Announced at the second-quarter review of monetary policy, the move would make transactions at automated teller machines and point of sale terminals (PoS or merchant terminals) more secure.
RBI said: "One recommendation of the working group (with Gowri Mukherjee as chairperson) formed for securing card-present transactions was that banks could consider the Aadhaar biometric authentication, along with the MagStripe (magnetic stripe), as an additional factor of authentication for card-present transactions at ATMs and POS terminals."
Card-present transactions are those where cards are swiped into a machine or reader.
The central bank also said a pilot project using Aadhaar as an additional factor of authentication for card-present transactions had been scheduled in Delhi from November 15.
"Based on the outcome, further steps would be taken by the
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