The National Payment Corporation of India (NPCI) has recently issued new guidelines for banks, UPI payment applications and third party UPI service providers associated with UPI IDs.
These new mobile verification rules will come into effect from April 1, 2025. The aim of these new regulations is to increase the compatibility of the system, make it more user-friendly and reduce transaction errors linked to mobile number modifications.
What banks and UPI applications need to do
Banks and UPI applications need to update their mobile number records every week to prevent errors from recycled or modified numbers. Meanwhile, applications need to seek permission from users before assigning or updating numeric UPI IDs. Users need to actively opt in to use this feature, as the default setting is opt-out.
To avoid confusion among users, applications have been prohibited from asking for consent during transactions. If there are delays in NPCI’s verification system, UPI applications can temporarily resolve numeric UPI ID issues intermittently. However, these cases must be documented and reported to NPCI every month for monitoring purposes. What are recycled or churned numbers According to the rules of the Department of Telecom (DoT), once disconnected, a mobile number can be reassigned to a new user after 90 days.
Telecom providers usually deactivate numbers when customers do not perform any activity (calls, messages or data usage) for three consecutive months. Such reallocated numbers are called recycled or churned numbers. Applications that support UPI transactions will now have to ask permission before linking or transferring your UPI number. Your bank-verified mobile number acts as your UPI identifier, allowing you to perform transactions with the help of different UPI applications.
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