Biometrics feature launched by Airtel as India steps up KYC

Digital payments have emerged in popularity in India, particularly through methods such as the Unified Payments Interface (UPI). However, with this rise in digital transactions comes an increased risk of financial fraud. To address this issue, biometrics is increasingly being adopted as a mainstream security measure for digital payments in the country.

Airtel is among the latest examples, introducing a face biometrics system to safeguard customer accounts from fraudulent activities.

Similarly, the Finance Ministry has granted approval for Aadhaar-based KYC authentication for various securities firms, and Niti Aayog is encouraging KYC checks for Pradhan Mantri Mudra Yojana (PMMY) loans, which could be a significant demand boost.

Airtel Payments Bank implements face biometrics to secure customer accounts

Airtel Payments Bank has unveiled Face Match, a facial recognition system that leverages machine learning algorithms to identify and prevent fraudulent activities, thereby improving the security of customer accounts.

The system employs analysis of diverse data points, including user behavior, transaction history, geographical location, and other relevant factors. Drawing from this information, the algorithms generate a threat score for each user, indicating the potential presence of fraudulent activity, the company says.

When the threat score exceeds a certain threshold, the Face Match feature is triggered. Users are prompted to capture a selfie within the Airtel Thanks mobile app, which is then compared to the user’s original photo from the onboarding process.

Airtel states that the system incorporates liveness detection to verify that the image is a real-time capture of the user and not a spoof, CXO Today reports. Upon successful recognition, the user is permitted to proceed with the transaction.

“By employing cutting-edge technology, we can effectively address potential threats while offering a seamless and secure banking experience. Our aim is to provide customers peace of mind through robust security measures and efficient account management,” says Anubrata Biswas, managing director and chief executive officer of Airtel Payments Bank.

Finance Ministry approves Aadhaar-based KYC for 15 securities firms

The Ministry of Finance in India has authorized multiple securities firms to conduct KYC customer verification using the national digital identity, Aadhaar. These firms include SBICAP Securities, IIFL Securities, and Angel One.

This announcement is in accordance with Section 11A of the Prevention of Money Laundering Act (PMLA). It serves as a strategic effort to enhance regulatory frameworks in preparation for the upcoming review by the Financial Action Task Force, as reported by StudyCafe.

The increasing adoption of Aadhaar-based biometric authentication by private enterprises reflects a growing movement aimed at encouraging the use of digital identity. Following the 2019 amendment to the Aadhaar Act, more stringent regulations have been put in place to restrict the use of Aadhaar to specific sectors such as banking and telecommunications.

KYC could also help the national small business loan program, according to an assessment carried out by KPMG.

A report on the Pradhan Mantri Mudra Yojana (PMMY) program released by Indian government think tank Niti Aayog last year proposed a set of guidelines aimed at enhancing the creditworthiness assessment and background verification of borrowers.

The report highlights the importance of utilizing KYC authentication in the loan underwriting process. Given that PMMY loans are free of collateral, the implementation of these guidelines has the potential to reduce instances of financial fraud.

Since its inception in 2015, the PMMY has disbursed approximately US$220.68 across 349.3 million accounts.

Article Topics

Aadhaar | Airtel | biometric authentication | biometric liveness detection | biometric payments | biometrics | face biometrics | financial services | India | KYC