions is very important.
ON-US Transaction
If your bank account and the AEPS service provider belong to the same banking network, the transaction is generally considered an ON-US transaction.
Example:
- SBI Account
- SBI Customer Service Point
This is generally treated as an ON-US transaction.
OFF-US Transaction
If your account belongs to one bank but the AEPS transaction is performed through another bank's network or banking correspondent, it is generally considered an OFF-US transaction.
Example:
- SBI Account
- Bank of Baroda CSP
This is generally treated as an OFF-US transaction.
OFF-US does NOT automatically mean that charges will be deducted.
Whether any charge applies depends on your issuer bank's official policy.
Why Every Bank Has Different AEPS Charges?
Every bank has the authority to define its own customer charging policy.
Each bank may independently decide:
- Number of free AEPS transactions
- Cash withdrawal charges
- Balance enquiry charges
- Mini statement charges
- Monthly free limits
- Applicable GST
That is why two customers withdrawing the same amount through AEPS may experience different deductions.
Official References
- National Payments Corporation of India (NPCI)
- NPCI AEPS Product Overview
- Reserve Bank of India (RBI)
In the next section, we'll explain:
- Does the CSC Operator Deduct Your Money?
- Balance Enquiry Charges
- Mini Statement Charges
- IPPB Official Example
- Real-Life AEPS Charge Examples
- How Different Banks Apply AEPS Charges
Does the CSC or CSP Operator Deduct Your Money?
This is one of the biggest misconceptions among AEPS users. Whenever customers notice an additional debit amount in their bank account after an AEPS transaction, many immediately assume that the CSC or CSP operator has deducted their money. However, in many cases, this assumption is incorrect.
The CSC operator does not have the authority to directly deduct these bank-imposed service charges from your savings account through the AEPS system. The transaction is processed securely through NPCI, while the issuing bank decides whether any customer charge should apply.
Understand with a Simple Example
| Transaction Details | Amount |
|---|---|
| Cash Withdrawn through AEPS | ₹1,000 |
| Cash Received from CSC | ₹1,000 |
| Later SMS from Bank | Debit ₹1,023.60 |
Many people believe that the CSC operator kept ₹23.60. In reality, the bank may have debited an AEPS service charge along with applicable GST according to its Schedule of Charges. Therefore, always verify the transaction narration in your bank statement before reaching any conclusion.
Bank Charge vs CSC Service Fee
It is also important to understand the difference between a Bank Charge and a CSC Service Fee. These are not the same thing.
| Bank AEPS Charge | CSC / CSP Service Fee |
|---|---|
| Deducted automatically from your bank account. | Collected directly by the service provider, if applicable. |
| Based on your bank's official Schedule of Charges. | Not part of your bank statement unless separately charged. |
| Appears in Passbook or Account Statement. | Should be informed to the customer before collecting. |
| Controlled by the issuing bank. | Depends on the service centre's own service policy. |
If any CSC or CSP operator charges an additional service fee, they should clearly inform customers before processing the transaction. Always ask for a receipt whenever applicable.
Can Balance Enquiry Also Be Chargeable?
Yes. Many customers believe that only cash withdrawal attracts charges. However, depending on your bank's official policy, even Balance Enquiry may become chargeable after a specified free limit.
Some banks provide unlimited free balance enquiries, while others may include them within a monthly free transaction limit. After the free limit is exhausted, the bank may deduct a small service charge.
Balance Enquiry Policy May Differ from Bank to Bank
- Some banks offer unlimited free Balance Enquiry.
- Some banks provide only a limited number of free enquiries every month.
- Some banks charge only for OFF-US Balance Enquiry.
- Some banks never charge for this service.
Instead of checking your account balance frequently through AEPS, use your bank's Mobile Banking App, Internet Banking, UPI App, Missed Call Banking, or SMS Banking service whenever available. This may help you avoid unnecessary service charges.
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| Why Does AEPS Deduct Extra Money AEPS Charges Explained (2026 Guide) |
Can Mini Statement Also Be Chargeable?
Yes. Mini Statement transactions may also be chargeable depending on the bank's charging policy. Several banks provide this service free of cost, while others may apply charges after the monthly free limit.
| AEPS Service | Possible Charging Policy |
|---|---|
| Cash Withdrawal | May be Free or Chargeable depending on the bank. |
| Balance Enquiry | May be Free or Chargeable after free limit. |
| Mini Statement | Depends on the bank's Schedule of Charges. |
| Cash Deposit | Depends on the issuing bank. |
This is why two customers using the same CSC centre may experience completely different charges, because their bank accounts belong to different banks with different pricing policies.
Common Myths vs Reality
| Myth | Reality |
|---|---|
| NPCI gives everyone 3 free AEPS transactions. | No universal rule exists for all banks. |
| Every OFF-US transaction is chargeable. | Charges depend on your issuer bank's policy. |
| CSC operator always deducts extra money. | Many deductions are actually made by the bank itself. |
| Balance Enquiry is always free. | Not true. Some banks may charge after the free limit. |
| All banks follow the same AEPS charging policy. | Every bank publishes its own Schedule of Charges. |
Key Takeaway
Before blaming the CSC or CSP operator, always verify your bank statement and check your bank's official Schedule of Charges. Many additional AEPS deductions are applied automatically by the issuing bank according to its own policy. Understanding this difference can help avoid confusion and unnecessary disputes.
Official Example: India Post Payments Bank (IPPB)
To understand how AEPS charges work in real life, let's look at an official example from India Post Payments Bank (IPPB). IPPB publishes its Schedule of Charges on its official website, where various banking service charges are clearly mentioned.
The published document explains that some AEPS-related services may become chargeable after the free transaction limit, depending on the applicable policy. This clearly shows that AEPS charges are determined by the issuing bank's official pricing policy and are not identical across all banks.
Banks may revise their Schedule of Charges from time to time. Therefore, always verify the latest version from your bank's official website before assuming that any service is free or chargeable.
Why Different Banks Have Different AEPS Charges?
One of the biggest misunderstandings among customers is that every bank follows the same AEPS charging policy. However, this is not true.
Each bank independently decides its own customer service charges. Therefore, the number of free transactions, withdrawal charges, balance enquiry policy, and mini statement charges may differ significantly from one bank to another.
| Bank Policy | May Vary |
|---|---|
| Cash Withdrawal Charges | Yes |
| Balance Enquiry Charges | Yes |
| Mini Statement Charges | Yes |
| Monthly Free Transactions | Yes |
| GST Applicability | As per applicable rules |
This is why two customers standing at the same CSC centre can experience completely different charges simply because they have accounts in different banks.
How to Avoid Unnecessary AEPS Charges?
Although banks decide their own charging policies, customers can still reduce unnecessary deductions by following a few simple practices.
1. Avoid Multiple Small Withdrawals
Instead of withdrawing ₹500 four different times, consider withdrawing the required amount in a single transaction whenever possible. This may reduce the total number of chargeable transactions.
2. Avoid Frequent Balance Enquiries Through AEPS
Use Mobile Banking, Internet Banking, UPI Apps, SMS Banking or Missed Call Banking to check your account balance instead of repeatedly using AEPS.
3. Keep SMS Alerts Enabled
SMS alerts help you immediately identify whether a deduction is related to a withdrawal, service charge or any other banking transaction.
4. Read Your Bank's Schedule of Charges
Most customers never read this document, but it clearly explains:
- Which services are free
- Which services are chargeable
- Applicable transaction limits
- GST applicability
- Conditions for charging
What Should You Do If You Think the Charge Is Incorrect?
If you believe your bank has deducted an incorrect AEPS charge, follow these steps.
- Check your bank statement or passbook carefully.
- Read the narration of the debit entry.
- Compare it with your bank's Schedule of Charges.
- Contact Customer Care for clarification.
- Visit your home branch if necessary.
- Submit a written complaint if the deduction appears inconsistent with the published policy.
Never assume that the CSC operator is responsible for every deduction. Always verify the transaction details first because many deductions are automatically processed by the issuing bank.
Official References
- NPCI - Aadhaar Enabled Payment System (AEPS)
- National Payments Corporation of India (NPCI)
- India Post Payments Bank (IPPB)
- Reserve Bank of India (RBI)
Quick Summary
- AEPS is operated by NPCI.
- Banks decide their own customer charging policies.
- Charges are not identical across all banks.
- Balance Enquiry and Mini Statement may also be chargeable in some banks.
- Always verify your bank's Schedule of Charges before assuming any deduction is incorrect.
- Do not immediately blame the CSC operator without checking your bank statement.
AI Overview Summary
Quick Answer:
AEPS (Aadhaar Enabled Payment System) itself does not automatically deduct extra money from every customer. If you notice that the amount debited from your bank account is higher than the cash you received, the additional deduction may be a service charge applied by your bank according to its official Schedule of Charges. These charges vary from bank to bank and may apply to services such as Cash Withdrawal, Balance Enquiry or Mini Statement after certain conditions or free limits. Customers should always verify their bank's official charging policy before assuming that the CSC or CSP operator deducted the money.
Featured Snippet Answers
Why does AEPS deduct extra money?
The extra amount is usually deducted by the customer's bank as an AEPS service charge, transaction charge or applicable GST according to its official Schedule of Charges. It is not automatically deducted by every CSC operator.
Does the CSC operator deduct AEPS charges?
Generally, no. Bank-imposed AEPS charges are deducted by the issuing bank. If a CSC operator collects any separate service fee, it should be disclosed to the customer before the transaction.
Can Balance Enquiry through AEPS be chargeable?
Yes. Some banks may charge for Balance Enquiry after the free transaction limit, while others provide the service free of cost.
Who decides AEPS charges?
NPCI provides the AEPS infrastructure, but customer-facing charges are generally determined by the individual bank according to its published policy.
Frequently Asked Questions (FAQs)
1. What is AEPS?
AEPS stands for Aadhaar Enabled Payment System. It allows customers to access banking services using Aadhaar authentication and biometric verification.
2. Is AEPS safe?
Yes. AEPS transactions are processed through NPCI using biometric authentication, making them a secure banking channel when used through authorised service providers.
3. Can I withdraw cash without an ATM card using AEPS?
Yes. You only need your Aadhaar number (linked to your bank account) and biometric authentication at an authorised AEPS outlet.
4. Why did my bank deduct more money than I withdrew?
The additional amount may represent an AEPS service charge, transaction fee or GST applied according to your bank's charging policy.
5. Does every bank charge for AEPS?
No. Charging policies vary between banks. Some services may be free in one bank but chargeable in another.
6. Does NPCI deduct AEPS service charges?
NPCI operates the payment infrastructure. Customer service charges are generally decided by the issuing bank.
7. Can Mini Statement also be chargeable?
Yes. Depending on the bank's policy, Mini Statement services may become chargeable after the free limit.
8. Can Balance Enquiry become chargeable?
Yes. Some banks include Balance Enquiry within monthly free transactions, while others may charge after the limit is exhausted.
9. How can I avoid unnecessary AEPS charges?
- Avoid frequent small withdrawals.
- Use Mobile Banking or UPI apps for balance checks.
- Enable SMS alerts.
- Read your bank's Schedule of Charges.
10. What should I do if I believe the bank deducted the wrong amount?
Check your bank statement, compare it with the official Schedule of Charges, contact customer care and submit a written complaint if required.
Key Takeaways
- AEPS is operated through NPCI.
- Different banks have different charging policies.
- Not every AEPS transaction attracts charges.
- Balance Enquiry and Mini Statement may also be chargeable in some banks.
- Always verify the bank's official Schedule of Charges.
- Do not immediately assume that the CSC operator deducted the money.
- Keep SMS alerts enabled to monitor every debit.
- Use digital banking channels whenever possible to reduce unnecessary transactions.
Bank policies are revised periodically. The information provided in this guide is intended for educational purposes. Always confirm the latest AEPS charges directly from your bank's official website or customer care before making financial decisions.
More Frequently Asked Questions (FAQs)
11. Can I use AEPS if my Aadhaar is not linked to my bank account?
No. Your Aadhaar number must be linked with your bank account for AEPS transactions to work successfully.
12. Is biometric authentication mandatory for AEPS?
Yes. AEPS transactions are authenticated using your fingerprint or other supported biometric authentication methods.
13. Can AEPS be used at every CSC or CSP?
Only authorised Banking Correspondents (BCs), CSCs, CSPs or Micro ATM operators providing AEPS services can process these transactions.
14. Why do two customers receive different AEPS charges?
Because each bank has its own Schedule of Charges. The applicable fees depend on your account-holding bank's policy.
15. Where can I check my bank's AEPS charges?
Visit your bank's official website, read the latest Schedule of Charges or contact customer care for the most recent information.
Conclusion
AEPS has made banking services easily accessible, especially in rural and semi-urban areas. With just your Aadhaar number and biometric authentication, you can withdraw cash, check your account balance and access other essential banking services without visiting a bank branch or ATM.
However, many customers become confused when they notice that the amount debited from their account is higher than the cash they received. In many cases, this additional deduction is not caused by the CSC or CSP operator but may be a bank-imposed service charge applied according to the bank's official Schedule of Charges.
The most important lesson is simple: Always verify your bank statement, read your bank's official Schedule of Charges, and avoid relying solely on social media rumours.
If you believe that a charge has been applied incorrectly, contact your bank immediately and request clarification.
Final Takeaway
- AEPS is operated by NPCI.
- Customer charges are determined by the respective bank.
- Different banks follow different charging policies.
- Balance Enquiry and Mini Statement may also be chargeable depending on the bank.
- Always verify the latest official Schedule of Charges.
- Keep SMS alerts enabled to monitor every transaction.
Official Sources
- NPCI – Aadhaar Enabled Payment System
- National Payments Corporation of India (NPCI)
- Reserve Bank of India (RBI)
- India Post Payments Bank (IPPB)
Disclaimer
This article is published for educational and informational purposes only. AEPS policies, service availability and bank charges may change over time. Readers should always verify the latest information directly from the official website or customer support of their respective bank before making any financial decision.
About the Author
Parthasarathi Panda
Parthasarathi Panda is the founder of PSP Studio Odia, where he creates educational content related to digital services, banking, government schemes, technology and consumer awareness. His goal is to simplify complex topics using authentic information from official government and banking sources.
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