NEW DELHI: India is moving to position its QR (Quick Response) code-based payment system on the global stage. The Bureau of Indian Standards (BIS) has introduced fresh norms covering biometric authentication, QR code-based payments and digital currency security to reduce fraud risks and enhance interoperability according to two people aware of the development.
The move is intended to strengthen safeguards in India’s rapidly expanding digital financial ecosystem and build confidence among developed economies, where QR code payments are still a novelty, the people said.
The rapid expansion of digital payments, biometric-based authentication systems and QR code transactions in India has raised concerns over fraud, identity theft, data misuse and vulnerabilities in the digital payment infrastructure. With over 218 billion digital payment transactions in April-February of FY26 through QR code scans and biometric authentication, regulators are seeking a structured security framework to guide banks, fintech companies and payment service providers.
India’s QR code-based payment system is already operational in Singapore, the UAE, France, Nepal, Bhutan, Sri Lanka and Mauritius, and is expected to be launched in Japan shortly. Finance ministry data showed digital payments totalling ₹284.7 trillion in value were made in April-February.
According to a BIS order reviewed by Mint, one of the newly notified standards establishes a security framework for the use of biometrics in financial services.
“The standard lays down requirements for secure biometric authentication systems, including protection of biometric data, safeguards against spoofing or identity manipulation, secure storage and transmission of biometric information, and protocols to ensure the integrity and reliability of authentication systems used by financial institutions,” one official said.
Another BIS standard focuses on security for code-scanning payment systems. Given the widespread use of QR code-based payments in India’s retail and small merchant ecosystem, the standard provides guidance on secure QR code generation, encryption practices, verification mechanisms and safeguards to prevent risks such as fake QR codes, and unauthorized transaction processing.
Digital currency security
BIS has also notified new standards to deal with security aspects related to digital currencies. The standard outlines security considerations for digital currency infrastructure, including cryptographic safeguards, transaction validation processes, system resilience against cyber threats and risk management mechanisms for digital currency platforms.
India’s pilot central bank digital currency project has recorded over 120 million transactions, with their cumulative value crossing ₹280 billion, according to Reserve Bank of India data.
“The ministry of consumer affairs, which is the issuing authority, believes that once these new standards are adopted by financial institutions, UPI (unified payment interface) payments will become more secure and help check fraud. The standards will also make the Indian system globally acceptable,” the second person said, asking not to be identified.
Queries emailed to the spokespersons of BIS on 3 April and to the National Payments Corporation of India, which operates UPI, and the home ministry on 8 April remained unanswered till press time.
Experts said the introduction of quality standards for QR-based payments will strengthen system security and reduce fraud risks.
“These standards have been introduced for the first time to bring a structured and uniform security framework to , and this was much needed, given the scale at which such transactions are growing,” said Amit Singh, associate professor at the Special Centre for National Security Studies at Jawaharlal Nehru University. “They will not only reduce vulnerabilities and curb fraud risks, but also enhance trust and interoperability, which are critical for wider global acceptance of India’s digital payment ecosystem.”