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TaxhintAdvisors

October 7, 2026 · Guides

AEPS and Digital Payments in Society and Loan Software

AEPS for societies is one of those features everybody has heard of and few offices can explain. Along with QR payments, a payment gateway and NACH or e-mandate collection, it decides how money reaches your society without a person carrying cash. This guide explains each in plain words, who does what, and what to ask before you rely on it.

In this guide

What the feature is

Taxhint’s credit and thrift society software lists AEPS, QR code payment through a payment gateway, NACH and e-mandate among its built-in facilities. The page names them without detailing each, so here is what they mean in general.

FacilityIn plain words
AEPSAadhaar Enabled Payment System. A person identifies with Aadhaar and fingerprint to do basic bank transactions at an agent point.
QR code paymentThe customer scans a code and pays from any UPI app. The payment is matched to a loan or deposit account.
Payment gatewayAn online page where a member pays by UPI, card or net banking.
NACH and e-mandateThe borrower authorises their bank once, and the EMI is debited on the due date.

What your society may actually offer through AEPS depends on the arrangement with the partner bank or provider and on the rules for your type of institution. Read how the AEPS facility works for societies and lenders and check the current rules with your CA or regulator. Software does not make a transaction lawful that your Act does not allow.

How to use it

  1. Manager: decide which products use which channel. For example, NACH for monthly EMI loans, QR for counter and agent collections.
  2. Clerk, at loan sanction: collect the bank details and set up the NACH or e-mandate. Note the status in the loan file.
  3. Clerk, before the due date: confirm the mandate is active. An inactive mandate is a missed EMI waiting to happen.
  4. Agent or counter: show the QR code at the time of collection. Wait for the payment confirmation before handing over a receipt. The same app flow is described in mobile apps for collection and customers.
  5. Accountant, daily: match the digital credits that came into the bank with the receipts posted in the software. Investigate every difference.
  6. Manager, weekly: look at which EMIs were debited and which bounced, and call the bounced ones.

How it helps the business

Cash is slow and risky. A daily collection agent carrying a day’s receipts is a theft and error risk. When members pay by QR, the money lands in the society’s bank account and the agent has less cash to count. When a borrower is on NACH, the EMI does not depend on a visit at all.

The numbers to watch:

  • Unmatched credits: bank entries with no receipt in the software. This should be nil at the end of each day.
  • Mandate bounces per cycle: how many NACH debits failed. Rising bounces point to wrong bank details or borrowers short of funds.
  • Cash versus digital split: track it each month. You will see which branches or agents are still cash-heavy.

Example: a society with 30 monthly-EMI borrowers on NACH knows on the due date, not a week later, which five did not pay. Collection staff start with those five. The wider integration picture is in built-in checks and integrations.

Common mistakes

  • Treating a QR credit as cash and posting it to the cash book. It belongs to the bank ledger.
  • Showing a personal QR code instead of the society’s own. Money then goes to a person, not the institution.
  • Entering the wrong account number in a mandate and finding out only when the first EMI bounces.
  • Ignoring bounced debits until month end.
  • Starting AEPS without confirming what your law and your partner allow.
  • Not telling members that a payment is final only after confirmation arrives.

What to check in a demo

  • Ask which transactions AEPS covers for your institution type, and who the settlement partner is.
  • Make a test QR payment. Does it post to the correct loan or deposit account on its own?
  • Ask to see a failed or pending payment. How does the software show it?
  • Register a test mandate. Can you see its status and the bounce reason later?
  • Look at the day-end report. Does it separate cash, QR, gateway and NACH receipts?
  • Ask about charges from the gateway or bank and who bears them. For software charges, ask us for a quote.

You can compare this checklist with the one in the buyer’s guide to loan and society management software.

Want to see this working on your own data? See the credit and thrift society software, ask for a live demo on +91 93117 95484, or write to mail@taxhint.in.

FAQs

What is AEPS in simple terms?

It is a way for a person to do basic bank transactions by giving an Aadhaar number and a fingerprint at an agent point. What a society can offer through it depends on its partner and on the rules for its type.

Is QR collection better than cash?

For most offices it is safer, because the money reaches the bank directly and leaves a record. You still need a daily match between bank credits and receipts.

What is the difference between NACH and e-mandate?

Both let a bank debit a borrower on the due date after the borrower has authorised it. An e-mandate is simply set up digitally rather than on paper.

Can software make AEPS legal for my society?

No. Software only records and processes what the law and your partner arrangement allow. Confirm with your CA or regulator before you start.

More in this software series