In a landmark move to enhance the safety and convenience of digital payments, the National Payments Corporation of India (NPCI) has launched biometric authentication for UPI transactions. The feature will allow users to approve payments using fingerprints or facial recognition instead of the traditional UPI PIN.
The announcement was made at the Global Fintech Fest 2025 in Mumbai by M. Nagaraju M, Secretary, Department of Financial Services, Ministry of Finance, marking a new era in India’s digital payments ecosystem.
Seamless and User-Friendly Payments
The on-device biometric authentication will serve as a secure alternative to PIN-based verification. It can also be used for:
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Setting or resetting UPI PINs
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Authorising cash withdrawals at ATMs using UPI
NPCI clarified that the feature is opt-in, ensuring users retain full control over their preferred authentication method.
Simplifying Onboarding for New Users
The rollout is expected to benefit senior citizens and first-time UPI users, who often face challenges with PIN setup. Previously, creating a UPI PIN required debit card details or Aadhaar OTP verification. With Aadhaar-based facial authentication, the process is faster, more inclusive, and easier to adopt.
Stronger Protection Against Fraud
The Reserve Bank of India (RBI) has been advocating for alternative second-factor authentication methods due to rising concerns over PIN-related frauds.
By combining device binding and biometric verification, NPCI ensures that each UPI transaction undergoes robust cryptographic checks, significantly reducing fraud risks while providing a safer and smarter way to pay.
