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In a major upgrade to India’s digital payments system, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have introduced biometric authentication for UPI apps starting October 8. Apps like PhonePe, Paytm, and Google Pay will now allow users to authorise payments using facial recognition or fingerprint scansoffering an alternative to the traditional 4-digit PIN.

What’s Changing?

Until now, users had to enter a UPI PIN to complete transactions. With the new guidelines:

• Biometric verification (face or fingerprint) can be used instead of a PIN.
• Users can change their UPI PIN through Aadhaar-based facial authentication instead of receiving an OTP.
• Each transaction will still be verified by banks using robust cryptographic checks to ensure safety.

This marks the first time biometric security — already widely used for Aadhaar and smartphone unlocks — is integrated directly into India’s fast-growing UPI ecosystem.

Faster, Safer, More Convenient

The move promises significant benefits for users and banks alike:

• Faster transactions: Payments can be authorised instantly without typing a PIN.
• Enhanced security: Biometric verification reduces risks from PIN theft, phishing, and OTP fraud.
• Simplified PIN management: Resetting or changing UPI PINs becomes easier without relying on OTPs.

Because the system is Aadhaar-linked, it leverages existing biometric data to verify users quickly and securely.

A Step Towards the Future of Payments

The introduction of biometric authentication signals a new chapter in India’s fintech journey. With UPI now handling billions of transactions every month, enhancing security and user experience is crucial. The rollout — expected to be showcased at the Global Fintech Festival in Mumbai — underscores India’s ambition to stay at the forefront of global digital payments innovation.

Soon, a simple look or touch could be all it takes to complete a UPI transaction.