UPI Transactions with Special Characters to Be Rejected from February 1: NPCI
GST on UPI Payments Above ₹2,000? Here's the Truth
Starting February 1, 2025, certain UPI transactions will be automatically rejected if they contain special characters in their transaction IDs, as per a directive issued by the National Payments Corporation of India (NPCI).
UPI Transactions Must Follow Alphanumeric Standards
In a circular dated January 9, NPCI instructed all UPI ecosystem participants to ensure that transaction IDs contain only alphanumeric characters, aligning with UPI’s technical standards. The directive comes after it was observed that some entities were not fully compliant with this requirement.
To enforce compliance, NPCI has decided that any UPI transaction ID containing special characters will be rejected by the central system. All UPI participants have been urged to strictly adhere to this rule to prevent transaction failures.
UPI Transactions Witness Record Growth
UPI payments have witnessed remarkable growth in recent years. In December 2024, UPI transactions reached an all-time high of 16.73 billion, reflecting an 8% increase from November’s 15.48 billion transactions. In terms of value, transactions totaled ₹23.25 lakh crore in December, up from ₹21.55 lakh crore in the previous month.
NPCI Addresses ‘Jumped Deposit’ Fraud Concerns
Amid reports of a new type of fraud called the ‘Jumped Deposit Scam’, NPCI has clarified that no such incidents have been recorded on the UPI platform. The scam allegedly involves fraudsters making small deposits into users’ accounts and later tricking them into authorizing larger payment requests.
NPCI reassured users, stating, “We have observed inaccuracies and technical discrepancies in recent media reports about the ‘Jumped Deposit’ scam, which have caused unnecessary panic.” They emphasized that UPI transactions require users to explicitly authorize payments by entering their UPI PIN, ensuring that no transaction can occur automatically.
With UPI continuing to dominate digital payments in India, users and businesses must stay informed about regulatory changes to avoid transaction disruptions.
