Users will now also have the option to authenticate transactions with fingerprints or facial recognition on their devices, eliminating the need to manually enter the personal identification number (PIN), announced financial services secretary M. Nagaraju at the Global Fintech Fest 2025 on Tuesday. Initially, such transactions will be capped at ₹5,000, and the limit will be reviewed later.
Separately, Aadhaar-based facial authentication will offer users a new and secure way to set or reset their PIN within UPI apps. Until now, creating a UPI PIN required entering debit card details or going through Aadhaar one-time password (OTP) verification.
The additional authentication options aim to make payments faster and more secure by reducing the need for repeated PIN entries. Each such transaction will be independently verified by the issuing bank using robust cryptographic checks.
UPI applications and banks providing payment services shall ensure that fresh consent is obtained “after each device binding operation before allowing further transactions”, the NPCI said, referring to the requirement of fresh approval to enable biometric authentication every time a device is changed.
Issuer banks will need to disable biometric feature for all UPI applications in case of changes or UPI PIN is rest, the NPCI said. Additionally, if no such transactions occur within 90 days, the customer will be marked as inactive, and the UPI account will be reactivated only upon customer confirmation.
“By combining speed, security, and ease of use, biometric authentication will make UPI transactions simpler and more reliable for millions of users, including those who are new to digital finance,” Anil Sinha, chief technology officer at digital lending platform Fibe, told Mint.
“It will reduce barriers in everyday payments, improve transaction success, and make digital interactions more accessible and inclusive,” Sinha said, adding that an additional identity-verified layer through biometrics will “strengthen trust without adding complexity”.
The UPI platform processed 19.63 billion transactions in September 2025 worth ₹24.9 trillion, according to data from the National Payments Corporation of India. The volume of transactions was 1.9% lower month-on-month but 31% higher year-on-year. The value of UPI transactions stood at ₹24.85 trillion in August, 21% higher compared with the year-ago period.
“NPCI’s move to enable biometric authentication for UPI is a landmark step towards making digital payments more seamless and secure,” said Siddharth Mehta, co-founder of credit on UPI platform Kiwi. “Replacing PINs with face or fingerprint authentication will make transactions faster, safer, and more intuitive — especially for new-to-credit users.”
Third-party application provider (TPAP) Navi UPI said it is the first to have rolled out biometric authentication at scale. Since authentication occurs within the phone’s secure environment, personal data never leaves the device, making it one of the safest ways to pay, the company said in a statement.
“The feature aims to reduce failed transactions, improve ease of use, and offer stronger protection against phishing and social engineering risks,” it said.
RBI draft changes
The rollout follows the central bank’s issuance of a draft framework last month, which mandates two-factor authentication for all digital payments and encourages the use of authentication mechanisms beyond the most widely used SMS-based OTP.
On Monday, payment system operator RazorPay announced the launch of the country’s first biometric card authentication, access control server (ACS), in partnership with YES Bank.
The system will enable instant payments, eliminating OTP delays and delivering a smooth, one-click experience while keeping payments secure, reducing failures for banks, and ensuring higher conversions for businesses, the company said.
In India, 35% of payment failures are attributed to issues such as delayed or incorrect OTPs, according to RazorPay. At the same time, digital payment fraud is rising sharply, with losses exceeding ₹520 crore in FY25, according to RBI data.
