The National Payments Corporation of India (NPCI) has issued a new directive for banks, UPI payment apps (PSPs), and third-party UPI service providers regarding the use of numeric UPI IDs. These regulations aim to improve interoperability, minimize transaction errors due to mobile number changes, and enhance user convenience. All UPI service providers must comply with these updated guidelines by March 31, 2025.

 

According to NPCI’s announcement on March 3, 2025, banks and PSP apps must integrate the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) into their systems. They are required to update their databases at least once a week to ensure that recycled or deactivated mobile numbers are correctly reflected. This proactive measure will significantly reduce errors caused by outdated mobile number records in UPI transactions.

 

These new rules apply to banks, UPI payment service providers, and third-party UPI service platforms, ensuring that all stakeholders update their processes to maintain accuracy in mobile number verification.

 

Changes Effective April 1, 2025

1. Regular Mobile Number Verification: Banks and UPI apps must verify and update mobile number records weekly to prevent transaction errors caused by reassigned or deactivated numbers.

 

2. User Consent for Numeric UPI ID Assignment: UPI apps must obtain explicit user consent before assigning or updating a numeric UPI ID. Users will be opted out by default and will need to manually opt-in. Consent requests cannot be made during transactions to avoid confusion.

 

3. Temporary Issue Resolution: If NPCI’s system experiences delays in verifying numeric UPI IDs, UPI apps can temporarily handle the issue internally. However, such instances must be reported to NPCI on a monthly basis to maintain transparency.

 

4. Mandatory Monthly Reporting: Banks and UPI apps must submit reports to NPCI detailing how they are managing numeric UPI IDs.

 

As per the Department of Telecommunications (DoT) guidelines, a disconnected mobile number can be reassigned to a new user after a 90-day period of inactivity. If a number remains unused for three months—without calls, texts, or data usage—it is deactivated by the telecom provider and may later be reassigned to a different subscriber. Such numbers are referred to as recycled or churned numbers.

 

The introduction of explicit user consent for numeric UPI ID assignments will prevent potential misuse of reassigned mobile numbers. Previously, consent was not explicitly required, but moving forward, banks and PSPs must seek clear approval from users before linking a numeric UPI ID to a phone number. Additionally, the frequent updates in bank and PSP databases will ensure accurate mapping of UPI identities, reducing the risk of misrouted transactions and enhancing security.

 

By implementing these changes, NPCI aims to make UPI transactions more secure, efficient, and user-friendly. The initiative is expected to minimize transaction errors due to mobile number changes and improve transparency across the UPI ecosystem. Compliance with these guidelines by March 31, 2025, is mandatory for all banks and UPI service providers, ensuring a smoother and safer digital payment experience for users.