FB pixel

Aadhaar authentication may be required for large Indian bank transactions


India’s government is considering requiring biometric or other Aadhaar authentication methods for cash deposits and withdrawals above a certain threshold in order to reduce fraud, according to a report by the Times of India.

Bank customers in India typically transact using their permanent account numbers (PANs), but amendments in a proposed Finance Bill would mandate Aadhaar authentication, via electronic KYC, biometrics, or a one-time password (OTP), for high-value transactions. The requirement would also be applied to property transactions.

A representative of the government told TOI that it is seeking a way to track transactions above a certain amount without causing hardship for smaller transactions. The limits are yet to be established, but Aadhaar authentication requirements may start at 2 to 2.5 million rupees (US$29,000 to 36,000) in annual deposits or withdrawals. A system may be developed to avoid authentications for every transaction at small shops, or by shop-owners depositing revenues.

India’s government has been attempting to gather data on an increasing number of cash transactions, such as jewelry and property purchases, to combat the money laundering and black money.

The central bank of India announced an update earlier this year allowing commercial banks in the country to use offline Aadhaar checks to meet KYC requirements, and the government has been attempting to determine appropriate authentication rules since the Supreme Court ruled Aadhaar does not have the legal basis for use by private entities.

Article Topics

 |   |   |   |   | 

Latest Biometrics News


Challenges in face biometrics addressed with new tech and research amid high stakes

Big biometrics contracts and deals were the theme of several of the stories on that drew the most interest from…


Online age verification debates continue in Canada, EU, India

Introducing age verification to protect children online remains a hot topic across the globe: Canada is debating the Online Harms…


Login.gov adds selfie biometrics for May pilot

America’s single-sign on system for government benefits and services, Login.gov, is getting a face biometrics option for enhanced identity verification…


BIPA one step closer to seeing its first major change since 2008 inception

On Thursday, a bipartisan majority in the Illinois Senate approved the first major change to Illinois Biometric Information Privacy Act…


Identity verification industry mulls solutions to flood of synthetic IDs

The advent of AI-powered generators such as OnlyFake, which creates realistic-looking photos of fake IDs for only US$15, has stirred…


Idemia discusses faster police operations, improved outcomes with livescan biometrics

Biometrics, and fingerprints in particular, have long been one of the pillars of forensics work performed by police and crime…


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read From This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events