The Department of Financial Services (DFS) on Tuesday unveiled three new digital payment features aimed at making Unified Payments Interface (UPI) transactions faster, safer, and more accessible, particularly for first-time users, senior citizens, and rural communities. The announcement was made by DFS secretary M. Nagaraju at the Global Fintech Fest 2025 in Mumbai.
On-device biometric authentication for UPI payments
The first feature enables users to authorise UPI transactions using on-device biometric verification, such as fingerprint or face unlock, instead of entering a traditional UPI PIN. The option is completely optional and is verified by issuing banks using cryptographic checks, ensuring secure and faster payment authentication.
“This initiative allows users to leverage their smartphone’s built-in security features, making digital payments more convenient without compromising safety,” said Nagaraju.
Aadhaar-based face authentication for setting or resetting UPI PINs
The second feature focuses on simplifying the process of setting or resetting UPI PINs using Aadhaar-based face authentication through UIDAI’s FaceRD app. Users will no longer need debit card details or OTPs to create or modify their UPI PINs.
The feature is particularly designed to aid senior citizens and first-time users. In a later phase, the facility will also be extended to transaction authentication, further streamlining the payment experience.
Cash withdrawal via UPI at micro ATMs
The third feature allows users to withdraw cash at business correspondent touchpoints (UPI Cash Points) using a dynamic QR code. Transactions are authorised through the user’s UPI app, complementing existing Aadhaar-enabled and card-based withdrawals. This feature is expected to improve access to cash in underserved areas, boosting financial inclusion in remote and rural regions.
Expanding digital payments to rural and tribal areas
Addressing the challenges of deepening digital payments in rural and tribal areas, Nagaraju said, “Even with substantial growth in UPI, many communities still struggle with internet connectivity and inclusion in the formal financial system. Fintech companies are innovating to provide offline payment solutions, which will eventually allow the entire country to participate in digital payments.”
The three features collectively aim to make digital payments safer, more inclusive, and more user-friendly, aligning with India’s ongoing efforts to expand financial access across diverse socio-economic segments.
Conclusion
The DFS’s announcement reflects the government’s commitment to strengthening digital infrastructure and ensuring financial inclusion for all citizens. By enabling biometric authentication, Aadhaar-based UPI PIN management, and cash withdrawals at micro ATMs, these features are poised to simplify everyday transactions and bring more people into India’s digital economy.