NPCI Rolls Out Fingerprint and Face Authentication for UPI Payments Starting October 8

Starting 8 October 2025, Indian users will be able to authenticate UPI transactions using fingerprint and facial recognition, signaling a major shift from the traditional numeric PIN-based system. This initiative by the National Payments Corporation of India (NPCI) aims to enhance security and convenience in digital payments across the country.

Biometric Authentication Powered by Aadhaar

According to sources cited by Reuters, the new authentication process will leverage biometric data linked to Aadhaar, India’s unique identification system. By integrating fingerprints and facial recognition into UPI transactions, users can now verify payments quickly without relying solely on PINs.

The NPCI plans to demonstrate this feature at the ongoing Global Fintech Festival in Mumbai, showcasing the future of secure and seamless digital payments in India.

RBI Framework Encourages Advanced Authentication

The move follows the Reserve Bank of India’s (RBI) new framework titled “Authentication Mechanisms for Digital Payment Transactions Directions, 2025.” The framework encourages banks, fintechs, and payment providers to adopt modern and secure authentication methods beyond the conventional SMS-based OTPs.

According to RBI, the goal is to “encourage introduction of new factors of authentication by leveraging technological advancements,” while still allowing OTPs as an additional factor of authentication (AFA).

Alternative Methods for Digital Payment Verification

Under the new directions, financial institutions can implement alternative authentication methods, either in place of or alongside OTPs. These may include:

• Device-based verification

• Biometric authentication (fingerprints, facial recognition)

• Hardware tokens

• Passphrases or one-time credentials

The framework provides flexibility for banks and fintechs to enhance security while improving user convenience.

Current Reliance on OTPs

Currently, SMS OTPs are the most widely used second layer of authentication for digital payments in India. Although the RBI has not mandated OTPs, they remain the industry standard for additional security.

The new framework, however, encourages a shift towards transaction-specific factors to prevent reuse or compromise, aiming to improve the overall security ecosystem of digital payments.

Transaction-Specific Authentication Factors

The RBI framework specifies that at least one authentication factor for every digital transaction must be unique to that transaction. This ensures protection against unauthorized access and fraud.

Authentication factors may fall into three categories:

1. Something the user knows: Passwords, PINs

2. Something the user has: Hardware tokens, device credentials

3. Something the user is: Biometric identifiers like fingerprints or facial recognition

By combining these factors, digital payments can achieve multi-layered security while reducing reliance on OTPs.

Scope of the New Framework

The RBI’s new rules apply to all domestic digital payment transactions, including:

• Bank transfers

• Card payments

• UPI transactions

• Payments processed by fintech firms and other payment system participants

This ensures a uniform approach to digital payment security, strengthening trust among consumers and merchants alike.

Benefits of Biometric UPI Authentication

The introduction of fingerprint and facial recognition for UPI transactions is expected to bring multiple advantages:

• Faster payment verification without typing PINs or waiting for OTPs

• Enhanced security against fraud and unauthorized access

• User-friendly experience, especially for older or tech-averse individuals

• Alignment with global trends in biometric payment authentication

The NPCI’s move is a significant step toward creating a secure, cashless economy in India.

Conclusion

With biometric authentication for UPI transactions launching on October 8, India is entering a new era of secure, convenient, and technologically advanced digital payments. Leveraging Aadhaar-based fingerprints and facial recognition, the initiative aligns with the RBI’s framework and modernizes the country’s payment ecosystem, reducing dependence on traditional PINs and OTPs.