The National Payments Corporation of India (NPCI) is implementing several updates to its Unified Payments Interface (UPI) system to enhance security and transaction efficiency. The changes include new guidelines for mobile number management and UPI ID maintenance, building upon the organization’s ongoing efforts to strengthen India’s digital payment infrastructure.
Under current directives, payment apps must deactivate UPI IDs that have remained inactive for more than one year. The measure aims to maintain the cleanliness and security of the UPI ecosystem, following earlier NPCI initiatives to combat fraud and unauthorized transactions through inactive accounts.
Starting April 1, 2025, banks and UPI service providers will be required to follow new guidelines and submit monthly compliance reports to the NPCI. The updated regulations focus on regular mobile number verification to prevent misdirected transactions and strengthen security measures. UPI applications will need to obtain explicit user consent for mobile number updates, with clear opt-in options provided to users.
Transaction limits remain set at Rs. 1 lakh per day for standard UPI transactions. However, specific categories including capital markets, insurance, collections, and foreign inward remittances maintain a higher limit of Rs. 2 lakh. The tiered structure supports the NPCI’s goal of balancing convenience with security in digital payments. Additionally, transactions above Rs. 2,000 made through Prepaid Payment Instruments (PPIs) are subject to an interchange fee of up to 1.1 percent as of 2024.
The NPCI’s new guidelines emphasize user consent and transparency in mobile number updates, prohibiting misleading or coercive consent messages. The measures are part of a broader initiative to enhance the security and reliability of India’s digital payment infrastructure, which has seen significant growth in adoption across various sectors, including the recent integration of face authentication for digital banking and expanded UPI functionality for digital wallets.
The implementation of these security updates comes as India continues to strengthen its position as a global leader in digital payments, with the NPCI working alongside the Reserve Bank of India to establish robust security protocols and authentication mechanisms for the growing digital economy.
Sources: National Herald India, Rights of Employees, ClearTax
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