UPI Update:
Major Changes Coming from April 1, 2025 – Everything You Need to Know
The National Payments Corporation of India (NPCI) has introduced significant changes to Unified Payments Interface (UPI) transactions, set to take effect from April 1, 2025. These updates are designed to enhance security, reduce transaction errors, and improve the overall user experience by addressing issues related to churned (disconnected or surrendered) mobile numbers linked to UPI IDs.
Regular
Database Updates to Prevent Errors
To reduce transaction failures and
misdirected payments, banks and payment service providers
(PSPs) must
update their databases at least once a week to remove disconnected
or recycled mobile numbers.
This will ensure that old numbers are not mistakenly linked to previous users,
preventing payment errors and improving the reliability of UPI transactions.
Improved
User Communication and Consent Rules
NPCI has mandated that UPI apps must
provide clear, non-intrusive communication without misleading or forceful
messaging. Additionally, no forced user consent will be required before or during
transactions, ensuring a transparent and hassle-free payment
process. Users
will also not lose access to their UPI payments due to seeding or porting
issues, ensuring seamless transactions without unnecessary disruptions.
Better
Handling of UPI Mapper Response Time
In case the NPCI
UPI mapper does
not respond quickly enough, PSPs will be allowed to resolve transactions
locally. However, they must report such instances to NPCI on
a monthly basis,
ensuring transparency and accountability in the UPI ecosystem.
New
Monthly Reporting Requirements for Banks and PSPs
Starting from April
1, 2025, banks
and PSPs must submit detailed reports to NPCI, including:
- Total UPI
seeding count
(newly registered UPI numbers)
- Number of
active unique users
on the UPI mapper each month
- Total CMID
transactions count
(customer-merchant transactions)
- Total UPI
number-based transactions resolved locally
Deadline
for Compliance
All banks, PSPs, and UPI service
providers must comply with these new rules by March 31, 2025. After this deadline, strict
monitoring will ensure adherence to the updated framework.
These changes mark a major step in enhancing
UPI security, reducing transaction failures, and making digital payments more
seamless for
users across India. With these improvements, NPCI aims to strengthen the trust,
efficiency, and reliability of the UPI payment system.
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