The National Payments Corporation of India (NPCI) is set to introduce new guidelines for Unified Payments Interface (UPI) transactions starting April 1, 2025. These updates aim to enhance security, improve interoperability, and refine the overall customer experience. The new framework will be mandatory for all UPI member banks, Payment Service Providers (PSPs), and third-party app providers (TPAPs) such as PhonePe, Google Pay, and Paytm.

One of the most significant changes focuses on the management of mobile numbers linked to UPI IDs. According to the Department of Telecommunications (DoT), mobile numbers that remain inactive for 90 days can be reassigned to new users.

To address issues arising from outdated or recycled numbers, NPCI will require banks and PSPs to update mobile records weekly through the Mobile Number Revocation List (MNRL) and the Digital Intelligence Platform (DIP). As part of this initiative, UPI IDs associated with inactive mobile numbers will be deactivated from April 1, making it essential for users to ensure their registered mobile numbers remain active.

Additionally, NPCI is introducing stricter consent mechanisms for UPI number seeding. Users must explicitly opt in for the process, and consent cannot be collected during or before transactions. This measure is designed to enhance transparency, prevent unauthorized number linking, and protect user data.

Another significant change involves the discontinuation of the “Collect Payments” feature for person-to-person transactions due to rising fraud concerns. Moving forward, this feature will be restricted to verified merchants, while individual collect payments will be capped at ₹2,000. Furthermore, PSPs will be required to submit monthly reports on instances where UPI numbers were locally settled due to delays in NPCI’s system, ensuring greater accountability in digital transactions.

These updates will particularly affect users who have changed their mobile numbers without updating their bank records, those with cancelled or reassigned numbers still linked to UPI IDs, and individuals who have transferred their SIM cards without revising their banking details. To avoid disruptions in UPI services post-March 31, users must verify and update their mobile numbers with their respective banks.

With these changes, NPCI aims to strengthen India’s digital payment ecosystem, minimize fraud risks, and improve operational efficiency. As UPI continues to drive financial inclusion across the country, these updates will create a more secure and reliable transaction environment for millions of users.