- You can now use your phone's fingerprint or face unlock to approve UPI payments instead of a PIN.
- Setting or resetting your UPI PIN is now possible using Aadhaar-based face authentication.
- A new service allows you to withdraw cash at Micro ATMs simply by scanning a QR code with your UPI app.
- These initiatives are aimed at making UPI faster, more secure, and easier for new users to adopt.
- The new features will help expand financial inclusion by improving access to both digital payments and cash.
Source: NPCI
In a major push to make digital payments simpler and more accessible, the Secretary, Department of Financial Services, Ministry of Finance, Shri M. Nagaraju, IAS, announced three new digital features to make UPI payments more convenient, secure, and inclusive at the Global Fintech Fest 2025. The new initiatives—UPI with On-Device Biometric Authentication, Aadhaar-based Face Authentication for UPI PINs, and UPI-based cash withdrawals at Micro ATMs—are designed to enhance security and user convenience across the country.
These launches aim to remove common barriers in digital payments, making the experience faster for existing users and easier for new ones to join the digital ecosystem.
Say Goodbye to the PIN: Use Your Fingerprint or Face to Pay
In a significant upgrade to the payment process, users will now be able to approve UPI transactions using their smartphone’s built-in security features.
- What it is: This feature allows customers to use their fingerprint or face unlock instead of manually entering a UPI PIN for authentication.
- Faster and More Secure: It speeds up the payment process and enhances security, as each transaction is still independently verified by the bank using strong cryptographic checks.
- User in Control: This is an opt-in feature, meaning customers can choose whether they want to use their biometrics or stick with the PIN, giving them full control over their preferred authentication method.
Set Your UPI PIN with Face Authentication
Setting or resetting a UPI PIN has now become much simpler, especially for those new to the digital payment world.
- What it is: Users can now use Aadhaar-based facial verification to set or reset their UPI PIN, eliminating the need for debit card details or Aadhaar OTPs.
- Boosting Inclusion: This is a game-changer for first-time users, senior citizens, and individuals who may not have a debit card, making it much easier for them to get started with UPI.
- How it works: The feature uses UIDAI’s FaceRD App for Aadhaar-based facial verification to securely verify the user’s identity, making the process both convenient and secure. This may later be extended for authenticating transactions as well.
Withdraw Cash with UPI at Your Local Kirana Store
Access to cash, particularly in underserved areas, is set to improve with the introduction of UPI-based withdrawals at Micro ATMs.
- Expanding Financial Inclusion: By leveraging the widespread UPI network, this initiative aims to make cash withdrawal services more accessible for everyone, especially in areas with limited access to traditional ATMs.
- What it is: Customers can now withdraw cash at UPI Cash Points (Business Correspondent touchpoints) by simply scanning a QR code on the Micro ATM and authorizing the transaction from their UPI app.
- A Convenient Alternative: This new method supplements existing options like Aadhaar-enabled (AePS) and card-based withdrawals, offering more choice and convenience.
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