New UPI rule takes effect today: What Google Pay, Paytm, and other users must do to avoid account deactivation

UPI

The National Payments Corporation of India (NPCI) has issued an addendum to its previous circular on numeric UPI ID resolution. The new guidelines, effective from April 1, 2025, aim to enhance interoperability, prevent errors due to recycled mobile numbers, and improve user consent mechanisms. All UPI member banks, PSPs, and third-party app providers (TPAPs) must comply with these changes before March 31, 2025.

NPCI’s latest directive mandates that banks and payment service providers (PSPs) update their databases at least weekly using the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP). This will reduce errors caused by mobile number churn, where reassigned numbers could inadvertently be linked to previous users’ UPI accounts.

Additionally, UPI apps must obtain explicit user consent before seeding or porting a UPI number. The consent process will now require an opt-in action from users instead of being pre-selected by default. Communication regarding consent must be clear, avoiding misleading or forceful messaging.

Users who do not update their mobile numbers with their UPI app or bank may face issues such as:

Loss of access to UPI accounts if their number has been reassigned.

Failed or misdirected transactions.

Possible UPI ID deactivation due to outdated information.

Inability to receive payments without explicit consent for seeding or porting their UPI number.

Delayed resolution of number-related discrepancies, as PSPs will need to report such issues to NPCI.

To ensure continued access to UPI services, users should:

Update their registered mobile numbers with their bank and UPI apps.

Check for consent requests in their UPI apps and manually opt in if required.

Avoid ignoring UPI-related notifications from their bank or PSP app.