Are you one of the millions of Indians who rely on GPay, Paytm, PhonePe, or other UPI apps for your daily transactions? Get ready for a significant shift! Starting April 1, 2025, a new rule is being enforced that could directly impact how you use these platforms. This isn’t about transaction fees or app updates; it’s a fundamental change aimed at enhancing the security and accuracy of your UPI payments.
The National Payments Corporation of India (NPCI), the governing body for UPI, has issued a directive mandating all banks and UPI service providers to implement stringent new guidelines concerning mobile number verification. This move is designed to tackle the growing issue of errors arising from recycled or churned mobile numbers. If your UPI ID is linked to a mobile number that has been inactive for a while or has been reassigned to a new user, your UPI services might be affected.
What Exactly is Changing on April 1?
The core of the new rule revolves around the verification and updating of mobile numbers linked to UPI IDs. Here’s a breakdown of what you need to know:
- Weekly Database Updates: Banks and UPI apps are now required to check and update their mobile number records at least once a week. They will use the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) to ensure their databases accurately reflect the current status of mobile numbers. This frequent updating aims to minimize errors caused by outdated information.
- Mandatory Explicit Consent for Numeric UPI IDs: From April 1, 2025, you will be asked for clear and explicit consent before a numeric UPI ID is assigned or updated for your account. This means that by default, users will be opted out of this feature and will need to actively choose to opt-in if they wish to use it. This consent cannot be requested during a transaction to avoid any confusion or potential misuse.
- Deactivation of UPI IDs Linked to Inactive Numbers: If the mobile number registered with your bank has been inactive for an extended period, your associated UPI ID will be unlinked. This means you might not be able to use UPI services connected to that number until you ensure your bank records are updated with an active mobile number.
- Focus on Accuracy and Security: These changes are primarily driven by the need to improve the accuracy of UPI transactions and enhance user security. Recycled mobile numbers, which are disconnected and then reassigned to new users after about 90 days, have posed a risk of misdirected payments and potential fraud. The new rules aim to mitigate these risks.
Why is This Change Necessary?
Think about this scenario: You change your mobile number but forget to update it with your bank and on your UPI apps. Your old number gets reassigned to someone else. Now, if someone tries to send you money using your old UPI ID (linked to your previous number), the funds might end up in the wrong hands. This is precisely what the NPCI is trying to prevent.
The Department of Telecommunications (DoT) guidelines state that a disconnected mobile number can be reallocated to a new subscriber after a gap of three months. Telecom operators typically deactivate numbers if there’s no usage (calls, texts, data) for three months. These recycled numbers, if still linked to old UPI IDs, can lead to transactional errors and security vulnerabilities.
By mandating weekly updates and explicit user consent, the NPCI aims to ensure that UPI IDs are always linked to active and correctly verified mobile numbers. This will reduce the chances of payments going to the wrong recipients and enhance the overall trust in the UPI ecosystem.
What Do You Need to Do?
For most regular UPI users, the impact of this rule change might be minimal, provided your mobile number linked to your bank account is active and up-to-date. However, here are a few things you should consider:
- Ensure Your Mobile Number is Active: If you haven’t used your registered mobile number for a while, it’s a good idea to make sure it’s still active. Contact your telecom operator if you have any doubts.
- Verify Your Bank Records: Double-check with your bank that they have your current mobile number registered for your account. You can usually do this through your bank’s mobile app or by visiting a branch.
- Look Out for Consent Requests: When you use your UPI apps after April 1, 2025, pay attention to any requests for explicit consent regarding your numeric UPI ID. Make sure you understand what you are agreeing to.
- Update Your Mobile Number Promptly if Changed: If you change your mobile number, ensure you update it immediately with your bank and on all your UPI apps (GPay, Paytm, PhonePe, etc.). This is crucial to avoid any disruption in your UPI services.
What About the “Collect Request” Feature?
While the primary focus of the April 1 rule change is on mobile number verification, it’s also worth noting that the NPCI has been gradually phasing out the “Collect Payments” functionality to combat rising fraud. This pull-payment system is now restricted to large, verified merchants only, with person-to-person collect payments being capped at ₹2,000. This is a separate measure aimed at enhancing the security of UPI transactions.
Impact on GPay, Paytm, and Other UPI Apps
All UPI-enabled apps, including popular ones like Google Pay, Paytm, and PhonePe, will need to comply with these new guidelines by March 31, 2025. This means they will be updating their systems and user interfaces to incorporate the weekly database checks and the explicit consent mechanism for numeric UPI IDs.
Users might see prompts within these apps asking for their consent or informing them about the new verification processes. It’s essential to follow these instructions to ensure uninterrupted UPI services. These companies have played a significant role in popularizing UPI, and their adherence to these updated regulations is crucial for maintaining the reliability and efficiency of the digital payment ecosystem.
A Step Towards a More Secure Digital Payment Future
The enforcement of these new rules from April 1, 2025, marks a significant step towards making UPI transactions more secure and reducing errors. While it might require a bit of awareness and action from users to ensure their mobile numbers are updated, the long-term benefits of a more reliable and secure digital payment system are substantial.
So, are you ready for this change? By taking a few simple steps to verify your mobile number and staying informed about these new guidelines, you can continue to enjoy the convenience and efficiency of UPI payments without any hiccups. Make sure your digital wallet is in order for a smoother transition into this new phase of UPI.
