National Payments Corporation of India (NPCI) has issued an addendum to its previous circular on the Numeric UPI ID resolution, introducing new guidelines aimed at improving interoperability and user experience for UPI number-based payments. These changes will take effect from April 1, 2025, and will require compliance from UPI member banks, UPI apps, and third-party app providers (TPAPs).
Key changes in UPI number management
The latest directive, issued under NPCI/UPI/OC-115E/2024-25, builds on the guidelines from 2021 and incorporates recommendations from the UPI Steering Committee meeting held in July 2024. The primary focus is to streamline the handling of UPI numbers, prevent errors due to recycled mobile numbers, and ensure transparency in user consent mechanisms.
Here are the key changes:
Regular updates on mobile number changes
Banks and PSP apps must use the Mobile Number Revocation List/Digital Intelligence Platform (MINRL/DIP) to update their databases at least once a week.
This step aims to minimise errors caused by mobile number churn, where previously assigned numbers are reallocated to new users.
User consent for UPI number seeding
UPI apps must obtain explicit user consent before seeding or porting a UPI number.
The consent mechanism should include an opt-in choice by default, meaning users must manually select the option to activate their UPI number.
The process must ensure clear and non-intrusive communication, avoiding misleading or forceful messaging.
Restrictions on the timing of consent collection
Users should not be asked for consent before or during a transaction.
Any messaging related to seeding or porting the UPI number should not mislead users into believing that failure to act would stop them from receiving payments.
Compliance deadline
All UPI members, including banks, apps, and third-party providers, are required to implement these changes by March 31, 2025. The updated framework is designed to enhance security, prevent fraud, and improve the overall user experience for UPI-based transactions.
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