NPCI Announces New UPI Security Guidelines Effective from April 1, 2025
NPCI Announces New UPI Security Guidelines Effective from April 1, 2025
March 28, 2025 – The National Payments Corporation of India (NPCI) has issued new directives aimed at enhancing the security and efficiency of Unified Payments Interface (UPI) transactions. The new rules will take effect from April 1, 2025, and will require banks, Payment Service Providers (PSPs), and third-party UPI apps like PhonePe, Google Pay (GPay), and Paytm to implement stricter security measures regarding numeric UPI IDs.
Regular Updates to Prevent Errors
According to NPCI’s directive, banks and PSP apps must regularly update their database using the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP) at least once a week. This step is intended to prevent transaction errors that occur due to outdated or reassigned mobile numbers.
Mobile Numbers and UPI Deactivation
The new UPI rules align with the Department of Telecommunications (DoT) guidelines, which state that a disconnected mobile number can be reassigned to a new user after 90 days of inactivity. Typically, if a user does not make calls, send texts, or use mobile data for three months, their number gets deactivated by the telecom provider and can be reassigned to another person.
Following the same principle, UPI IDs linked to inactive mobile numbers will be deactivated. Users must ensure that their mobile numbers registered with banks remain active and in use to avoid disruptions in UPI transactions.
Restrictions on ‘Collect Payments’ Feature
In addition to these changes, NPCI is also making modifications to the “Collect Payments” feature on UPI to combat fraudulent transactions. According to a report by The Economic Times, this feature will now be limited to large, verified merchants. Meanwhile, person-to-person collect payments will be capped at ₹2,000 to reduce the risk of fraud.
With these new measures, NPCI aims to enhance transaction security and streamline UPI payments while minimizing fraud risks.
