Key UPI Changes From April 1, 2025: All You Need To Know

National Payments Corporation of India (NPCI) has announced new guidelines for number-based UPI payments to make digital transaction more seamless, error free, protective and user friendly.

The latest adjustments include the process of regular mobile number updating and have been added to the previous guidelines on the Numeric UPI ID resolution. It will come into effect from April 1, 2025, and based on the recommendations of UPI Steering Committee meeting held in July 2024.

Key Changes:

The committee had recommended a few changes regarding UPI framework, which include.
-    Banks need to update the UPI Number regularly.

-    Under the new guidelines, banks and Payment Services Provider are mandated to update their records and data regularly, at least once a week, through Mobile Number Revocation List/Digital Intelligence Platform (MINRL/DIP). 
-    These adjustments are expected to reduce the inconsistencies caused by mobile number churn as in some cases a used number has been assigned to new user without data upgradation resulting in various errors. 
-    UPI apps are bound for consent of users before seeding or porting a UPI number. 
-    Banks should be respectful and will provide an opt-in choice to users to activate their UPI Numbers. 
-    Banks are advised to ensure a clear communication with no use of coercive and forceful language. 
-    Users should not be asked for link permission before or during a payment.

Additionally, the adjustments are also advised to avoid misleading the users by forwarding messages like subject to failure would stop them from receiving the payments.

What Is The Objective?

These guidelines are aimed at security enhancements, fraud detection and creating a more secure ecosystem. To provide a more seamless and user-friendly UPI experience, UPI members banks, UPI apps, and Third-Party App Providers (TPAPs) are required to implement the revised guidelines by March 31, 2025.