India Launches On-Device Biometric Authentication for UPI: Revolutionizing Digital Payments with Aadhaar Integration

Mumbai:

The government unveiled several innovative UPI features on Tuesday, including on-device biometric authentication as an alternative to PIN-based verification, Aadhaar-based face authentication for UPI PIN management, and a new cash withdrawal option through micro-ATMs at UPI cash points.

Mr. M. Nagaraju, IAS, Secretary of the Department of Financial Services, Ministry of Finance, officially launched these three digital initiatives at the Global Fintech Festival (GFF) 2025.

The first offering introduces on-device biometric authentication for UPI, allowing users to authorize payments using their smartphone's built-in security features like fingerprint or face recognition instead of manually entering PINs.

This opt-in feature aims to streamline the payment process while maintaining security. Each transaction undergoes verification by the issuing bank through robust cryptographic checks, ensuring safety without compromising user experience.

The second initiative, Aadhaar-based face authentication in UPI, provides users with a new method to set or reset their UPI PIN directly within applications. Previously, creating a UPI PIN required debit card details or Aadhaar OTP verification.

This enhancement simplifies the onboarding process, particularly benefiting first-time users, senior citizens, and individuals without easy access to cards. The system utilizes UIDAI's 'FaceRD App' for Aadhaar-based facial verification, eliminating the need for multiple OTPs or card details. Future plans include extending this capability to transactions requiring additional authentication.

Secretary Nagaraju also introduced UPI as a new method for cash withdrawals through micro-ATMs at UPI cash points. This development represents a significant advancement in making cash withdrawal processes more inclusive by leveraging UPI's versatile digital payment ecosystem.

--IANS

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