NPCI Announces New UPI Transaction ID Guidelines Effective February 1, 2025
The National Payments Corporation of India (NPCI), the governing body for retail payments and settlement systems in India, has introduced new guidelines for Unified Payments Interface (UPI) transaction IDs. Effective from February 1, 2025, these changes will restrict the use of special characters in UPI transaction IDs.
UPI Transaction ID Changes: What You Need to Know
According to the NPCI circular issued on January 9, 2024, UPI transaction IDs **containing special characters such as #, @, $, or *** will be blacklisted. This means that any UPI payment app generating transaction IDs with special characters will face rejection by the central system.
Key Highlights of the New UPI Regulation:
- No Special Characters Allowed: UPI transaction IDs must be strictly alphanumeric (letters and numbers only).
- Effective Date: The new rule will be enforced from February 1, 2025.
- Non-Compliant Transactions Will Be Declined: Any UPI transaction containing special characters in its ID will be automatically rejected by the NPCI system.
- Compliance Required by All UPI Ecosystem Players: Banks, fintech companies, and payment service providers must ensure adherence to the new regulation.
What Are Special Characters?
Special characters include any symbol that is not a letter (A-Z, a-z) or a number (0-9). Examples include:
- Punctuation Marks: #, @, $, %, &, *
- Accent Marks & Other Symbols: `, ~, ^, |
Why Is NPCI Enforcing This Change?
NPCI has taken this step to ensure standardization, security, and compliance within the UPI payment ecosystem. The move aims to:
- Prevent technical inconsistencies across platforms.
- Strengthen payment security and fraud prevention.
- Improve system efficiency and transaction processing speed.
UPI’s Dominance in India’s Digital Payments Landscape
UPI has revolutionized digital transactions in India, accounting for a massive 83% share of the country’s digital payments in 2024. According to the RBI Payment System Report:
- UPI’s share surged from 34% in 2019 to 83% in 2024.
- Other payment methods like RTGS, NEFT, IMPS, credit cards, and debit cards declined from 66% to 17%.
- UPI transactions grew from 375 crore in 2018 to 17,221 crore in 2024.
- The total transaction value skyrocketed from ₹5.86 lakh crore in 2018 to ₹246.83 lakh crore in 2024.
How This Change Affects UPI Users
If you are using a UPI-based payment app, ensure that it complies with the new transaction ID format. Any transaction with special characters in the ID will be declined starting February 1, 2025.
Conclusion
The NPCI’s new UPI transaction ID rules mark a significant shift in India’s digital payment infrastructure. With UPI dominating digital transactions, this update will drive better security, efficiency, and compliance. Businesses, banks, and fintech companies must act now to update their systems before the February 2025 deadline.
Stay informed and ensure a smooth payment experience by keeping your UPI transactions compliant with NPCI’s latest guidelines!
