Centre rolls out on-device authentication for UPI transactions

Mumbai (The Uttam Hindu) - The Central Government on Tuesday introduced features like UPI with on-device biometric authentication, Aadhaar-based face authentication in UPI and cash withdrawal through micro-ATMs using UPI at UPI Cash Points. Shri M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, announced the launch of three new digital features at the Global Fintech Festival (GFF) 2025 today.

Launched by DFS Secretary M. Nagaraju, On-Device Authentication for UPI enables customers to authenticate UPI payments directly through their smartphone's built-in security options, such as fingerprint or face unlock, as an alternative to manually entering the UPI PIN. This feature will be available to customers who choose to opt in, giving them control over their preferred authentication method. It aims to make payments faster and more secure by reducing the need to repeatedly enter PINs. Each transaction is independently verified by the issuing bank using strong cryptographic checks, ensuring the highest level of security while keeping the experience simple and seamless.

Aadhaar-based face authentication in UPI provides users with a new and secure way to set or reset their UPI PIN directly within UPI apps. Until now, creating a UPI PIN required entering debit card details or going through Aadhaar OTP verification. With Aadhaar-based face authentication for UPI PINs, onboarding has become faster, simpler, and more inclusive. This solution leverages UIDAI's 'FaceRD App' for Aadhaar-based face verification, eliminating the need to manage multiple OTPs or card details and increasing both convenience and security.

Later, it will also be implemented for transactions requiring additional authentication. The DFS Secretary also introduced UPI as a new medium for cash withdrawals through micro ATMs at UPI Cash Points. Speaking to the media on the sidelines of the 6th Global Fintech Fest (GFF) 2025, M. Nagaraju said that UPI drives 50 percent of digital payments globally. Despite the growth of UPI, bringing the entire community living in tribal and rural areas into the formal financial system remains a major challenge for the government. Nagaraju said, "In many places, we are also facing the challenge of internet access. Therefore, offline transactions, rural transactions, are a challenge."

Regarding the imposition of fees on Unified Payments Interface (UPI) transactions, Nagaraju reiterated the government's position that there are no plans to impose fees. Emphasizing the importance of GST reform, he said that some public sector insurance companies are planning to expand their business, while others are reducing commissions. Therefore, each company will design its own business plan based on its capabilities. He said, "One thing is certain: all insurance companies, whether public sector or private, have reduced insurance costs through GST because GST has become zero."