NPCI Sets Weekly Mobile Number Update Rule for Banks and UPI Apps from April 2025

NPCI has come out with new guidelines for the banks, UPI payment apps (PSPs) and third-party UPI service providers on how to use numeric UPI IDs. The goal is to improve compatibility, make transactions easier, and reduce errors caused by mobile number changes. All UPI service providers must follow these rules by March 31, 2025.

Key Highlights

In a press release on March 3, 2025, NPCI stressed that banks and PSPs must use the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) and update their databases at least once a week. This step will help prevent transaction errors caused by changes in users’ mobile numbers.

Who Needs to Comply?

Banks, UPI payment apps, and third-party UPI service providers handling UPI transactions must follow this directive.

What Changes from April 1, 2025?

Banks and UPI Apps Should follow the rules mentioned below:

• Update Mobile Number Records on a Weekly Basis: Avoid errors due to recycled or altered mobile numbers.
• Take User Consent for Numeric UPI IDs: Users must actively consent without being asked during a transaction.
• Deal with NPCI Verifications Getting Delayed: If delays in verifications take place, UPI apps may handle such temporary instances but will be required to report the same to NPCI every month to maintain transparency.

Understanding Recycled or Churned Numbers

As per the Department of Telecommunications (DoT) guidelines, disconnected mobile numbers can be reassigned after 90 days. If a user does not make calls, send texts, or use data for three months, the telecom provider deactivates the number and reallocates it to a new subscriber. These reassigned numbers are known as recycled or churned numbers.

Consent Requirement for UPI Apps

Under the new guidelines, UPI apps must get user consent before assigning or transferring their UPI number. This figure, as confirmed by the bank, is used as an identifier for the UPI ID, allowing users to accept payments through various apps.

Earlier, UPI apps and banks did not require express user consent. But with the new guidelines, getting consent is a must. PSPs and bank periodic reporting will help map UPI IDs correctly, reducing transaction errors as well as security risks for users.

Reporting Requirements

UPI apps and banks will be required to meet these regulations till March 31, 2025. From April 1, 2025, they will be required to report quarterly to NPCI about how they are handling Numeric UPI IDs.

Conclusion

These changes aims on making UPI transactions safe, easy to use, and more user-friendly. The new regulations by NPCI are an important move towards a safer and more efficient digital payments system in India by enhancing transparency and reducing errors caused by mobile number changes. The aim of these changes is to make UPI transactions safer, easier to use, and more user-friendly.