Personal Identification Number
Also called: PIN · Topic: Payment Systems and Digital Finance · NCERT: Class 7, Ch 8 "Banks and the Magic of Finance"
Meaning
A Personal Identification Number (PIN) is a secret number code, usually 4 to 6 digits long. It proves that you are the real owner when you use an ATM, a card or other financial services. It is something you know. It works together with something you have, such as the card or your phone. Even if someone steals your card, they cannot use it without the PIN.
UPI has its own UPI PIN, which you enter to approve each UPI payment. You should never share a PIN or store it on your device.
Example
At an ATM, Priya inserts her debit card and types her 4-digit PIN before entering the amount. Without the correct PIN, the machine will not give her any cash.
Don't confuse with
- One-Time Password (OTP): a PIN is fixed and set by you. You use it again and again until you change it. An OTP is a temporary code sent to your phone for a single transaction.
Related concepts
- Automated Teller Machine
- National Financial Switch
- Debit card
- Credit card
- Plastic money
- Point of Sale
- Card tokenisation