New UPI rule regarding mobile numbers to become effective from April 1: Full details

The new guideline is aimed at reducing transaction errors caused due to outdated or reassigned mobile numbers.

The National Payments Corporation of India (NPCI) has announced new directives for improving the security and efficiency of Unified Payments Interface (UPI) transactions, which will come into effect from April 1, 2025.

UPI is an instant payment system developed by the NPCI. (Representational Image)

The new guidelines require banks, Payment Service Providers (PSPs), and third-party UPI service providers such as PhonePe, GPay and Paytm to implement certain measures regarding numeric UPI IDs.

“The Banks, PSP App shall use the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) and update their database accordingly at regular intervals, at least on a weekly basis,” the NPCI's directive read.

This is aimed at reducing transaction errors caused due to outdated or reassigned mobile numbers.

The Department of Telecommunications (DoT) guidelines state that a mobile number which has been disconnected can be reallocated to a new subscriber after a 90 day gap.

Usually, if a subscriber makes no calls, sends no texts, or does not use mobile data for three months, the number gets deactivated by the telecom service provider and is then reassigned to another subscriber.

The new UPI guidelines mirror this, meaning that UPI IDs linked to inactive mobile numbers will get deactivated.

Due to this, users have to ensure that their mobile numbers registered with their banks are active and in use.

The NPCI has also started eliminating the “Collect Payments” features from UPI to deal with the increasing number of frauds, according to an Economic Times report which added that this system will be restricted to only large, verified merchants, while person-to-person collect payments will get capped at ₹2,000.