Indian banks are all set to oppose RBI's circular advising banks to include biometric sensor in all new credit card swiping machines and ATMs to enable Aadhaar based payments, reports Economic Times. This comes at a time when the Indian government is trying to introduce The National Identification Authority of India Bill, 2010 bill in Parliament, despite significant criticism. Indian Bank's Association met recently to discuss the circular, which they feel is rushed and being implemented without understanding the implication it has on banks. These banks feel that they shouldn't have to spend crores to upgrade the infrastructure needed to enable biometric authentication. Apart from procuring ATMs that support this feature, they will also need to upgrade to broadband. The other issue they have is the high failure rate with biometric authentication, which means it could take longer for each transaction to be completed. Procuring these new ATMs won't be easy for the banks as they say there are not enough manufacturers who can supply ATMs or POS units that can accept traditional cards with magnetic strips, EMV pin and chip, as well as equipped with biometric readers for accepting Aadhaar-based transactions. It needs to be remembered that banks had voiced their discomfort over the use of biometric authentication for payments to the working group that was set up by RBI. The findings of this group are not known, as RBI has not put up the report on its website. That said, banks have started implementing parts of the RBI circular. For…
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