Technology
RBI Mandates 2-Step Biometric Verification for Large UPI Transfers to Curb Online Fraud
The Reserve Bank of India has introduced a mandatory two-step biometric authentication for high-value UPI transactions to unknown accounts, aiming to eliminate cyber fraud through online links.
The Reserve Bank of India (RBI) has issued a new directive requiring a two‑step biometric verification for any UPI transfer of a large amount to an unfamiliar account. The rule is designed to block cyber‑fraud schemes that exploit online links for illicit money transfers.
Under the new policy, users will need to provide two biometric inputs, such as a fingerprint and facial recognition, before the transaction can be completed. The verification step will be enforced by the UPI platform and cannot be bypassed.
The RBI says the measure will significantly reduce the risk of fraud through malicious links and protect consumers from unauthorized transfers. It also aims to strengthen the overall security of the UPI ecosystem.
The directive will take effect from the beginning of the next fiscal quarter, giving banks and payment apps time to integrate the additional authentication layer into their systems.
Under the new policy, users will need to provide two biometric inputs, such as a fingerprint and facial recognition, before the transaction can be completed. The verification step will be enforced by the UPI platform and cannot be bypassed.
The RBI says the measure will significantly reduce the risk of fraud through malicious links and protect consumers from unauthorized transfers. It also aims to strengthen the overall security of the UPI ecosystem.
The directive will take effect from the beginning of the next fiscal quarter, giving banks and payment apps time to integrate the additional authentication layer into their systems.