With the rise of internet and smartphone usage, digital payments have become increasingly popular in India. Today, many people rely on UPI (Unified Payments Interface) for their daily transactions. UPI allows users to transfer large sums of money from one account to another in just a few seconds. However, one common issue with UPI is the accidental transfer of money to the wrong account. If you’ve ever faced this problem, worry no more, as a solution is now on the way.
To address the issue of mistakenly transferring money to the wrong account, NPCI (National Payments Corporation of India) has introduced a significant update. This new rule will help ensure that your hard-earned money remains safe. Let’s take a look at this new feature.
NPCI’s New Rule:
The NPCI has taken a major step to resolve the concerns of millions of UPI users. With this new feature, you will no longer have to worry about your money being transferred to the wrong account by mistake. According to the new rule, whenever someone makes a payment through UPI, the sender’s account name will appear exactly as it is listed in their bank’s core banking system.
To put it simply, you will no longer be able to send money based on the name saved in your phone’s contact list. Instead, you will see the actual name of the account holder as per their bank records before making the transfer. This feature will ensure that you verify the recipient’s identity before sending any money.
When Will the New Rule Be Implemented?
The new NPCI rule will be applicable to P2P (Peer to Peer) and P2PM (Peer to Peer Merchant) transactions. The primary goal of this update is to provide UPI users with accurate account holder information to keep their funds safe and eliminate confusion. Now, if you accidentally select the wrong name from your contact list during an online payment, you will be alerted before the payment is processed.
This new rule will come into effect across the country from June 30, 2025. It will benefit millions of users on platforms like Google Pay, PhonePe, Paytm, and BHIM, as all these platforms will need to update their systems to comply with the new NPCI guidelines.
