NPCI To Introduce Biometric Authentication For UPI To Combat Rising Fraud

(MENAFN- KNN India) New Delhi, Aug 8 (KNN) The National Payments Corporation of India (NPCI) is set to enhance the security of Unified Payments Interface (UPI) transactions by integrating biometric authentication, according to recent reports.

This move comes in response to growing concerns from the Reserve Bank of India (RBI) over the effectiveness of the current four-to-six digit PIN used for multifactor authentication (MFA).

Rumours suggest that NPCI plans to enable fingerprint biometrics for Android devices and face ID verification for iPhones, adding a crucial layer of security to UPI transactions.

Currently, UPI relies on device-based authentication via SMS during enrolment, with a PIN serving as secondary protection.

The RBI's latest report highlights UPI fraud losses totalling 14.57 billion rupees (USD 175 million) for the fiscal year ending March 2024.

With UPI accounting for 80 percent of India's online transactions, the central bank is pushing for stronger authentication methods to address the 95,000 fraud cases reported in 2022-23.

The RBI is set to publish a framework for alternative authentication methods, with a focus on biometrics. While NPCI has engaged with several startups for this initiative, the final partner is yet to be decided.

NPCI is expected to accelerate the implementation of biometric authentication in the coming months to mitigate rising fraud risks.

(KNN Bureau)

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