UPI users alert! Banks & UPI apps to implement new mobile number verification rules from April 1, 2025

The National Payments Corporation of India (NPCI) issued a new directive to banks, UPI payment apps (PSPs), and third-party United Payment Interface (UPI) service providers regarding the use of numeric UPI IDs. These guidelines aim to improve interoperability, enhance user convenience, and reduce errors caused by mobile number changes in UPI transactions. All UPI service providers are required to comply with the new rules by March 31, 2025.

According to the NPCI press release on March 3, 2025, “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 weekly basis. The activity of recycled or the churned mobile numbers reflecting correctly in the bank and PSPTTPAP databases will reduce the chances of errors due to churned mobile numbers.”

Who is this for?

This notice is for banks, UPI payment apps (PSPs), and third-party UPI service providers.

What will change from April 1, 2025?
Banks and UPI apps will check and update their mobile number records at least once a week to avoid errors caused by recycled or changed mobile numbers. UPI apps will ask users for clear and explicit consent before assigning or updating their numeric UPI ID. By default, users should be opted out and must actively choose to opt-in if they wish to use this feature. Apps cannot ask for this consent during a transaction to avoid confusion.

If NPCI’s system takes too long to verify a Numeric UPI ID, UPI apps can temporarily resolve the issue internally. However, these cases must be reported to NPCI every month for transparency.

What are recycled or churned-out numbers?
Guidelines issued by the Department of Telecommunications (DoT) stipulate that a mobile number that has been disconnected, can be reallocated to a new subscriber after a gap of 90 days, or 3 months. Generally, if a subscriber makes no calls or texts, or does not use data on a particular mobile number for 3 months, it is deactivated by the telecom service provider.

These operators then reassign such mobile numbers to another subscriber, after a certain time gap. These are known as recycled, or churned numbers.

UPI will ask for consent
UPI app will now have to seek your consent on whether you wish to seed or port or UPI number. A UPI number is your bank-verified phone number, which acts as an identifier of your UPI ID. It allows you to receive money from users, regardless of the app you are on.

UPI ID linked to inactive mobile number? With this move of NPCI, it will be hard to misuse your UPI ID with recycled number

While earlier, this consent was not sought explicitly, going ahead, this will have to be done. Also, regular updates at the PSP/bank’s end in their databases will ensure accurate mapping of U.P.I. identity, and prevent transactions from being routed wrongly, at the same time enhancing user security.

All UPI banks and apps must follow these rules by March 31, 2025.
From April 1, 2025, banks and UPI apps must share monthly reports with NPCI on how they handle Numeric UPI IDs.

This update is aimed at making UPI transactions smoother, safer, and more user-friendly by reducing errors related to mobile number changes and improving transparency in UPI payments.