The National Payments Corporation of India (NPCI) is set to implement a new regulatory framework for Unified Payments Interface (UPI) transactions starting from 1st April, 2025. These changes are designed to boost security, improve interoperability and enhance customer experience across India’s fast-growing digital payments ecosystem.
Under the new guidelines, all UPI member banks, Payment Service Providers (PSPs) and third-party app providers (TPAPs)—including major platforms like PhonePe, Google Pay and Paytm—must comply with updated protocols.
A key focus area is the management of mobile numbers linked to UPI IDs. The Department of Telecommunications (DoT) allows for the reassignment of inactive mobile numbers after 90 days. To prevent misuse of recycled numbers, NPCI will mandate weekly updates of mobile records through the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP). From 1st April, UPI IDs tied to inactive numbers will be automatically deactivated, urging users to keep their registered mobile numbers active and updated with their banks.
Another important update involves stricter consent requirements for UPI number seeding. Users must explicitly opt-in and consent cannot be collected during or before a transaction, increasing transparency and reducing unauthorised account linking.
Due to rising fraud, the popular ‘Collect Payments’ feature for peer-to-peer transactions will be discontinued. It will remain available only for verified merchants, while individual collect requests will be limited to Rs 2,000. PSPs will also be required to submit monthly reports on local settlements of UPI numbers caused by system delays at NPCI’s end.
These new rules are especially crucial for users who have:
- Changed their mobile number without updating bank records
- Retained UPI IDs linked to cancelled or reassigned numbers
- Transferred SIM cards without revising linked banking details
To avoid disruptions in UPI services post 31st March 2025, users are advised to verify and update their mobile numbers with their respective banks. The move reflects NPCI’s ongoing efforts to foster trust, accountability and safety in India’s evolving digital payment landscape.
