The National Payments Corporation of India (NPCI) has introduced a significant change to UPI transactions.
Starting from February 1, UPI IDs that include special characters will no longer be accepted.
Users must ensure their IDs only contain alphanumeric characters (letters and numbers). This change aims to simplify transactions and enhance security.
Why NPCI Made This Decision
UPI (Unified Payments Interface) has become a widely used method for payments in India, from small vendors to large stores.
The move by NPCI comes at a time when digital payments are growing rapidly, particularly after the 2016 demonetization.
With digital transactions on the rise, NPCI is focusing on streamlining payment processes and making them safer for users.
Blocked IDs
NPCI had previously recommended that users adopt alphanumeric characters for their UPI IDs. Despite this, some users have continued using IDs with special characters.
To ensure compliance, NPCI will block all UPI IDs that do not follow these new guidelines. All banks have been instructed to enforce these changes strictly.
With UPI transactions reaching 16.73 billion by December 2024, this rule aims to support the continued growth and security of digital payments in India.
Reason Behind NPCI’s Decision
UPI (Unified Payments Interface) has become a widely-used payment method across India, with users ranging from small vendors to large retailers.
This decision by the NPCI comes at a time when digital payments have been steadily increasing, especially after the demonetisation of 2016.
To help maintain security and simplify transactions, NPCI has decided to block any non-compliant UPI IDs, and all banking institutions are required to follow these new guidelines strictly.
The number of UPI transactions has been growing rapidly, setting records.
By December 2024, UPI transactions had reached 16.73 billion, reflecting the growing use of digital payments across the country.
