Since its launch, the country's Unified Payments Interface (UPI) has received its most significant advancement in years, with the implementation of a game-changing step - PIN-less Payments.

From October 8th, users will be able to authorize payments using Face Recognition or Fingerprint instead of a numeric PIN, a move that is backed by the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) for greater convenience, superior safety, fraud prevention, and a more seamless payment experience for millions of users.

Major UPI Biometric Update: What’s New?

PhonePe, Paytm, and Google Pay users can now utilize fingerprint or facial recognition to verify their UPI transactions, rather than the traditional four- or six-digit PIN. The technology uses biometric data recorded in Aadhaar to match and securely authenticate each transaction. Here's a rundown of the latest upgrades:

• Replaced PIN with biometric authentication (face/fingerprint) for payment authorization.
• PIN authentication is still accessible as an alternative approach.
• The initial limit for on-device biometric UPI payments is capped at ₹5,000 per transaction, which will be adjusted after monitoring.
• This feature is only available on devices with fingerprint/face unlock capability.

How Does PIN-Free UPI Work?

When initiating a payment, users will be notified by their app to authenticate by using facial recognition or fingerprint scanning. The transaction will be completed post matching the biometric data with Aadhaar records. This process will be fully encrypted on the users’ devices, ensuring privacy and security.

Security and Privacy Enhancements

• Transactions are independently verified by issuing banks using robust cryptographic checks.
• Explicit consent is required before enabling biometric authentication; users can disable the feature anytime.
• Apps must seek fresh consent for every new device setup, ensuring protection if a user switches phones.

Additional Innovations

UPI Lite for Wearable Glasses

Users will now be able to execute Small Value Transactions with wearable glasses via UPI Lite. To authenticate and conclude small-value transactions, simply scan a QR code and provide a voice command to smart glasses.

According to the RBI Deputy Governor, T. Rabi Sankar, “This launch marks the first time UPI is extended to the wearable ecosystem, representing a step towards ‘ambient payments’ by enabling seamless digital payments. It also benefits banks and PSPs by reducing core banking system load through off-CBS wallet execution. Embedding UPI Lite on Smart Glasses enhances convenience for consumers and strengthens India’s leadership in digital payment innovation globally.”

Multi-Signatory UPI feature

The feature will power the multi-signatory or joint accounts on UPI to approve transactions together. Essentially useful for corporates, MSMEs, start-ups, trusts and other joint-account holders, the signatories can conveniently manage and approve payments from linked bank accounts.

Easy Access to Forex on Bharat Connect

The third big improvement is the debut of the FX Retail Platform with Bharat Connect, enabling users to effortlessly purchase foreign currency (US dollars) via their payment or banking apps.

• NBBL and CCIL developed a transparent pricing service that provides clients with real-time competitive exchange rates.

• Customers have multiple delivery options for USD, including currency notes, Forex Cards, and outward remittances.

• The integration streamlines the digital process, addressing challenges such as physical paperwork, inconsistent pricing, and long bank queues.