A significant change is on the way if you regularly conduct transactions using UPI. New rules issued by the National Payments Corporation of India (NPCI) will go into force on April 1, 2025. To improve security and lower transaction mistakes, these new regulations require banks to routinely delete the mobile phones that have been deactivated or reassigned.
Reason for Implementing These New Rules
NPCI determined during a meeting on July 16, 2024, that banks and PSPs need to upgrade their systems regularly. To reduce the amount of unsuccessful or inaccurate transactions, banks and UPI applications will now update their databases of mobile numbers once a week.
What UPI Users Should Be Aware Of
- Before changing your registered mobile number, UPI applications will need your permission.
- The app will provide a clear opt-in choice, guaranteeing that the updating procedure is transparent.
- No forceful or fraudulent consent messages will be used.
- If you don’t change your cellphone number, you might not be able to receive UPI payments.
New Rules for UPI Apps and Banks
By March 31, 2025, all banks and UPI service providers must abide by these regulations. They will also be expected to provide NPCI with a monthly report beginning April 1, 2025, that includes the following information:
- Total number of mobile numbers associated with UPI IDs.
- Monthly total of active UPI users.
- Updated cellphone numbers were used for transactions.
- UPI transactions were settled by modifications to mobile numbers.
Impact of These Changes
This upgrade would greatly reduce the number of erroneous transactions, increasing the security and effectiveness of UPI payments. Weekly mobile number updates will be carried out by banks and UPI applications, reducing the likelihood of unsuccessful transactions. To prevent any possible problems, keep yourself updated via your bank or UPI service provider if you depend on UPI for transactions.
