Banking System Update: New Rules for Banks Effective from April 1, NPCI Issues Guidelines

UPI Transactions: Important Update for Daily Users

If you frequently use UPI for transactions, a crucial update is coming your way. The National Payments Corporation of India (NPCI) has introduced new regulations set to take effect from April 1, 2025. Under these new rules, banks must regularly remove mobile numbers that have been deactivated or reassigned, enhancing security and reducing transaction errors.

Reason for Implementing These New Rules

In a meeting held on July 16, 2024, NPCI decided that banks and payment service providers (PSPs) must frequently update their systems. Banks and UPI apps will now refresh their mobile number databases on a weekly basis to minimize incorrect or failed transactions.

What UPI Users Should Be Aware Of

• UPI apps will require your consent before updating your registered mobile number.

• You will see a clear opt-in option in the app, ensuring transparency in the update process.

• There will be no misleading or forced consent messages.

• Failure to update your mobile number may lead to restrictions on receiving payments through UPI.

New Guidelines for Banks and UPI Apps

All banks and UPI service providers must comply with these rules by March 31, 2025. Starting April 1, 2025, they will also be required to submit a monthly report to NPCI containing the following details:

• Total UPI IDs linked to mobile numbers.

• Number of active UPI users each month.

• Transactions conducted using updated mobile numbers.

• Resolved UPI transactions based on mobile number updates.

Impact of These Changes

With this update, incorrect transactions will significantly decrease, making UPI payments more secure and efficient. Banks and UPI apps will conduct weekly mobile number updates, minimizing the chances of failed transactions. If you rely on UPI for transactions, stay informed through your bank or UPI service provider to avoid any potential issues.