The National Payments Corporation of India (NPCI) is about to implement new guidelines for Unified Payments Interface (UPI) transactions from 1st April, 2025, to enhance security, interoperability and overall customer experience. These are requirements for all member banks of UPI, Payment Service Providers (PSPs) and third-party app providers, such as leading apps like PhonePe, Google Pay and Paytm. The new framework attempts to resolve issues related to unused or reassigned mobile numbers and improve user trust and operating efficiency.
One of the most important updates is the handling of mobile numbers assigned to UPI IDs. According to the Department of Telecommunications (DoT), mobile numbers that have remained unused for 90 days can be reassigned to new customers. To counter this, NPCI has made it obligatory for banks and PSPs to update mobile number records weekly through the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP). This will help to minimise transaction errors due to expired or reused mobile numbers. From 1st April, UPI IDs associated with dormant mobile numbers will be deactivated, making it necessary for users to ensure their registered mobile numbers with banks are active and up-to-date.
The guidelines also introduce stricter consent mechanisms for UPI number seeding. Users must explicitly opt-in for this process, ensuring transparency and data integrity. Consent should not be sought during or before transactions, highlighting the role of user preferences in the digital payment system.
NPCI is also removing the “Collect Payments” feature from UPI because of fraud issues. This feature will now be limited to large, authenticated merchants only, and person-to-person collect payments will be limited to Rs 2,000. PSP apps also need to report cases where they locally settle UPI numbers because of NPCI’s system delay every month. This reporting provides transparency and accountability in UPI operations.
The effective key changes include regular weekly updating of mobile number records through MNRL/DIP, deactivating UPI IDs associated with inactive or reused mobile numbers, mandatory opt-in for UPI number seeding; consent can’t be captured at the time of transactions, limitation of ‘collect payments’ facility to verified merchants; person-to-person collect payments limited to Rs 2,000 and obligatory monthly reporting by PSPs for locally settled UPI numbers because of system lag.
These changes will affect users who have ported their mobile numbers but not revised their bank accounts, those keeping cancelled or recycled numbers that are still mapping to UPI IDs, and those who have handed over SIM cards without revising their bank records. To prevent interruptions in UPI services post 31st March, users need to ensure that their bank records contain active mobile numbers.
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