BT Online New Delhi Last Updated: October 26, 2016 | 16:56 IST
Biometric authentication at ATMs could significantly reduce the risks in future of data breach that forced banks to block ATM cards earlier this month.
The Aadhaar-based biometric authentication can significantly help promote secure transactions and prevent frauds provided you make sure you link your Aadhaar card to your bank account.
These ATMs and POS (Point of Sale) machines will authenticate transactions using the unique Aadhaar identity number-linked biometrics for safer ATM transactions.
Which also means the ATMs of the future could require your fingerprint or retinal scan to verify debit/credit card transactions.
We will know this when the banks decide to roll out new ATMs next year based on the guidelines issued by the RBI.
Should you be worried about the banking data breach?
According to an RBI notification issued last month, with the increase in number of Aadhaar card holders, banks have been advised to ensure that the new card acceptance infrastructure be enabled for processing payment transactions using Aadhaar-based biometric authentication with effect from next year.
This move has gained more relevance after the recent security breach that put a risk to as many as 32 lakh debit cards in the cyber malware attack that affected over 19 banks.
The Aadhaar card authentication comprises of a two-factor authentication mechanism, as suggested by RBI, to prevent any future cyber theft.
The two-factor mechanism refers to what the card user knows, which is the PIN number, and does, which in this case is biometric scan, in order to complete a transaction.
Through this move, RBI takes banks and users one step closer to a future of cashless transactions.