UPI New Circular: Transactions with Certain IDs to Be Blocked from February 1 – NPCI Revises Rules

Major Change in UPI Transactions from February 1

The National Payments Corporation of India (NPCI) has introduced new regulations for UPI transactions, which will take effect from February 1, 2025. Transactions made using UPI IDs containing special characters will be blocked, as per the latest circular issued by NPCI.

UPI Transactions to Undergo a Major Shift

UPI has emerged as a key payment method across multiple countries, including India. With its widespread adoption, the government has continuously enhanced digital payment services for consumers. Now, NPCI has implemented a significant change aimed at refining UPI transactions and ensuring compliance with updated security guidelines.

What Will Change?

According to the new rules, only UPI IDs consisting of alphanumeric characters will be permitted for transactions. This means:

• Users can create IDs using A-Z (uppercase), a-z (lowercase), and 0-9 (numbers).

• UPI IDs containing special characters such as @, #, %, and $ will no longer be valid for transactions.

• Non-compliant IDs may be blocked from performing financial transactions.

Why Has NPCI Taken This Step?

The decision to restrict UPI IDs to alphanumeric characters is part of NPCI’s effort to streamline transactions and enhance security. Banks have already received clear instructions to comply with this regulation. Although NPCI had previously directed banks and payment apps to follow similar guidelines, some institutions failed to adhere to them. As a result, NPCI has now implemented a stricter policy to ensure compliance.

Key Takeaways for Users

• Effective Date: February 1, 2025

• Affected Users: Those with special characters in their UPI IDs

• Action Required: Update UPI IDs to use only letters and numbers

Users are advised to check their UPI IDs and make necessary updates before the deadline to avoid transaction failures. Banks and payment apps are also expected to enforce these rules strictly to maintain a seamless digital payment experience.