New UPI Guidelines Coming into Effect from April 1, 2025

Synopsis: Starting April 1, 2025, NPCI will implement new regulations for UPI transactions, requiring banks and PSPs to update mobile number records weekly and obtain explicit user consent for seeding numeric UPI IDs. The objective is to enhance transaction security, reduce errors, and ensure seamless digital payments. All UPI ecosystem members must comply with these guidelines by March 31, 2025, with mandatory monthly reporting to NPCI to maintain transparency and accountability.

The National Payments Corporation of India (NPCI) is set to introduce new regulatory measures for Unified Payments Interface (UPI) transactions starting April 1, 2025. These changes will impact banks, Payment Service Providers (PSPs), and third-party UPI service providers such as PhonePe, Google Pay, and Paytm. The revised framework aims to improve transaction accuracy, security, and user experience by addressing concerns related to mobile number changes and numeric UPI IDs.

One of the major updates requires banks and PSPs to verify mobile numbers on a weekly basis using the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP). This initiative is designed to reduce errors caused by recycled mobile numbers, ensuring that transactions are processed without unnecessary disruptions. Additionally, users will now have to give explicit consent before their numeric UPI IDs are linked to their accounts. This consent process cannot take place during or before a transaction, thereby safeguarding user autonomy and data integrity.

All entities within the UPI ecosystem, including banks, PSPs, and third-party service providers, must implement these changes by March 31, 2025. From April 1, 2025, compliance reports must be submitted to NPCI on a monthly basis to ensure transparency and accountability in the system. Moreover, the new guidelines permit PSP apps to resolve numeric UPI IDs locally in cases where NPCI's central system experiences response delays, further enhancing the efficiency of digital transactions.

For UPI users, these changes mean they must ensure their registered mobile numbers are up to date to avoid transaction failures. Meanwhile, service providers will need to make necessary technical adjustments to comply with the new guidelines, ensuring seamless operations while maintaining their competitive standing in the digital payments space.

As UPI continues to play a critical role in India’s digital economy, these regulatory enhancements are expected to streamline operations, minimize errors, and reinforce user confidence. By focusing on consent-driven data management and real-time mobile number verification, NPCI aims to strengthen the security and reliability of UPI transactions across the country.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Readers should consult their banks or payment service providers for specific details on how these changes may affect them.