The majority of digital transactions in India are conducted through UPI. Each year, the number of payments made through UPI continues to reach new records. However, there is still a large section of the population that does not use UPI payments. The National Payments Corporation of India (NPCI), the agency that oversees digital payments in India, is planning a major upgrade to the UPI payment system. Users will no longer need to remember a PIN code to make UPI payments; they will be able to do so by using facial recognition or fingerprint authentication.
Biometric authentication
A recent report stated that NPCI is in talks with several companies regarding UPI payments using smartphone biometrics. In the near future, users will not need to remember a PIN or code for any UPI payment. Users will also have the ability to make online payments using the biometric features of their smartphones.
UPI payments without PIN
For example, when making a UPI payment to someone, users will not need to enter the UPI PIN. Instead, they will be able to use the biometric lock of their smartphone to make online payments. NPCI is exploring new technology to combat the rising cybercrime trends. Currently, smartphone users rely on apps like PhonePe, Amazon Pay, and PayTm to make UPI payments.
Millions of UPI users may struggle to remember the 6-digit PIN or code. With this upgraded UPI system from NPCI, users will now be able to make payments by using their thumbprint or facial recognition. This feature is expected to be very beneficial for UPI users in the future.
Meanwhile, in a major development, the Reserve Bank of India (RBI) has raised the transaction limit for tax payments via UPI from Rs 1 lakh to Rs 5 lakh per transaction. This announcement was made by RBI Governor Shaktikanta Das during the unveiling of the third bi-monthly monetary policy for the current financial year.
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