New UPI Rules from April 1: Key Updates Every User Should Know

The National Payments Corporation of India (NPCI) is rolling out significant changes to UPI transactions starting April 1, 2025. These updates focus on enhancing security, reducing fraud, and ensuring a seamless digital payment experience for users.

Major Changes in UPI Transactions

1. Deactivation of UPI IDs Linked to Inactive Mobile Numbers

To prevent misuse and errors, banks, payment operators, and UPI apps (like PhonePe, Google Pay, and Paytm) must integrate the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP). This system will regularly update databases to remove UPI IDs linked to inactive mobile numbers.

As per the Department of Telecommunications (DoT) guidelines, mobile numbers left unused for 90 days can be reassigned to new users. Under the new UPI rules, any UPI ID linked to such inactive numbers will be automatically deactivated.

What You Should Do:

• Keep your registered mobile number active to avoid losing access to UPI services.
• If you’ve changed your number, update it with your bank immediately to prevent disruptions.

2. Restrictions on “Collect Payments” Feature

To combat fraud, NPCI is introducing limitations on the “Collect Payments” (pull-payment) feature:

• Only verified large merchants will be allowed to use this function without restrictions.
• Person-to-person (P2P) collect payment requests will be capped at ₹2,000 per transaction.

This measure is aimed at preventing scammers from tricking users into unknowingly approving fraudulent transactions.

How to Stay Safe:

• Double-check collect payment requests before approving them.
• Avoid responding to suspicious UPI requests from unknown sources.

Key Takeaways for UPI Users

• Ensure Your Mobile Number Stays Active – Inactive numbers will lead to UPI ID deactivation.
• Be Cautious with Collect Payments Requests – Approve only from trusted sources.
• Stay Updated – Follow official announcements from your bank or UPI service provider.

With these new rules, NPCI aims to make UPI transactions safer, more efficient, and fraud-proof. By staying informed and proactive, you can continue using UPI without disruptions.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any advisement. FINOSTRY suggests its readers/audience to consult their career advisors before making decisions.)