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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

NPCI issues Introduction of Additional Authentication Methods in UPI

07-Oct-2025 | NPCI/UPI/OC-226/2025-26

NPCI has issued Introduction of Additional Authentication methods in UPI effective from 07th October 2025. Key Highlights: 1. UPI currently uses a UPI PIN (set via Aadhaar OTP, Debit Card credentials, or Issuer OTP) for transaction authentication. RBI guidelines now allow additional authentication methods to enhance user experience. 2. New optional authentication methods will be introduced: a. UIDAI Face Authentication for UPI PIN set/reset instead of Card credentials or Aadhaar OTP. b. On-device biometric authentication (fingerprint, face, etc.) for UPI transactions instead of UPI PIN, initially for transactions up to Rs. 5,000. 3. Implementation and security requirements: a. UPI applications, PSP Banks, and Issuer Banks must ensure device compatibility, security (e.g., no rooted/jailbroken devices), biometric enrolment, and strict adherence to UIDAI and other guidelines before enabling these methods. b. Customer consent is mandatory and can be withdrawn anytime. Issuer Banks must verify eligibility and credentials before enabling authentication and provide clear communication at enablement, disablement, or transaction processing. 4. Operational rules for biometric authentication: a. Biometric authentication will be disabled if the UPI PIN changes or resets until fresh consent is obtained. b. Fresh consent must also be captured after each device binding. c. Key rotation should occur within one year, and customers will be marked inactive if no transactions occur via this method for 90 days, reactivating only after confirmation. 5. These measures are optional, and users can continue using the existing UPI PIN authentication if preferred. For more information, please refer to the attached document.

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