India has taken another big step towards digital payments. The Reserve Bank of India (RBI) has recently approved a facility through which UPI payments and cash withdrawal from ATMs can now be done without PIN. With this decision, while the transaction experience will be faster and easier, new technology will also be adopted regarding security.

What is the new change?

RBI has changed the rules regarding ‘contactless and limited amount transactions’. Under this, it will no longer be necessary to enter PIN for low-value payments. This facility will be applicable on both UPI (Unified Payments Interface) and card based transactions.

How will UPI payment be done without PIN?

In the new system, UPI transactions will be completed through biometric, face recognition or device authentication. This means that if the customer is identified through some other trusted means, then there will be no need to enter the 4 or 6 digit UPI PIN.

Currently this facility will be implemented on transactions up to ₹5000. This limit may also be increased in future.

Will withdrawal from ATM be possible without PIN?

Yes, RBI is now working on making card-less cash withdrawal easier. Under this, customers will be able to authenticate at the ATM with UPI QR code or biometric/face ID, and withdraw money — that too without entering their debit card or PIN.

The idea behind this facility is to provide people with fast, simple and secure transactions without any physical contact, especially keeping in mind the post-pandemic world.

What is the security guarantee?

RBI has clarified that this facility will be applicable only on trusted devices and authenticated platforms. Additionally, measures like biometric/face authentication will make this new system even more secure. The transaction limit has been kept limited so that the risk of fraud is reduced.

What will be the impact for customers?

Small payments and withdrawals will now be easier and faster.

The problem of forgetting PIN will end.

Enhanced security with options like biometrics and face ID.

More convenient for the elderly and those less familiar with technology.

This step of RBI is being considered as a revolutionary initiative under the Digital India Mission. This change could completely change the way you conduct everyday financial transactions in the coming months.

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