Digital payments major PhonePe recently claimed it to be the first in the country to launch the Aadhaar-based onboarding procedure for UPI registration.
This means that customers using PhonePe can now activate UPI using Aadhaar-based OTP.
Till now, customers had to compulsorily use a valid debit card for OTP authentication to set up UPI pin.
There are crores of bank account holders who do not have a debit card and thus have been refrained from accessing the benefits of UPI.
In order to deal with such situation, the Central government did away the need for a debit card to create UPI payment ID in its directive earlier in March 2022.
But to register with UPI without a debit card, it's mandatory to use the mobile number, which is registered with the bank account as well as the Aadhaar card.
The new Aadhaar-based OTP authentication will do away with the restriction of using debit card for UPI registration, said PhonePe.
"The addition of Aadhaar onboarding for UPI will do away with this restriction and allow previously under-served populations to experience the convenience and benefits of digital payments," the popular payment platform said in a press release.
How to activate UPI using Aadhaar OTP:
Open PhonePe app and go to profile page
Under the payment instruments tab, click on Add Bank Account
Choose the bank and verify the mobile number using OTP
The payments app will automatically obtain bank details and link them to UPI
Proceed to set up UPI pin
Choose Aadhaar option and fill the last six digits of the biometric number
Enter the OTP received and set up the UPI