Paytm has unveiled two significant features aimed at improving user convenience: biometric authentication for UPI payments and the ability to withdraw cash from ATMs without a physical card. With these enhancements, users can now authorise transactions using Face ID or fingerprint recognition, providing an option beyond the traditional UPI PIN.

The introduction of cardless ATM withdrawals allows users to access cash directly through the Paytm application. This functionality eliminates the need for an ATM card, streamlining the cash withdrawal process, particularly for those who may not have a physical card on hand.

These updates come in response to new directives from the Reserve Bank of India regarding two-factor authentication, which were mandated from April 1, 2025. Under this new framework, digital payment transactions require verification through multiple methods, including PINs, passwords, secure tokens, or biometrics.

Details on Biometric Authentication

Paytm has confirmed that the biometric authentication feature is compatible with both Android fingerprint sensors and Face ID on Apple devices. Importantly, the company has assured users that no biometric data is stored or accessed by Paytm or any banking partners, thereby reinforcing commitments to user privacy and data safety.

According to the guidelines set by the National Payments Corporation of India (NPCI), biometric UPI payments will be limited to Rs 5,000 per transaction. This measure is intended to provide an additional layer of security while facilitating quick and easy payments for users preferring biometric methods.

Additionally, users who opt for traditional payment methods can still utilise the UPI PIN, ensuring that those who are more comfortable with established procedures are not overlooked. This dual option promotes inclusivity within the digital payment ecosystem.

Cardless ATM Withdrawals Procedure

The process for cardless ATM withdrawals is straightforward. Users must have a bank account linked to their Paytm UPI. To initiate the withdrawal at a participating ATM, users select the “UPI Cash Withdrawal” option, input the amount desired, and scan a QR code displayed on the ATM screen using the Paytm application.

After the user verifies a UPI PIN, the ATM will dispense the requested amount, with an immediate confirmation displayed on the app for user convenience. This seamless integration of technology aims to simplify cash transactions and enhance overall customer satisfaction.

There is a limit on the amount that can be withdrawn using this method, with a cap set at Rs 10,000 per transaction. This threshold is designed to ensure secure cash access while managing risks associated with cardless transactions.

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