• Source:JND
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UPI: The National Payment Corporation Of India (NPCI) is reportedly considering introducing biometric authentication for the Unified Payments Interface (UPI) and the body is in talks with several startups.

Moneycontrol reported citing sources familiar with the matter that the proposed system would allow UPI users to authenticate UPI transactions using fingerprints on Android devices and face ID on iPhones. This method is supposed to replace the current four or six-digit UPI PIN mechanism.

This development comes just a week after the Reserve Bank of India (RBI) proposed an alternative method for additional factor authentication (AFA) in digital transactions. The RBI suggested exploring options beyond PINs and passwords, which can include biometrics such as fingerprints.

According to the report, NPCI's discussions with the startup are focused on the financial and legal aspects of a potential partnership. Initially, both PIN and biometric authentication methods are likely to coexist, providing users with multiple options for verifying transactions.

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This move towards biometric authentication is in line with RBI's preference for more secure verification methods to combat financial fraud. NPCI aims to enhance the security and user experience for users using the built-in biometric capabilities of modern smartphones.

Currently, UPI uses a two-factor authentication system. The primary factor is device binding via SMS when the user enrolls for UPI on their mobile device. The secondary factor is the UPI PIN, which the user must enter to confirm the transaction.

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