Starting February 1, 2025, these transactions via UPI apps will be declined: Why and how users will be affected

UPI

The National Payments Corporation of India (NPCI) has announced that UPI transactions containing special characters in their transaction ID will be declined starting February 1, 2025. This directive aims to enforce compliance with UPI technical specifications implemented back in March 2024.

In March 2024, NPCI issued a circular (OC 193) instructing all UPI participants to generate transaction IDs using only alphanumeric characters. This was introduced to align with technical standards and ensure uniformity in transaction processing.

Despite efforts to improve compliance, some ecosystem participants have continued to generate transaction IDs that include special characters. NPCI has now decided to enforce stricter measures by declining such transactions at the central system level.

From February 1, 2025, any UPI transaction containing special characters in its transaction ID will not be processed. Users making payments through UPI apps and merchants receiving payments must ensure that transaction IDs comply with the specified format to avoid disruptions.

All UPI participants, including banks, payment service providers, and third-party apps, must ensure that their systems adhere to the prescribed format. Entities are required to remove special characters from transaction IDs before the enforcement date to prevent payment failures.

NPCI has advised all UPI members to take necessary action and inform relevant stakeholders to ensure a smooth transition. The organisation has emphasised that compliance with UPI technical specifications is critical for seamless digital transactions.