Banks want more time for biometric card authentication

RBI mandated banks that all new cards must be enabled for both EMV chip and PIN and Aadhaar (biometric validation) acceptance

Banks will approach the Reserve Bank of India for more time to introduce Aadhaar biometric validation as an additional measure of authentication for card transactions.

RBI, on November 26, had told banks that all new cards must be enabled for both EMV chip and PIN and Aadhaar (biometric validation) acceptance. Senior bank executives said details needed to be worked out on the utility of biometric features, cost implications of introducing such features across the network and the time required to make the infrastructure capable for such features.

RBI took a review of the growth of the card payment system and the scalability and effectiveness of Aadhaar before asking banks to adopt Aadhaar-based authentication for these transactions.

For cards where EMV norms were not mandated, RBI had given banks discretion to decide whether they would adopt Aadhaar as an additional factor of authentication or move to EMV chip and pin technology.

RBI's working group on the subject, chaired by Gowri Mukherjee, had advised testing the feasibility of using Aadhaar as an additional factor of authentication for domestic transactions.