NPCI Mandates Standardized UPI Transaction IDs: Key Changes Coming February 2025
MAS Team | 01 February 2025
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The National Payments Corporation of India (NPCI) has announced significant changes to UPI transaction protocols, set to take effect from February 1, 2025. In a move toward standardization, NPCI will prohibit the use of special characters in UPI transaction IDs, requiring all payment apps to use strictly alphanumeric characters.
This new directive mandates that UPI transaction IDs must be exactly 35 characters long, addressing current inconsistencies where IDs range from 4 to 35 digits. The standardization aims to eliminate duplicate transactions and enhance system efficiency. Non-compliant apps will face transaction declination by the central system, potentially affecting users of these applications.
Industry experts explain the significance of this change. Mohan K, TechFini's Founder, emphasizes that this standardization will enhance system efficiency and address security vulnerabilities. Alok Singh from Ongo notes that while major payment platforms have already adapted, some Payment Service Providers (PSPs) remain non-compliant.
The NPCI has outlined specific guidelines for handling transaction-related issues. In cases of duplicate transactions reaching the central system, liability will shift to the originating entity. Banks are instructed not to reverse funds in specific scenarios and must report unusual cases to NPCI immediately.
The standardization brings practical benefits for transaction tracking. The 35-digit alphanumeric format will enable easier identification of transaction details, including PSP information, remitter details, and transaction dates. This systematic approach aims to streamline the resolution of transaction-related queries and improve the overall efficiency of the UPI ecosystem.
As the deadline approaches, payment service providers and financial institutions are working to ensure their systems comply with these new specifications to prevent any disruption in UPI services for their users.
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