If you depend on UPI transactions for daily expenses, here are some important details you need to know. The National Payments Corporation of India (NPCI) has announced new guidelines, which come into effect on April 1, 2025. These guidelines are to secure and streamline UPI services to work efficiently for millions of users across India.
What Changes?
Starting April 2025, banks and payment service providers will be expected to do regular database housekeeping and roll out the mobile numbers which are either deactivated or reallocated to new users. This being the case, wrongful transactions and wrong doings must be kept to a minimum; hence, the focus on safety and reliability of UPI transactions.
Why Introduce These Rules?
As per the meeting on July 16, 2024, the NPCI wanted to address the prevalence of wrong UPI transactions. By instating these guidelines, banks and UPI apps will have a renewed obligation to weekly update the mobile number database and thus cut transactional failure chances to a bare minimum and keep payments reaching their intended recipients without a hitch.
What Action Should Users Take that Use UPI Apps?
Consider the following as important to keep in mind as a UPI user:
- Consent for Update: UPI apps will henceforth seek your specific consent to update your mobile number. Within the app, you will find a simple alternative for opting in, ensuring transparency and control over how your data is handled.
- Stay Updated: In case you do not update your mobile number, you stand the risk of losing the opportunity of receiving money via UPI. Do ensure your details are always updated to avoid disruption.
- No Misleading Messages: NPCI has declared that UPI apps may not use coercive or misleading consent requests. Your privacy and choice will continue to be respected without question.
New Guidelines for Banks and UPI Apps
By March 31, 2025, all banks and UPI service providers must comply with these new rules. From April 1, 2025, they will also be required to submit monthly reports to the NPCI, detailing:
- Total number of UPI IDs linked to mobile numbers
- Active UPI users for the month
- Transactions occurring through mobile numbers changed
- Transactions localized based on mobile numbers changed.