Tag: OTP

NPCI’s Planing to Eliminate OTPs and PINs for UPI Transactions

Biometric Authentication for UPI Transactions: NPCI Explores Partnerships with Startups

The National Payments Corporation of India (NPCI) is reportedly in talks with various startups to usher in a new era of biometric authentication for Unified Payments Interface (UPI) transactions. This potential collaboration aims to revolutionize the way users authenticate UPI payments, utilizing fingerprints for Android devices and face ID for iPhones, thereby replacing the current four or six-digit UPI PIN.

According to sources familiar with the matter, as reported by MoneyControl, this development comes shortly after the Reserve Bank of India (RBI) suggested exploring alternative methods for additional factor authentication (AFA) in digital transactions, indicating a strong regulatory and industry shift towards enhanced security measures.

These discussions between NPCI and startups primarily center around the financial and legal aspects of potential partnerships. Although both PIN and biometric authentication methods are expected to coexist initially, offering users multiple options for transaction verification, the move towards biometric authentication resonates with the RBI’s emphasis on more secure verification methods to combat financial fraud.

Currently, the UPI employs a two-factor authentication system, comprising device binding through SMS as the primary factor, and the UPI PIN as the secondary factor for transaction confirmation. The incorporation of biometric authentication seeks to not only bolster security but also enhance the overall user experience of UPI transactions.

While the specific timeline for the implementation of this groundbreaking change remains unclear, if realized, it has the potential to streamline the payment process and elevate the security standards for UPI transactions, fostering a more seamless and secure financial ecosystem for users across the board.

India Allows Foreigners Optional OTP Verification for Mobile Connection

Relaxed Norms for Foreign Nationals Getting Mobile Connections in India

The Indian government has recently announced the relaxation of norms for foreign nationals seeking mobile connections during their visit to the country. In an order dated July 31, the Department of Telecom (DoT) addressed the challenges faced by foreign visitors in obtaining mobile connections due to the inability to provide an alternate number for receiving a one-time password (OTP) as part of the digital KYC (D-KYC) process.

According to the DoT’s order, foreign nationals seeking mobile connections in India can now use their email address for receiving the OTP, making the provision of sending the OTP to a local number optional. The order states, “It has been decided by the competent authority that the requirement of obtaining signature of the customer by sending OTP on the alternate mobile number… is hereby made optional for issuing the mobile connections to the foreign nationals visiting India. Further, licensees may send OTP on the email of foreign nationals as an alternate method, if sending an OTP on an alternate number is not feasible.”

It’s important to note that this relaxation is applicable only for foreign nationals visiting India. This initiative aims to streamline the process of obtaining mobile connections for international visitors, easing the burden of providing an alternate mobile number and enabling them to utilize their email addresses for the OTP verification.

This development is expected to positively impact the experience of foreign nationals visiting India, facilitating smoother access to essential mobile communication services during their stay.

This step taken by the Indian government reflects a commitment to accommodating the needs of foreign visitors and enhancing the ease of conducting essential tasks such as obtaining mobile connections while in the country.