The National Payment Corporation of India (NPCI) is introducing a new plan to make online payments more secure.
This change will affect how online payments are made, moving away from the traditional PIN password method.
New Authentication Methods
Currently, online payments require a 4 or 6-digit PIN password. However, NPCI is working with startups to introduce biometric authentication methods, such as face scans and fingerprints, for UPI-based payments.
This change follows a recent directive from the Reserve Bank of India (RBI), which has urged banks to explore new options for OTP and card transactions.
In the future, users may be able to authorize payments using fingerprint or face scan technology, similar to how face scan unlocks an iPhone.
RBI’s Stance on Online Fraud
The RBI has expressed concerns about online fraud, which it attributes to vulnerabilities in PIN passwords.
As a result, the RBI has directed banks to seek alternative authentication methods. It has been over three years since PIN-based mobile payments were introduced,
and NPCI is now preparing to roll out biometric-based UPI payments within the next three months.
Limitations of PIN Passwords
While PIN passwords are considered secure, their main drawback is that if someone learns your PIN, they can potentially access and transfer money from your account.
Biometric authentication, such as face scans and fingerprints, offers a higher level of security and is less susceptible to fraud.
This is why both NPCI and RBI are focusing on biometrics for more secure two-factor authentication.
