FinaGuardAI as a Second Factor Authentication Mandated by RBI for Banks and NBFCs

 

The financial sector in India is undergoing a digital transformation, with banks and Non-Banking Financial Companies (NBFCs) embracing technology to enhance customer experience and streamline operations. However, this shift has also amplified the risk of cyber threats, including identity theft, phishing, and unauthorized access to accounts. Recognizing these vulnerabilities, the Reserve Bank of India (RBI) has increasingly emphasized the importance of robust security measures, particularly two-factor authentication (2FA), to safeguard the financial ecosystem. In this context, FinaGuardAI emerges as a cutting-edge biometric solution that banks and NBFCs can adopt as a second factor of authentication, aligning with RBI’s mandates and elevating security standards. This blog explores how FinaGuardAI can be implemented as a mandated 2FA solution, its benefits, and its potential to reshape financial security in India.

The RBI’s Push for Enhanced Authentication

The RBI has long advocated for stronger authentication mechanisms to protect customers and institutions from escalating cyber risks. In its Guidelines on Regulation of Payment Aggregators and Payment Gateways (2020) and subsequent circulars, the RBI has mandated the use of 2FA for digital transactions, emphasizing that relying solely on passwords or OTPs (one-time passwords) is insufficient against sophisticated attacks. OTPs, for instance, can be intercepted via SIM swapping or phishing, while passwords are prone to being stolen or guessed. The RBI’s Master Direction on Digital Payment Security Controls (2021) further underscores the need for multifactor authentication incorporating at least two distinct elements—something the user knows, has, or is.

Biometric authentication, classified as the second factor, has gained traction as a secure and user-friendly option. With the RBI encouraging innovation in security practices, FinaGuardAI—a smart multifactor authentication solution leveraging AI-driven face recognition, gesture detection, and liveliness checks—offers an ideal framework for banks and NBFCs to comply with these mandates while enhancing customer trust.

 How FinaGuardAI Works as a Second Factor Authentication

FinaGuardAI integrates advanced biometric technology into existing authentication workflows, serving as a robust second layer of verification. Here’s how it functions:

1. Liveliness Check: The process begins with a real-time liveliness assessment to confirm that the user is physically present. Using a device’s camera, FinaGuardAI analyzes facial features and eye movements, prompting the user to blink a specific number of times or perform hand gestures like a thumbs-up or peace sign. This step ensures that the system isn’t being fooled by static images, videos, or deepfakes.

2.Face Verification: After passing the liveliness check, FinaGuardAI captures the user’s image and compares it with the profile photo stored in the institution’s customer records. With a match accuracy exceeding 99%, the system confirms the user’s identity, issuing an approval only when the biometric data aligns.

3.Seamless Integration: Designed for flexibility, FinaGuardAI can be embedded into mobile banking apps, web platforms, or employee portals, operating entirely within the institution’s data center. This eliminates reliance on external APIs, ensuring compliance with RBI’s data localization norms.

When paired with a primary factor like a password or OTP, FinaGuardAI fulfills the RBI’s 2FA requirement by adding a biometric layer that’s uniquely tied to the individual, making unauthorized access exponentially harder.

Implementing FinaGuardAI Under RBI Mandates

The RBI’s directives provide a clear framework for banks and NBFCs to adopt FinaGuardAI as a second factor of authentication across various use cases. Here’s how it can be enforced:

1. Securing Digital Transactions
For online banking, UPI payments, or fund transfers, the RBI mandates 2FA to protect customers from fraud. FinaGuardAI can complement OTPs by requiring a biometric check for transactions above a certain threshold (e.g., ₹50,000). Before approving a high-value transfer, the app prompts the user to perform a liveliness check and face verification, ensuring the transaction is initiated by the legitimate account holder.

 2. Enhancing Account Login Security
RBI guidelines emphasize secure access to banking services. FinaGuardAI can replace or supplement traditional login methods, requiring users to authenticate biometrically after entering their password. This prevents account takeovers, even if credentials are compromised, and aligns with the RBI’s focus on reducing phishing-related losses.

 3. Protecting NBFC Operations
NBFCs, such as those offering gold loans or microfinance, often operate in high-risk environments where employee fraud or customer impersonation is a concern. FinaGuardAI can be mandated for employee logins to critical systems or customer verification during loan disbursal and closure. For instance, an NBFC employee issuing a ₹5 lakh gold loan would need to pass a biometric check, ensuring accountability and authenticity.

 4. Strengthening ATM and POS Transactions
While ATMs typically rely on PINs, integrating FinaGuardAI into next-generation machines with cameras could add a biometric second factor, as encouraged by RBI’s push for innovation. Similarly, at Point of Sale (POS) terminals, merchants could use FinaGuardAI-enabled devices to verify high-value card transactions, reducing card-not-present fraud.

5. Compliance with KYC Norms
The RBI’s Know Your Customer (KYC) guidelines require periodic re-verification of customer identities. FinaGuardAI can streamline this process by conducting biometric checks during account updates or dormant account reactivation, ensuring that the customer remains the same individual registered with the institution.

 Benefits of FinaGuardAI for Banks and NBFCs

Adopting FinaGuardAI as an RBI-mandated 2FA solution offers numerous advantages:

- Regulatory Compliance: By incorporating biometric authentication, institutions meet RBI’s 2FA and data localization requirements, avoiding penalties and enhancing audit readiness.
- Heightened Security: The combination of liveliness checks and face recognition thwarts common attack vectors like credential stuffing, SIM cloning, and deepfake spoofing.
- Data Privacy: With all AI processing confined to the institution’s servers, FinaGuardAI ensures sensitive biometric data remains secure and compliant with the *Personal Data Protection Bill* (pending legislation).
-Scalability: Its horizontally scalable architecture supports millions of users, making it viable for large banks and growing NBFCs alike.
- Cross-Platform Compatibility: Available on Android, iOS, and web, it caters to diverse customer bases and operational needs.
-Cost Efficiency: By reducing reliance on external vendors and minimizing fraud losses, FinaGuardAI offers a cost-effective long-term solution.

A Hypothetical Case Study

 A mid-sized bank, plagued by a surge in fraudulent transactions, adopts FinaGuardAI. Initially, it integrates the solution into its mobile app, requiring biometric verification for transactions above ₹25,000. Within months, the bank reports a 70% drop in unauthorized transfers, as fraudsters fail to bypass the liveliness and face checks. Meanwhile, an NBFC specializing in gold loans uses FinaGuardAI to authenticate employees and customers during loan processing, eliminating a ring of insider fraud. The RBI praises both institutions as models of compliance, boosting their reputation and customer confidence.


 The Future of Financial Security in India

As cyber threats evolve, the RBI’s emphasis on multifactor authentication will only grow stronger. FinaGuardAI positions banks and NBFCs at the forefront of this shift, offering a scalable, secure, and RBI-compliant solution that bridges innovation and regulation. By mandating its adoption, the RBI could set a global benchmark for biometric 2FA, deterring fraud and fostering trust in India’s digital economy.

Conclusion

FinaGuardAI is more than a tool—it’s a strategic asset for banks and NBFCs navigating the RBI’s stringent security landscape. As a second factor of authentication, it combines cutting-edge AI with practical application, protecting customers, employees, and institutions alike. In a world where financial crime knows no boundaries, FinaGuardAI offers a boundary of its own—one that fraudsters can’t cross.

Don’t wait for fraud to impact your business. Take action today!

📞 Contact Finahub for a Demo
📧 Email us at [email protected]
📱 Call us at +91 9745108885

Combating Mule Accounts in Banks with FinaGuardAI: A Revolutionary Authentication Solution

In the ever-evolving landscape of financial crime, one of the most insidious threats banks face today is the rise of mule accounts. These accounts, operated by individuals—often unwittingly—on behalf of criminals, are used to launder money, obscure illicit transactions, and evade detection. For banks, identifying and stopping mule accounts is a daunting challenge, as perpetrators continuously adapt their tactics to bypass traditional security measures. Enter FinaGuardAI, a smart multifactor authentication solution developed to enhance security and provide banks with a powerful tool to detect and prevent mule account activity. In this blog, we’ll explore the mule account problem, how FinaGuardAI works, and why it’s an ideal solution for banks looking to safeguard their systems and customers.

 Understanding the Mule Account Problem

A "money mule" is someone who allows their bank account to be used to move illegally obtained funds, often as part of a larger criminal scheme like phishing, fraud, or drug trafficking. Mules can be willing participants lured by promises of easy money, or they can be victims themselves, tricked into believing they’re performing legitimate tasks. Once the funds pass through the mule account, they’re quickly transferred elsewhere, making it difficult for authorities to trace the money back to its criminal origins.

For banks, mule accounts pose a dual threat: they undermine the integrity of financial systems and expose institutions to regulatory penalties and reputational damage. Traditional detection methods—relying on transaction monitoring, behavioral analytics, or manual investigations—often fall short because mules blend in with legitimate customers until suspicious activity is flagged, which can be too late. Moreover, the use of stolen identities or synthetic identities (fake identities built from real and fabricated data) complicates the verification process, allowing criminals to open accounts under false pretenses.

What banks need is a proactive, real-time solution that verifies the authenticity of the account holder at critical touchpoints, ensuring that the person behind the account is who they claim to be. This is where FinaGuardAI steps in.

How FinaGuardAI Works

FinaGuardAI is an innovative biometric authentication platform that leverages artificial intelligence to combine face recognition, gesture detection, and liveliness checks into a seamless, secure verification process. Unlike traditional password-based or OTP (one-time password) systems, which can be intercepted or shared, FinaGuardAI uses dynamic, user-specific biometric data that’s nearly impossible to replicate or forge.

Here’s a breakdown of how it operates:

1. Liveliness Check: The process begins with a real-time assessment to ensure the user is a live person, not a photo, video, or deepfake. FinaGuardAI uses the device’s camera to analyze facial features and eye movements, prompting the user to blink a specific number of times or perform hand gestures like a thumbs-up or victory sign. The AI confirms compliance, capturing an image of the user in the process.

2. Face Verification: Once liveliness is confirmed, FinaGuardAI compares the captured image with the customer’s profile photo stored in the bank’s records. Using advanced facial recognition algorithms, it achieves a match accuracy of over 95%, providing a reliable “OK” signal only when the identities align.

3. Integration and Scalability: FinaGuardAI integrates effortlessly into web and mobile banking applications, operating entirely within the bank’s data center. This ensures sensitive biometric data never leaves the premises, while its horizontally scalable architecture can handle any volume of users.

This multi-layered approach makes FinaGuardAI a robust tool for authentication, but its real power lies in how it can be applied to detect and prevent mule accounts.

Using FinaGuardAI to Detect Mule Accounts

Mule accounts often rely on exploiting weaknesses in identity verification during account opening or transaction initiation. Criminals may use stolen credentials, manipulate documents, or coerce mules into performing actions on their behalf. FinaGuardAI addresses these vulnerabilities by adding a biometric gatekeeper at key stages of the banking process. Here’s how banks can deploy it to tackle mule accounts:

 1. Enhanced Account Opening Verification
When a new account is opened, banks typically verify identity through documents like passports or driver’s licenses. However, these can be forged or stolen. FinaGuardAI introduces a biometric liveliness check and face verification as part of the onboarding process. If the person opening the account doesn’t match the photo on file—or fails to perform the requested gestures—it raises an immediate red flag. This prevents criminals from using synthetic identities or proxies to establish mule accounts.

2. Transaction Authentication for High-Risk Activities
Mule accounts are often used for high-value transactions, such as transferring large sums of money or changing account details like PINs or linked cards. FinaGuardAI can be configured as a mandatory second-factor authentication for these activities. For example, before a $10,000 transfer is approved, the user must pass a liveliness check and face verification. If a mule attempts to act on behalf of a criminal using a compromised account, the mismatch between the live user and the account holder’s stored image will block the transaction.

 3. Continuous Monitoring for Dormant Accounts
Mule accounts sometimes lie dormant until activated for illicit purposes. FinaGuardAI can be used to re-verify account holders when they log in after a period of inactivity. A sudden login from a user who fails the biometric check could indicate that the account has been taken over by a mule or hacker, prompting further investigation.

 Advantages of FinaGuardAI for Banks

Beyond its ability to detect mule accounts, FinaGuardAI offers several benefits that make it a game-changer for financial institutions:

- Data Security: All biometric processing occurs within the bank’s data center, eliminating the need for external API calls and ensuring compliance with data privacy regulations like GDPR or CCPA.
- Cost-Effectiveness: As a scalable solution, FinaGuardAI can serve as a primary or secondary authentication method without requiring expensive hardware or third-party services.
- User-Friendly Experience: The system’s intuitive prompts (e.g., blinking or gesturing) are easy for customers to follow, reducing friction while enhancing security.
- Cross-Platform Support: Available on Android, iOS, and web, it fits seamlessly into any banking ecosystem.

Real-World Impact: A Case Study

Imagine a regional bank noticing a spike in suspicious transfers linked to newly opened accounts. Traditional monitoring flags these transactions after the fact, allowing funds to disappear. By integrating FinaGuardAI, the bank mandates biometric verification for account openings and high-value transactions. Within weeks, several attempts to open accounts with mismatched identities are blocked, and a dozen high-risk transactions are halted when the user fails the liveliness check. The bank not only prevents losses but also provides law enforcement with actionable data—captured images and timestamps—to pursue the perpetrators.

 Challenges and Considerations

While FinaGuardAI is a powerful tool, banks must address potential challenges. Customers with limited access to cameras or those uncomfortable with biometric data may resist adoption, requiring clear communication about security and privacy. Additionally, the system’s 99% match threshold, while highly accurate, leaves a small margin for false positives, which could frustrate legitimate users. Fine-tuning the AI and offering fallback options (like customer support verification) can mitigate these issues.
 

 Conclusion

Mule accounts are a persistent threat to the banking industry, but they’re not invincible. FinaGuardAI offers a proactive, biometric-based solution that strengthens identity verification, deters fraud, and protects both banks and their customers. By integrating this technology into account management, transaction processing, and employee authentication, banks can stay ahead of criminals and build a more secure financial ecosystem. As the fight against financial crime intensifies, tools like FinaGuardAI are not just an advantage—they’re a necessity.

Don’t wait for fraud to impact your business. Take action today!

📞 Contact Finahub for a Demo
📧 Email us at [email protected]
📱 Call us at +91 9745108885

Stopping Loan Fraudsters in Their Tracks: How FinaGuardAI Can Revolutionize Vehicle Loan Security

 

The world of finance is constantly evolving, and so are the tactics of fraudsters. One area particularly vulnerable to manipulation is vehicle loans. Identity theft and the fraudulent use of Know Your Customer (KYC) documents are rampant, leading to significant losses for both financial institutions and unsuspecting individuals whose identities are stolen. But what if there was a robust solution to combat this fraud? Enter FinaGuardAI, a cutting-edge multifactor authentication system that promises to revolutionize vehicle loan security.

The KYC Vulnerability: A Gateway to Fraud 

The traditional KYC process, while designed to verify customer identity, is increasingly exploited by criminals. Stolen or forged KYC documents can be used to secure loans under false pretenses, leaving the actual identity holder in a precarious financial situation. Loan Fraudsters often target vulnerable individuals, coercing them into providing their KYC details, which are then used to obtain multiple loans. These loans are rarely repaid, leaving the financial institution with a massive loss and the individual whose identity was stolen with a damaged credit score and potential legal battles.

The current KYC process often relies on manual verification, which is time-consuming and prone to human error. Fraudsters are becoming increasingly sophisticated in their methods, making it difficult for financial institutions to detect fraudulent applications. This vulnerability makes the vehicle loan sector a prime target for criminal activity.

 

FinaGuardAI: A Multifaceted Approach to Security 

FinaGuardAI offers a powerful solution to these challenges by implementing a robust, AI-driven multifactor authentication system. It goes beyond traditional KYC verification by incorporating biometric authentication, specifically face and gesture recognition, and liveliness checks. This layered approach significantly enhances security and makes it much harder for fraudsters to succeed.

How FinaGuardAI Works in Vehicle Loan Applications:

1. Initial KYC Verification: The traditional KYC process remains the first step. Applicants submit their documents as required.

2. Liveliness Check: FinaGuardAI then prompts the applicant to perform a series of actions in real-time, such as blinking a certain number of times or performing specific hand gestures. This crucial step ensures that the person applying for the loan is actually present and not a recording or a still image being used. The system's AI analyzes the user's eye movements and gesture performance to verify compliance. This acts as a powerful deterrent against using stolen photos or videos.

3. Face Verification: During the liveliness check, FinaGuardAI captures a facial image of the applicant. This image is then compared against the photograph on the submitted KYC documents. The system's advanced facial recognition algorithms analyze multiple facial features to ensure a high degree of accuracy. A match exceeding a pre-defined threshold (e.g., 95%) confirms the applicant's identity.

4. Integration with Loan Application System: FinaGuardAI seamlessly integrates with the existing loan application system. The authentication process can be triggered at various stages of the application, such as during the initial application submission, loan approval, or disbursement.

    

   Benefits of FinaGuardAI for Vehicle Loan Security: 

    

   Enhanced Fraud Prevention: The combination of liveliness checks and facial recognition makes it significantly harder for fraudsters to use stolen or forged KYC documents. The real-time nature of the authentication process makes it virtually impossible to impersonate someone else.

   Reduced Risk for Financial Institutions: By preventing fraudulent loans, FinaGuardAI helps financial institutions minimize their losses and protect their reputation. This leads to a more stable and secure lending environment.

   Improved Customer Experience: While adding an extra layer of security, FinaGuardAI can also streamline the loan application process. Biometric authentication is often faster and more convenient than traditional methods, leading to a better customer experience.

   Data Security: FinaGuardAI prioritizes data security by ensuring that all sensitive information, including facial images, remains within the financial institution's data center. This eliminates the risk of data breaches associated with external API calls.

   Scalability and Flexibility: FinaGuardAI is designed to be scalable and can be easily integrated into existing systems. It supports multiple platforms, including web and mobile applications, making it a versatile solution for various lending scenarios.

   Deterrent Effect: The implementation of FinaGuardAI acts as a strong deterrent against potential fraudsters. Knowing that such robust security measures are in place discourages many from attempting fraudulent activities.

Beyond Vehicle Loans: Expanding the Scope of FinaGuardAI

While the focus here is on vehicle loans, the applications of FinaGuardAI extend far beyond this specific sector. Any industry that relies on KYC verification can benefit from this technology. This includes:

• Personal Loans: Securing personal loans against identity theft.
• Credit Card Applications: Preventing fraudulent credit card accounts.
• Account Opening: Ensuring the identity of new account holders.
• Insurance Applications: Protecting against fraudulent insurance claims.

The Future of Financial Security:

FinaGuardAI represents a significant step forward in the fight against financial fraud. By leveraging the power of AI and biometric authentication, it offers a robust and scalable solution to protect both financial institutions and individuals from the devastating consequences of identity theft. As technology continues to evolve, we can expect even more sophisticated security measures to emerge. However, FinaGuardAI sets a new standard for KYC verification and paves the way for a more secure and trustworthy financial ecosystem. In a world where fraud is becoming increasingly sophisticated, solutions like FinaGuardAI are not just desirable – they are essential. By embracing such technologies, we can build a future where financial transactions are safer, more secure, and accessible to all

Don’t wait for fraud to impact your business. Take action today!

📞 Contact Finahub for a Demo
📧 Email us at [email protected]
📱 Call us at +91 9745108885

 

 

 

Enhancing Gold Loan Security with AI-Powered Authentication: How Banks Can Prevent Fraud with FinaGuardAI

Introduction: The Growing Risk of Fraud in Gold Loans

Gold loans are a critical financial service in India, helping millions of customers access quick funds using their gold as collateral. However, they also present a significant risk—fraudulent transactions facilitated by employees colluding with bad actors. Banks face challenges in verifying both the authenticity of customers and the integrity of employees handling high-value transactions.

A single fraud incident can lead to huge financial losses, regulatory scrutiny, and a dent in the bank’s reputation. This is where FinaGuardAI, an advanced AI-driven authentication solution, comes into play. By leveraging face recognition, eye blink detection, and hand gesture verification, banks can ensure secure gold loan issuance while minimizing fraud risks.

The Role of FinaGuardAI in Preventing Gold Loan Fraud

1. Employee Authentication – Eliminating Insider Fraud

One of the biggest threats in gold loan transactions is when bank employees themselves are involved in fraud. Cases have emerged where employees manipulate records to approve fraudulent loans or release pledged gold without proper verification.

✅ FinaGuardAI ensures that only authorized employees can issue or close a gold loan.

• Before issuing a loan, the system verifies the employee’s identity using face recognition and a liveness test (eye blink or hand gesture detection).
• This prevents unauthorized access and eliminates cases where employees exploit internal loopholes for personal gain.

• Banks get a tamper-proof digital record of every transaction, ensuring accountability. 

2. Customer Authentication – Preventing Identity Fraud

Fraudsters often impersonate genuine customers using fake IDs, or existing customers may attempt to retrieve pledged gold using false claims. Traditional authentication methods (such as OTPs or manual ID verification) are not foolproof.

✅ FinaGuardAI verifies customer identity before any transaction

• Uses AI-powered face recognition to match the customer’s face with their registered profile.
• Performs a liveness check to ensure they are a real person and not using a photo or video spoofing technique.
• Prevents fraudsters from withdrawing gold under false identities.

By automating customer verification, banks can speed up transactions, reduce human errors, and prevent unauthorized access to pledged gold.

How FinaGuardAI Enhances Security Without Adding Complexity

One of the biggest concerns for banks when implementing security solutions is operational complexity. Traditional biometric authentication systems can be expensive, slow, and difficult to integrate.

✅ FinaGuardAI is designed for seamless integration with existing banking applications

• No expensive hardware required—works with standard smartphone or laptop cameras.
• Quick and hassle-free authentication that does not disrupt customer experience.
• Ensures compliance with internal security policies while keeping all data securely within the bank’s data center.

The Business Impact: Why Banks Should Act Now

🔹 Reduced Financial Losses – Prevents fraudulent gold loan issuance and unauthorized withdrawals.
🔹 Improved Compliance & Audits – Digital records of every transaction provide traceability.
🔹 Enhanced Brand Trust – Customers feel more secure knowing that strict authentication is in place.
🔹 Cost-Effective Solution – AI-driven security without the need for expensive infrastructure upgrades.

Conclusion: Secure Your Bank’s Future with FinaGuardAI

Gold loan fraud is a growing concern, but with the right technology, banks can stay ahead of the threat. FinaGuardAI offers a foolproof, AI-powered authentication solution that safeguards both employee and customer transactions.

Don’t wait for fraud to impact your business. Take action today!

📞 Contact Finahub for a Demo
📧 Email us at [email protected]
📱 Call us at +91 9745108885

Let’s work together to build a secure and fraud-free banking ecosystem! 🚀

 

 

 

How Finahub enables Federal Bank to implement SmilePay ATMs

 

What Is SmilePay ATMs?

SmilePay is a groundbreaking application launched by the Federal Bank that redefines the payment landscape. It enables users to make payments simply by scanning their face, eliminating the need for physical payment instruments like cards or mobile phones. 

This means that all customers irrespective of whether they have debit card or not will be able to withdraw money from an ATM. SmilePay enables Federal Bank to extend ATM facilities to small value accounts such as Jandhan Accounts without having to bear the cost of issuing a Debt\ATM card.

How Does SmilePay Work?

SmilePay is built on top of Aadhaar Enabled Payment Service (AEPS) and Aadhaar Face Authentication Service. Federal Bank uses Finahub's FacePay Software Solution that provides BHIM AEPS Payment Switch that supports Aadhaar Face Authentication to enable payments using face authentication.

Federal Bank ATM's that supports Smilepay will have option in the menu to choose Pay with a smile. The customer will enter his/ her mobile number and the camera on the ATM scans the customer’s face, verifying their identity against stored facial data in the UIDAI system (Unique Identification Authority of India).
Once verified, the cash is dispensed from the ATM instantly, debiting the customer’s Aadhaar-seeded account.

SmilePay leverages the BHIM Aadhaar Pay platform powered by NPCI.

Benefits of SmilePay

Convenience: No need to carry physical cards or mobile phones to make a ATM withdrawal. The customer can just smile and withdraw money.

Security: Facial recognition is a biometric authentication method that ensures the physical presence of the account holder thereby eliminating frauds such as card cloning and OTP frauds.

Futuristic Experience: The whole transaction feels like something out of a sci-fi movie, but it’s real!

Implementation and Availability

Federal Bank Customers: SmilePay with ATM is available only for Federal Bank customers for now.

So, next time you’re at a Federal Bank ATM, don’t forget to flash your best smile—it might just be your key to a seamless cash withdrawal 

How Finahub helped Federal bank implement SmilePay?

Finahub's FacePay Software Solution enables Federal Bank to implement SmilePay and integrate the functionality with existing services. 

FacePay Software Solution consists of:

• BHIM AEPS Payment Switch
• Integrations with NPCI and UIDAI
• Certification with NPCI to enable BHIM AEPS  services
• Mobile SDK for integrated on Merchant App
• Support Kirana Store
• Supports Multi POS Stores
•  FacePay Console that supports
• MIS Reporting
• Transaction Logs
• Merchant Console
• Agent Administration
• Transaction Reports

For more information contact us.

We, Finahub, are experts in Aadhaar related products and services like online 

EKYC, Authentication, eSign, Aadhaar Data Vault etc. If you want to know how your enterprise can start using it, please give us a call  @ 0484 2388285 or email us at [email protected]

How Finahub made Smilepay possible for Federal Bank?

 

What Is SmilePay?

SmilePay is a groundbreaking application launched by the Federal Bank that redefines the payment landscape. It enables users to make payments simply by scanning their face, eliminating the need for physical payment instruments like cards or mobile phones. Imagine walking up to a counter, smiling, and completing a transaction—no cash, no cards, just your friendly face! 

How Does SmilePay Work?

SmilePay is built on top of Aadhaar Enabled Payment Service (AEPS) and Aadhaar Face Authentication Service. Federal Bank uses Finahub's FacePay Software Solution that provides BHIM AEPS Payment Switch that supports Aadhaar Face Authentication to enable payments using face authentication.

Federal Bank on boards merchants that can avail of SmilePay through the bank’s merchant app called FED MERCHANT that integrates the FacePay Merchant SDK. These merchants can initiate payment transaction by scanning the face of the customer.

The camera on the merchant’s mobile scans the customer’s face, verifying their identity against stored facial data in the UIDAI system (Unique Identification Authority of India).
Instant Payment: Once verified, the payment is processed instantly, debiting the customer’s Aadhaar-seeded account and crediting the merchant’s account maintained with Federal Bank.

SmilePay leverages the BHIM Aadhaar Pay platform powered by NPCI. Here’s how this integration works:

Biometric-Based Payments: SmilePay enables seamless, biometric-based payments between customers and merchants (P2M).

Merchant Authentication: Merchants must have their Aadhaar linked to their bank account and be certified for face authentication modality with NPCI.

Customer Requirements: Customers need a valid bank account seeded with Aadhaar and sufficient balance for successful transactions.

Benefits of SmilePay

Convenience: No need to carry physical cards or mobile phones to make a purchase and pay digitally. The buyer can just smile and pay!

Security: Facial recognition is a biometric authentication method that ensures the physical presence of the account holder thereby eliminating frauds such as card cloning and OTP frauds.

Futuristic Experience: The whole transaction feels like something out of a sci-fi movie, but it’s real!

Implementation and Availability

Federal Bank Customers: SmilePay is available for both Federal Bank customers and customers of other banks certified for face authentication modality with NPCI.
Input Parameters: Federal Bank customers can initiate transactions using their Mobile number/Aadhaar number/VID/ updated in their customer id with the bank. For other bank customers, the Aadhaar number/VID is the input parameter.

So, next time you’re at a Federal Bank merchant, don’t forget to flash your best smile—it might just be your key to a seamless payment experience! 

How Finahub helped Federal bank implement SmilePay?

Finahub's FacePay Software Solution enables Federal Bank to implement SmilePay and integrate the functionality with existing services. 

FacePay Software Solution consists of:

• BHIM AEPS Payment Switch
• Integrations with NPCI and UIDAI
• Certification with NPCI to enable BHIM AEPS  services
• Mobile SDK for integrated on Merchant App
• Support Kirana Store
• Supports Multi POS Stores
•  FacePay Console that supports
• MIS Reporting
• Transaction Logs
• Merchant Console
• Agent Administration
• Transaction Reports

For more information contact us.

We, Finahub, are experts in Aadhaar related products and services like online 

EKYC, Authentication, eSign, Aadhaar Data Vault etc. If you want to know how your enterprise can start using it, please give us a call  @ 0484 2388285 or email us at [email protected]

Securing Digital Identity: UIDAI’s Shift from L0 to L1 Fingerprint Devices

 

                              In the digital age, security is non-negotiable. The Unique Identification Authority of India (UIDAI) recognizes this and is leading the way in enhancing security protocols for Aadhaar-based  authentication transactions. With a steadfast commitment to end to-end encryption and stringent security measures, UIDAI is setting a new benchmark in biometric data protection.

The Need for Enhanced Security

                              UIDAI has recently mandated a transition from fingerprint Level 0 (L0) Registered Devices (RD) to the more secure fingerprint Level 1 (L1) RD. This upgrade represents a significant advancement in securing biometric data at its source, thereby preventing any potential misuse by third-party applications.

Understanding L0 vs. L1 Devices

                              The key difference between L0 and L1 devices lies in the processing of biometric data. In L0 devices, encryption and signing of biometric data occur on the host device after scanning. In contrast, L1 devices perform encryption and signing directly on the scanning device itself, ensuring that biometric data is secured before it even leaves the device.

Certification of L1 Devices

                                 The first batch of these robust L1 RD devices has been certified as of 30th October 2022, marking a significant step toward a more secure authentication ecosystem.

Transition Strategy

                                Currently, all fingerprint devices in the authentication ecosystem adhere to L0 standards. To ensure a smooth transition without disrupting existing systems, all deployed fingerprint L0 RD will be gradually phased out. By 30th June 2024, only fingerprint L1 RD will be authorized to perform Aadhaar-based authentications. This gives Authentication User Agencies (AUA) and KYC User Agencies (KUA) ample time to procure fingerprint L1 RD for their systems.

Continued Use of Iris Devices 

                               It’s important to note that iris devices, being relatively more secure, so all the Iris L0 RD will continue to function as present.

                              UIDAI’s move to fingerprint L1 RD devices is a clear indication of their dedication to enhancing digital security, and directions have already been issued to all AUA/KUAs to replace their old/deployed L0 RD with the new L1 RD.

For more information contact us.

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