Indian Banks to Adopt Aadhar Based Biometric Authentication

Reserve Bank of India (RBI) has mandated use of biometric authentication for electronics payment across all the banks

India: RBI recently announced the mandatory implementation of Aadhar based biometric authentication for electronics payment across all scheduled commercial banks, urban banks, cooperative banks and ATM operations. RBI undertook this step under the guidance of Ministry of Finance for improving security as the country is facing widespread shift toward cashless transaction. RBI suggested that the new authentication method will be far more advanced than current two-factor methods.

RBI has instructed all other banks to make necessary arrangement such as host-end, network level and device readiness to adhere to biometric authentication towards electronics payment. 

TechSci Research depicts that adoption of biometric in Indian banks will pave way for boosting biometric market across the country in coming years as it provides accuracy and safety to avoid fraudulent. The implementation of biometric in all central banks for electronic payment transaction will bring in more transparency and efficiency in the system. 

According to recent report published by TechSci Research, “India Biometrics Market By Type By End Use Sector, Competition Forecast & Opportunities, 2011-2021”, the country’s biometrics market is projected to grow at a CAGR over 31% during 2016 - 2021. In 2015, the country’s southern region held the largest share in India biometric market, owing to rising industrialization and presence of a large number of leading private sector companies in the region. Government, banking & finance, energy & power, and consumer electronics are the key end user segments where deployment of biometric systems is witnessing an increase, and this trend is expected to continue over the next five years.