If you make payment through UPI, then there is a big relief news for you. Now digital transactions are going to be even more secure and transparent. Actually, a new UPI rule is going to be implemented from 2025, in which the bank-verified real name of the person to whom you are sending money will be visible before making the payment.
Till now, during UPI transactions, many times only the nickname, name taken from QR code or name saved in phone contact was visible. In such a situation, the possibility of fraud increased, because the fraudsters used to confuse the users by imitating the real name.
What is the new rule?
The National Payments Corporation of India (NPCI) has issued instructions on 24 April 2025 that from 30 June 2025, it will be mandatory for UPI apps to show the name verified by the bank as per Core Banking System (CBS) before confirming the transaction.
This rule will apply to both types of transactions –
P2P (Person to Person)
P2PM (Person to Merchant).
Why was this change necessary?
The name that appeared in UPI transactions till now could be taken from the QR code, or a nickname saved by the user. This often led to incidents of fraud with mistaken identity and fake names.
Now, the same name will appear on the payment screen which is verified in the bank’s records, which will reduce the chances of fraud.
What is “Ultimate Beneficiary”?
The ultimate beneficiary is called the person or institution who is actually receiving the payment. The bank’s CBS system determines this and this data is passed to the apps through secure APIs. Neither the user nor the app can change this name. This will allow the person sending the payment to see the exact identity.
Will the method of making payment change?
No. You will be able to make payments through UPI ID, Mobile number, QR code as before.
The only difference will be that now the name shown while confirming the payment will be real and verified, not a nickname or saved contact name.
What will be the benefit to the users?
Control over fraud: The tricks of fraudsters using fake names will no longer work.
Trust will increase: Users will be able to identify the beneficiary by seeing the real name.
Wrong transfers will be reduced: Accurate identification will reduce the chances of sending money to the wrong account.
According to Rahul Jain of NTT DATA Payment Services – “Earlier scammers used to cheat by using brand names, now this will not be possible.”