The rollout coincides with the implementation of updated two-factor authentication (2FA) requirements by the Reserve Bank of India, which emphasise the use of dynamic and device-bound factors, including biometrics, to strengthen transaction security.
With the new system, users can authenticate payments, check balances, and withdraw cash without manually entering the UPI PIN.
Biometric verification is completed directly on the device, and Paytm or partner banks do not store or access users’ biometric data. In line with NPCI guidelines, biometric UPI transactions have a per-transaction limit of ₹5,000.
Cardless ATM withdrawals are now possible at participating ATMs by scanning the QR code displayed on the screen and verifying via Face ID, fingerprint, or UPI PIN, eliminating the need for a physical debit or ATM card.
Withdrawal limits generally remain up to ₹10,000 per transaction, depending on bank and UPI limits.
The enhancements are available on both Android and iOS devices and allow users to link multiple bank accounts for withdrawals, while retaining the option to use the UPI PIN if preferred.
Last week, Razorpay, an omnichannel payments platform for businesses, also introduced a biometric ‘Passkey’ solution for card transactions, in partnership with Mastercard and with integration from Visa expected soon.
