What is APBS credit?

The full form of APBS credit is Aadhar Payment Bridge System. This is a program initiated by the Government of India. So, what is APBS credit in bank statement? I will share with you the definition below.

What is APBS credit transaction meaning?

• APBS and Direct Benefit Transfer are required for crediting DBT transactions for Government/ Government agency disbursements.

• This scheme helps to transfer the subsidies directly to the bank accounts. This in turn reduces the leakages and delays in the disbursement of all government transactions. 

• The main objective of this Direct Benefit Transfer program is to bring transparency and avoid pilferage from funds which is organised by the Central Government of India.

• To disburse subsidies using an Aadhar card.

• To make an electronic transfer of retail payments popular.

• To support different types of schemes such as NREGA, Social Security Pension, Handicapped Old Age Pension etc. of any Central or State Government bodies.

APBS helps customers use only one bank account for different schemes instead of many. APBS helps to reduce the cost by saving bank trips, it provides access to ATMs in villages and helps in the usage of the formal banking systems. The savings and borrowings are operated online and the AEPS structure provides access to bank accounts anywhere, any time.

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APBS full form is Aadhaar Payments Bridge System. As you can understand from the name itself, it is a payment system that was introduced by the NPCI or the National Payments Corporation of India. I will tell you what is the most unique feature of this payment system. It is making use of the Aadhaar number as the key to channel the Government benefits and subsidies of the beneficiaries in the AEBA or the Aadhaar Enabled Bank Accounts. 

In simple terms, if I tell you, APBS is a payment system that functions on the basis of our Aadhaar Number. It is used for the transfer of government benefits and subsidies transfer under the DBT or the Direct Benefit Transfer scheme of the government.

Features & Benefits of the APB System

Now that you know the APBS full form in banking, let me explain its features to you. 

• The complete process of electronic transfer is paperless. Since the process is used by the government, it is highly automated which reduces the chances of delay in the transfer.

• The subsidies are transferred directly to the account of the beneficiaries without the need for a third party or any other payment channel.

• If the beneficiaries ever change their bank account in future, they are not required to inform the government agencies regarding the same. If their new bank account is also linked with their Aadhaar number, they are good to go.

This is what APBS credit means.