NPCI BHIM Services Limited launches biometric authentication for UPI payments up to ₹5,000
NEW DELHI, INDIA – April 5, 2026 — NPCI BHIM Services Limited announced biometric authentication for the BHIM Payments App to simplify UPI transactions up to ₹5,000. The feature enables fingerprint or facial recognition approval, reducing PIN dependency. The launch arrives as UPI recorded 22.64 billion transactions worth ₹29.53 lakh crore in March 2026.
Announcement specifics
The feature allows BHIM users on Android and iOS devices to authorize payments up to ₹5,000 using device biometrics without entering a UPI PIN. Transactions exceeding ₹5,000 require traditional PIN verification. To enable: Open BHIM app, navigate to Profile, select bank account, toggle ‘Biometric Transactions’.
Stakeholder perspective
“BHIM Payments App has always focused on making digital payments simple, secure and accessible for every Indian.”
— Lalitha Nataraj, MD & CEO at NPCI BHIM Services Limited
Why it matters: The statement positions biometric authentication as a solution to PIN-related friction points including forgotten credentials and security vulnerabilities from PIN sharing.
“With biometric authentication, we are making everyday payments easier while strengthening trust in how they are approved.”
— Lalitha Nataraj, MD & CEO at NPCI BHIM Services Limited
Why it matters: On-device biometric data storage addresses shoulder-surfing risks while maintaining user control over authentication.
Industry context
UPI dominates India’s digital payments infrastructure, with February 2026 volumes reaching 20,394.18 million transactions valued at ₹26,84,229.29 crore. March volumes surged to 22.64 billion transactions. UPI commands 81% of India’s retail digital payments market. The biometric update addresses friction in low-value peer-to-peer transfers and merchant QR code scans, segments where transaction abandonment due to PIN entry remains a persistent challenge. The feature targets millions of users in tier-2 and tier-3 cities where small-value transactions constitute the majority of daily payment activity.
Conclusion
Biometric authentication positions BHIM for increased adoption by reducing transaction failures and enhancing user trust. The feature aligns with NPCI’s strategy for inclusive fintech expansion and further solidifies India’s leadership in real-time payments infrastructure.
Sources: The Fintech Times, NPCI, Republic World
