Coming Soon: Biometric Authentication For UPI Payments, PIN to Become Optional

The National Payments Corporation of India (NPCI) is set to introduce biometric authentication for Unified Payments Interface (UPI) transactions, potentially making the traditional 4-6 digit PIN optional, according to industry sources. This update aims to enhance the security and convenience of digital payments, which currently account for over 80% of India’s digital transactions.

The proposed system will allow users to authenticate UPI transactions using biometric identifiers such as fingerprints, facial recognition, or iris scans, replacing the need to enter a PIN. NPCI is reportedly collaborating with startups to integrate this technology, leveraging advancements in biometric systems already tested in micro-ATM services in rural areas. Users will need to link their Aadhaar number to their bank accounts, as Aadhaar’s database contains biometric data for real-time verification.

This development is expected to benefit millions, particularly senior citizens and those in rural and semi-urban areas who struggle with remembering PINs or navigating digital interfaces. In a typical transaction, users will scan a QR code and verify their identity through a fingerprint or facial scan using their smartphone’s sensors, streamlining the process.

The move comes in response to growing concerns over PIN theft and financial fraud. Biometric authentication, being unique to each individual, is considered harder to replicate, potentially reducing fraud risks. To address privacy concerns, NPCI plans to implement robust encryption protocols to secure biometric data, ensuring it is not stored in raw format and is accessible only through authorized channels.

The initiative aligns with India’s position as a global leader in instant payments, with UPI processing 19.47 billion transactions worth ₹25.08 trillion in July 2025. NPCI has not announced an official launch date, but sources suggest the feature could be rolled out in the coming months, pending infrastructural upgrades and regulatory approvals.

Additionally, NPCI has introduced new UPI rules effective August 1, 2025, limiting account balance checks to 50 times daily and bank account checks to 25 times per app to ease system strain.