What New Features Has the Centre Introduced for UPI Transactions?
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Synopsis
On October 7, the Indian government launched groundbreaking features for UPI transactions, including biometric authentication and Aadhaar-linked face verification. These advancements promise to make payments faster, more secure, and user-friendly, particularly for senior citizens and first-time users. Discover how these innovations enhance the digital payment landscape.
Key Takeaways
- UPI now supports on-device biometric authentication.
- Aadhaar-based face authentication streamlines UPI PIN management.
- Enhanced security measures for digital transactions.
- Inclusive features cater to senior citizens and first-time users.
- New cash withdrawal options enhance accessibility.
Mumbai, Oct 7 (NationPress) On Tuesday, the government unveiled a series of innovative features such as UPI with on-device biometric authentication, providing a seamless, secure, and user-friendly alternative to the traditional PIN-based UPI authentication. Additionally, Aadhaar-based face authentication is now integrated into UPI, enabling Aadhaar-linked biometric authentication for setting or resetting UPI PINs, along with a new cash withdrawal method through micro-ATMs using UPI at UPI cash points.
Shri M. Nagaraju, IAS, the Secretary of the Department of Financial Services within the Ministry of Finance, made these announcements during the Global Fintech Festival (GFF) 2025.
The newly launched offerings include UPI with On-Device Biometric Authentication, which allows customers to authenticate payments directly via their smartphone's built-in security features, such as fingerprint or face unlock, eliminating the need for manual UPI PIN entry.
This feature empowers users who opt in, allowing them to choose their preferred authentication method.
The initiative aims to accelerate and enhance payment security by minimizing the frequency of PIN entries. Each transaction is independently verified by the issuing bank through robust cryptographic checks, assuring a high level of safety while maintaining a simple and seamless experience.
Aadhaar-based Face Authentication within UPI introduces a secure method for users to set or reset their UPI PINs right within UPI applications.
Previously, creating a UPI PIN required inputting debit card details or completing Aadhaar OTP verification. The Aadhaar-based Face Authentication streamlines the onboarding process, making it faster, simpler, and more inclusive, particularly for first-time users, senior citizens, and individuals without easy access to cards.
This solution utilizes UIDAI’s ‘FaceRD App’ for Aadhaar facial verification, removing the need to manage multiple OTPs or card details, thereby enhancing both convenience and security. This feature will also be extended for transactions requiring additional authentication.
The DFS Secretary also announced the introduction of UPI as a novel method for cash withdrawals through Micro ATMs at UPI Cash Points.
This launch signifies a pivotal advancement towards making the cash withdrawal process more inclusive and user-friendly, harnessing the versatility of UPI’s digital payment ecosystem.
Point of View
I see the recent UPI enhancements as a significant leap toward a more inclusive and secure digital payment landscape in India. These innovations not only address user convenience but also prioritize the safety and accessibility of financial transactions for all citizens, reinforcing our commitment to a digitally empowered nation.
NationPress
07/10/2025
Frequently Asked Questions
What is on-device biometric authentication in UPI?
On-device biometric authentication allows users to authenticate UPI payments directly through their smartphone's built-in security features, such as fingerprint or facial recognition, instead of using a traditional PIN.
How does Aadhaar-based face authentication work in UPI?
Aadhaar-based face authentication uses UIDAI's 'FaceRD App' to verify a user's identity through facial recognition, enabling them to set or reset their UPI PIN directly in UPI apps.
What are the benefits of these new features?
These features enhance security, streamline the payment process, and make UPI more accessible, particularly for senior citizens and first-time users.
Can users choose their authentication method?
Yes, users will have the option to opt in and select their preferred mode of authentication.
What is the significance of UPI cash withdrawals through micro-ATMs?
Introducing UPI for cash withdrawals at micro-ATMs enhances the accessibility of cash withdrawal services, making it more user-friendly and inclusive.
