Is biometric authentication mandated by any banking legislation?

RBI Directions

• Mandates Aadhaar-based KYC.
  
• Allows biometric verification.
  
• Promotes use for security.
  
• Encourages two-factor authentication.
  
• Required for certain digital services.
  

Information Technology Act, 2000

• Recognizes digital authentication.
  
• Provides legal status to biometrics.
  
• Enforces cybersecurity safeguards.
  
• Penalizes misuse of data.
  
• Ensures secure electronic records.
  

UIDAI Regulations

• Governs Aadhaar-based verification.
  
• Mandates secure use of biometrics.
  
• Restricts unauthorized storage.
  
• Provides grievance mechanisms.
  
• Ensures identity protection.
  

Consumer Protection

• Protects customer interests.
  
• Prevents unauthorized access.
  
• Promotes fraud prevention.
  
• Ensures safer transactions.
  
• Strengthens digital trust.
  

Not Universally Mandatory

• Encouraged, not compulsory in all.
  
• Used in selective services.
  
• Depends on bank discretion.
  
• Integrated with e-KYC systems.
  
• Supported by policy, not strict law.