UPI payments in India will now be enabled through a biometric system, eliminating the need for a PIN. This new method will ensure faster, easier, and more secure transactions using fingerprint or Face ID.
UPI Payment: The landscape of digital payments in India is set for another transformation. Until now, entering a PIN was mandatory for UPI (Unified Payments Interface) payments in the country, but this will soon be unnecessary. The National Payments Corporation of India (NPCI) is working on a new technology that will allow users to conduct UPI transactions using only their fingerprint or Face ID. This system will make digital transactions easier, faster, and more secure than before.
Biometric-Based Payments: What Will the New System Be Like?
The new system is based on biometric authentication. This means that users will no longer need to remember a 4 or 6-digit UPI PIN. Payment confirmation will be possible simply by using a fingerprint scan or Face ID. This feature will be particularly beneficial for those who are not technologically savvy, such as senior citizens or people living in rural areas.
What Has the UPI PIN System Entailed So Far?
Currently, making a payment via UPI requires selecting a bank account linked to a mobile number and then entering a security PIN. This PIN provides a b layer of security, but it can also slow down the process at times. Remembering this PIN can be a challenge for some users, which may reduce their confidence in digital payments.
What Are the Benefits of the New System?
- Faster Transactions: Payments will be confirmed instantly with Face ID or fingerprint.
- No PIN Hassle: Eliminates the problem of forgetting passwords or PINs.
- Increased Accessibility: Senior citizens and those unfamiliar with technology will be able to make digital payments easily.
- Enhanced Security: Biometric data is unique and difficult to replicate. This will reduce the possibility of fraud.
The Role of Devices and Networks
For biometric authentication, it is essential for the device to be updated. New versions of Android and iOS already have biometric features, but NPCI is working towards integrating these features with UPI apps like Google Pay, PhonePe, Paytm, and BHIM App.
New Rules and Limitations Will Also Be Implemented
To keep the UPI system secure and organized, NPCI is also introducing other changes:
- Auto-Debit Limitation: EMI and subscription payments will only be processed before 10 AM or after 9:30 PM.
- Inquiry Limit: A user will only be able to retrieve their bank account information 25 times a day.
- Pending Transaction Check: The status of pending transactions can be checked a maximum of 3 times a day, with an interval of 90 seconds each time.
Focus on Privacy and Data Security
Biometric data is sensitive information. The government and NPCI are assuring that all data will be stored in an encrypted form and that no third party will be allowed access. No biometric data will be used without the user's consent.
When Could This Facility Be Launched?
NPCI has currently started working on this system and it may be launched soon as a pilot project with a few selected banks and UPI apps. If it is successful, it will be implemented in a phased manner throughout the country.
