UPI transactions have become a common mode of payment, allowing instant fund transfers within seconds. If you use UPI services, here’s an important update for you. Starting from the new financial year, i.e., 1 April 2025, the National Payments Corporation of India (NPCI) will implement new regulations.
Banks to Remove Certain Mobile Numbers
The NPCI has directed banks to remove mobile numbers that have been reassigned to someone else or are no longer in use, starting 1 April 2025. This measure aims to enhance security in UPI transactions and prevent fraudulent transfers.
System Updates Will Be Mandatory
To minimize incorrect UPI transactions, NPCI has instructed banks and UPI payment service providers to update their systems regularly. This decision was taken during an NPCI meeting on 16 July 2024, and will be enforced from 1 April 2025.
To prevent failed or incorrect transactions, banks and UPI service providers will be required to maintain an updated list of mobile numbers every week.
User Approval Required for Mobile Number Updates
Mobile number updates will only take place with the user’s consent. Users will have the option to approve these updates through their UPI apps. If they do not provide consent, their mobile number will not be updated, and they will not be able to conduct any UPI transactions using that number.
Also Read- UPI Transaction Limit Increased: Check Updated UPI and UPI Lite Limits for Various Payment Types
Compliance for Banks and UPI Apps
From 1 April 2025, banks and UPI apps will be required to submit monthly reports to NPCI. These reports must include details on the number of UPI IDs linked to mobile numbers, the count of active users, and the volume of UPI-based transactions.
UPI Transactions to Become Safer
These changes are being implemented to make UPI transactions more secure for users. To continue using UPI services seamlessly, ensure your mobile number and UPI apps are regularly updated.