Biometric Authentication System Launched for Online Card Payments
A biometric authentication system using fingerprint and face recognition was launched for online card payments in India, aiming to replace SMS OTP and reduce fraud, in line with RBI guidelines.
A new biometric authentication system for online card transactions was launched in India by a group of e-commerce, banking, and payment companies working together. The system uses methods such as fingerprint and face recognition to approve a payment.
Until now, most card payments in India have been confirmed using a One-Time Password (OTP) sent by SMS. The new system is designed to replace this OTP step with biometric verification. The aim is to make digital payments safer and faster.
The change is meant to reduce common types of online fraud. SIM-swap fraud (where a criminal takes control of a victim's mobile number) and OTP interception become much harder when a payment needs the user's fingerprint or face. The system also uses device-binding, which links a payment to a specific trusted device.
The initiative follows the safety guidelines of the Reserve Bank of India, which has been encouraging stronger and alternative ways to authenticate digital payments beyond SMS-based OTP. For aspirants, the key point is the shift towards biometric and risk-based authentication in India's digital payment system.
Key Points to Remember
- Biometric authentication launched for online card transactions in India
- Uses fingerprint and facial recognition instead of SMS-based OTP
- Aims to reduce SIM-swap fraud and OTP interception
- Uses device-binding for added security
- Aligned with Reserve Bank of India (RBI) guidelines on payment authentication
Exam Relevance
Relevant for Banking exams (IBPS/SBI/RBI — Payment Systems), UPSC, and SSC CGL (General Awareness — Economy & Technology).
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