The National Payments Corporation of India (NPCI) has announced new guidelines for Unified Payments Interface (UPI) transactions, set to take effect from April 1, 2025. These changes focus on enhancing security, preventing fraud, and improving transaction efficiency. Here’s what users need to be aware of:
MOBILE NUMBER VERIFICATION
To prevent errors caused by recycled numbers, banks and UPI apps must regularly update their records. Users must ensure their registered mobile number remains active and in use to avoid disruptions in transactions.
DEACTIVATION OF INACTIVE UPI IDs
UPI IDs linked to inactive mobile numbers will be deactivated. If a mobile number is reassigned to a new user, the previous UPI-linked accounts will automatically be unlinked, requiring users to update their details with their banks.
USER CONSENT FOR NUMERIC UPI IDs
Users will no longer be automatically assigned numeric UPI IDs. Instead, they must opt-in manually, adding an extra layer of security and transparency to the system.
STRONGER FRAUD PREVENTION MEASURES
Banks will implement the Mobile Number Revocation List (MNRL) to identify and remove inactive or reassigned numbers. This reduces the risk of unauthorized access to UPI-linked accounts.
FASTER DISPUTE RESOLUTION
The new rules aim to speed up chargeback and dispute resolution processes, making it easier for users to resolve failed or unauthorized transactions.
IMPACT ON MERCHANTS
While there are no new charges for individual users, merchants processing transactions over ₹2,000 via digital wallets may face an interchange fee of up to 1.1%.
These updates are designed to make UPI transactions more secure and efficient. Users should ensure their mobile numbers are up to date to avoid any service disruptions.
