The National Payments Corporation of India (NPCI) has updated its earlier circular on Numeric UPI ID resolution, introducing fresh guidelines to enhance interoperability and user experience for UPI number-based transactions. These new rules will come into effect on April 1, 2025, and must be followed by 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 be designed with an opt-in feature by default, requiring users to manually enable their UPI number. The process must be transparent and user-friendly, ensuring clear communication without any misleading or forceful prompts.
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.