New Delhi: The National Payments Corporation of India (NPCI) has introduced biometric authentication for Unified Payments Interface (UPI) transactions, allowing users to approve payments using fingerprints or facial recognition instead of the traditional UPI PIN. The feature was announced during the Global Fintech Fest 2025 in Mumbai by M. Nagaraju M, Secretary, Department of Financial Services.
The new system enables users to authenticate transactions directly through their devices, removing the need to enter PINs or rely on OTPs. NPCI said the biometric data will remain stored on the device, ensuring privacy and minimizing risks of data misuse. The move aims to enhance digital payment security and reduce fraud linked to stolen or compromised UPI PINs.
Under this rollout, customers will also be able to use biometrics to set or reset their UPI PINs and withdraw cash from ATMs through UPI. Banks will continue to verify transactions through cryptographic validation, maintaining an additional layer of security.
Industry observers see the initiative as aligned with the Reserve Bank of India’s ongoing push for safer digital authentication methods. The central bank has recently urged financial institutions to move beyond PIN-based verification and explore biometrics or behavioral pattern analysis to curb UPI-related scams.
The update is expected to simplify access for senior citizens and new users by removing the need for debit card or Aadhaar-based OTP verification during onboarding. With UPI accounting for over 85% of India’s digital transactions, nearly 20 billion each month, the adoption of biometric authentication marks a shift toward a more secure and inclusive payments ecosystem.
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