ENA Sectors 2024-08-08 17:04:53 <p><span style="font-size:14px"><strong>New Delhi, Aug 8 (KNN)</strong> The National Payments Corporation of India (NPCI) is set to enhance the security of Unified Payments Interface (UPI) transactions by integrating biometric authentication, according to recent reports.</span></p> <p><span style="font-size:14px">This move comes in response to growing concerns from the Reserve Bank of India (RBI) over the effectiveness of the current four-to-six digit PIN used for multifactor authentication (MFA).</span></p> <p><span style="font-size:14px">Rumours suggest that NPCI plans to enable fingerprint biometrics for Android devices and face ID verification for iPhones, adding a crucial layer of security to UPI transactions.</span></p> <p><span style="font-size:14px">Currently, UPI relies on device-based authentication via SMS during enrolment, with a PIN serving as secondary protection.</span></p> <p><span style="font-size:14px">The RBI's latest report highlights UPI fraud losses totalling 14.57 billion rupees (USD 175 million) for the fiscal year ending March 2024.</span></p> <p><span style="font-size:14px">With UPI accounting for 80 percent of Indias online transactions, the central bank is pushing for stronger authentication methods to address the 95,000 fraud cases reported in 2022-23.</span></p> <p><span style="font-size:14px">The RBI is set to publish a framework for alternative authentication methods, with a focus on biometrics. While NPCI has engaged with several startups for this initiative, the final partner is yet to be decided.</span></p> <p><span style="font-size:14px">NPCI is expected to accelerate the implementation of biometric authentication in the coming months to mitigate rising fraud risks.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38910 https://knnindia.co.in/news/newsdetails/sectors/npci-to-introduce-biometric-authentication-for-upi-to-combat-rising-fraud 2024-08-08 17:04:53 knnindia.co.in