Indian Banks Mentioned to Quickly Use Face Recognition, Iris Scan for Some Transactions

The Indian authorities is permitting banks to confirm particular person transactions that exceed a sure annual restrict utilizing facial recognition and an iris scan in some instances, in a bid to cut back fraud and tax evasion, three sources advised Reuters.

A couple of giant personal and public banks have begun utilizing the choice, mentioned one of many sources, a banker, who declined to call the banks. The advisory permitting the verification isn’t public and has not beforehand been reported.

The verification isn’t obligatory and is meant for instances the place one other authorities identification card used for tax functions, the Permanent Account Number (PAN) card, isn’t shared with banks.

The prospect of banks utilizing facial recognition has involved some privateness specialists.

“This raises substantial privacy concerns especially when India lacks a dedicated law on privacy, cybersecurity and facial recognition,” mentioned Pavan Duggal, an advocate and cyber regulation skilled.

The authorities has mentioned it’s focusing on parliamentary approval of a brand new privateness regulation by early 2023.

The new measures might be used to confirm identities of people making deposits and withdrawals exceeding Rs. 2 million in a monetary 12 months, the place the Aadhaar identification card is shared as proof of establish, mentioned two authorities officers, who requested to not be named as a result of the knowledge isn’t public.

The Aadhaar card has a singular quantity tied to a person’s fingerprints, face and eye scan.

India’s finance ministry in December requested banks to take “necessary action” on a letter by the Unique Identification Authority of India (UIDAI), which recommended verification ought to be completed by means of facial recognition and iris scanning, particularly the place fingerprint authentication of a person fails.

The letter from the UIDAI, which is answerable for Aadhaar card issuance, makes no point out of a consent framework for the verification. Nor does it say that banks can take any motion if a buyer refuses.

Responding to Reuters’ queries, a UIDAI spokesperson mentioned Aadhaar verification and authentication occurs solely with the express consent of the consumer. Use of Aadhaar-based biometric authentication helps in guarding in opposition to attainable misuse, he mentioned.

“UIDAI regularly advises all authentication and verification entities to use face or iris authentications to cater to residents whose fingerprint authentication fails.” He added that authentication and verification doesn’t imply storing of information.

The newest advisory follows a authorities order final 12 months that mandated the quoting of an Aadhaar card or PAN quantity for making deposits or withdrawals exceeding 2 million rupees in a monetary 12 months.

The federal finance ministry didn’t reply to requests for remark.

© Thomson Reuters 2023