UPI has become an integral part of daily life, enabling instant payments. To enhance security and prevent unauthorized transactions, the National Payments Corporation of India (NPCI) has introduced important changes that will take effect on April 1, 2025. The NPCI has directed banks to remove deactivated or reassigned mobile numbers from UPI systems starting April 1, 2025. This move aims to strengthen transaction security and prevent unauthorized access.
To minimize incorrect UPI transactions, banks and UPI payment service providers have been instructed to update their systems at regular intervals. This decision was taken during an NPCI meeting held on July 16, 2024, and will be implemented from April 1, 2025.
New Process for Mobile Number Updates
To prevent failed or incorrect transactions, an updated list of mobile numbers will be prepared every week by banks and UPI payment service providers. Users must provide consent before their mobile numbers are updated. This consent can be given directly through the UPI app. If a user does not provide consent and fails to update their mobile number, UPI transactions linked to that number will be restricted.
From April 1, 2025, banks and UPI apps will be required to submit a monthly report to NPCI. This report must include:
- The number of UPI IDs linked to mobile numbers.
- The number of active users.
- The total number of UPI-based transactions.
All banks and UPI service providers must comply with these new rules to ensure secure and seamless digital transactions.