The National Payments Corporation of India (NPCI) has announced new guidelines requiring banks and UPI payment applications to implement weekly mobile number verification processes starting April 1, 2025. The directive aims to enhance interoperability and reduce transaction errors related to mobile number changes, building upon the NPCI’s comprehensive security updates for India’s digital payment ecosystem.
Under the new requirements, financial institutions and UPI apps must perform regular checks and updates of their mobile number records to address issues arising from recycled or changed phone numbers. The NPCI defines recycled numbers as those disconnected and reallocated to new subscribers after a 90-day period. The measure follows recent initiatives to combat fraud, including the government’s crackdown on fraudulent SIM cards used in digital payment scams.
The guidelines mandate that UPI applications obtain explicit user consent before seeding or porting UPI numbers. Users will be defaulted to an opt-out status and must actively choose to participate. To prevent confusion, consent requests cannot be made during active transactions. The approach is part of the NPCI’s broader strategy to strengthen authentication measures across the UPI-based payment infrastructure.
Financial institutions and UPI service providers must achieve compliance with these regulations by March 31, 2025. Beginning April 1, 2025, they will be required to submit monthly reports to the NPCI detailing their management of Numeric UPI IDs. The reporting requirement complements the NPCI’s recent mandate for 35-digit alphanumeric transaction IDs, further standardizing UPI operations.
For consumers, maintaining active mobile numbers registered with UPI services will be essential to prevent service interruption. Users will receive notifications before any suspension of UPI services and can restore access by updating their mobile number information prior to the deadline. The verification system builds upon existing authentication methods in India’s digital banking sector, where technologies like face authentication for AePS have shown significant adoption.
The initiative represents part of the NPCI’s broader efforts to strengthen the infrastructure supporting India’s digital payment ecosystem. The new verification requirements aim to enhance transaction accuracy while maintaining system interoperability, supporting the country’s continued transition toward digital financial services.
Sources: Tax Concept, The Tatva, Cyber Peace Foundation
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