New UPI Rules: The National Payments Corporation of India (NPCI) has issued new guidelines to enhance the security of UPI transactions, which will come into effect from April 1, 2025. Under these rules, banks will have to regularly delete mobile numbers that have been closed or re-allocated to new users. This will help prevent mistakes in UPI transactions. This rule is an important step towards making digital payments more secure.
Data will be updated every week
NPCI decided in an important meeting held on July 16, 2024, that banks and payment service providers must update their systems regularly. Banks and UPI apps will have to refresh the list of mobile numbers closed or allocated to new users every week. This process will reduce the chances of transactions on wrong numbers and increase security. This step will prove to help protect users from fraud.
The most important thing for UPI users
It will be very important for UPI users to update their registered mobile numbers. UPI apps will now seek explicit consent from users for number updates. The apps will have an opt-in option, so there will be no forced consent process. If a user does not update their mobile number, they may lose the facility to receive money through UPI. It is important to ensure that you keep your mobile number updated.
New guidelines for banks and payment service providers
NPCI has given banks and UPI service providers time till March 31, 2025, to implement these guidelines. From April 1, 2025, all banks will have to submit monthly reports to NPCI. This report will include details of total UPI IDs, active users, transactions done through updated mobile numbers and locally resolved number-based transactions. This reporting system will promote transparency and security.
Impact of new changes on transactions
These changes will make UPI transactions more secure and effective. The problem of sending money to the wrong number will be reduced. Weekly updates of mobile numbers by banks and UPI apps will reduce the incidence of fraud and failed transactions. UPI users will get more security and ease in transactions. This change will make digital payments more reliable.
What users should do
Keeping in mind this new rule of NPCI, UPI users should keep their information updated in their bank and UPI apps. Check your registered mobile number from time to time. If you have recently changed your number, update it immediately in your bank and UPI app. Do not ignore any updates or notifications coming from UPI apps. It is important to be alert and stay updated.
Objective of NPCI
The main objective of NPCI is to make UPI transactions more secure and provide a seamless and secure payment experience to users. This change will improve the digital payment system and people will get a more secure banking experience. This is an important step that will secure the future of digital payments.