ATMs, PoS machines to scan UID biometrics
The RBI is understood to be preparing a directive for banks to introduce additional facilities in all new credit card swipe (Point of Sales, or PoS) machines and Automated Teller Machines (ATMs) for providing a mechanism for Aadhaar authentication using biometrics.
The central bank intends to have an Aadhaar-based authentication to provide additional security for card transactions. Although RBI seems to have accommodated to a combination of ‘chip and PIN’ authentication for existing customers and biometric checks for hitherto unbanked cardholders, the challenge is in the acceptance devices.
Banks are of the view that the additional facilities would significantly increase investment costs. The other challenge is that conventional phone lines may not work to transmit scanned fingerprint images for verification. As per banks, the new machines will require the equivalent of 3G data speeds to transmit biometric data.