UPI transactions have become an integral part of daily payments, allowing seamless transactions within seconds. If you frequently use UPI services, there is an important update for you. The National Payments Corporation of India (NPCI) has announced new rules that will come into effect from April 1, 2025.
Banks to Remove Inactive Mobile Numbers
Starting April 1, 2025, banks have been directed to remove mobile numbers that are either reassigned to new users or have been deactivated. This initiative aims to enhance UPI security and prevent transactions from being mistakenly processed to incorrect accounts.
Mandatory System Updates to Prevent Errors
To minimize errors and prevent unauthorized UPI transactions, NPCI has mandated that banks and UPI payment service providers regularly update their systems. This decision was made during an NPCI meeting on July 16, 2024, and its implementation will begin on April 1, 2025.
Banks and UPI service providers will now generate and update a list of mobile numbers every week to prevent transaction failures or misdirected payments.
User Consent Required for Mobile Number Updates
Users must approve any updates to their mobile numbers through their UPI apps. The option to provide consent will be available within the app interface. If a user does not grant permission for an update, they will not be able to carry out UPI transactions using that number.
Compliance for Banks and UPI Apps
From April 1, 2025, banks and UPI service providers must submit monthly reports to NPCI. These reports must include details such as the number of UPI IDs linked to mobile numbers, active users, and the total volume of UPI transactions processed.
Enhanced Security for UPI Users
These changes are being implemented to strengthen UPI security and provide a safer transaction experience for users. If you want to continue using UPI services without disruptions, ensure that your mobile number is up to date and all required updates are completed on time.
