UPI Multi-Signature Feature: How It Works and Key Benefits You Should Know

The Reserve Bank of India (RBI) and the Department of Financial Services (DFS) recently announced new digital payment features for UPI users at the Global FinTech Fest 2025. These include UPI multi-signature for joint account approval, on-device biometric verification, Aadhaar-based face verification for UPI PIN setup, and cash withdrawals through micro ATMs at UPI Cash Points. Among these, the UPI multi-signature feature is considered very important.

What is the UPI Multi-Signature Feature?

According to the RBI, the UPI Multi-Signature feature allows payments from joint accounts to be made easily, needing approval from one or more signatories. Signatories can use any UPI app to manage the connected bank account, making transactions faster and simpler.

The NPCI (National Payments Corporation of India) says this feature works with all UPI and bank apps. Using a “maker-checker” system, multiple people can manage one account for UPI payments. It is useful for jointly managed accounts, such as partnership firms, trusts, or small and medium-sized enterprises (SMEs), where multiple approvals are needed for a transaction.

NPCI enables UPI transactions via biometric authentication.

This will allow UPI users to authenticate their transactions using face or fingerprint, instead of the six-digit PIN they use at present.

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How the Feature Works

• Initiator (“Maker”) – A nominated user starts a transaction by entering payment details in their UPI app.
• Approval Request – The bank sends a request to other signatories (“Checkers”) based on rules for the account.
• Signatories (“Checkers”) – Each signatory approves the transaction using their UPI app. All approvals are needed to complete the transaction.
• Processing – After all approvals, the transaction goes through the UPI switch and funds are debited from the account.
• Interoperability – Initiators and signatories can use different UPI apps for their roles.

Key Security Measures

1. Two-factor authentication is needed for starting and approving transactions.
2. The system links a user’s UPI account securely to their mobile device.
3. All users get notifications for key actions like onboarding, initiation, and approval.
4. Banks can use NPCI APIs to unregister a user if needed.