In a major move for UPI (Unified Payments Interface) users, the National Payments Corporation of India (NPCI) has said that starting now, UPI users will be able to use Voice-based Search and Personal Assistance on their UPI apps. From 1st February 2025, any transaction that contains special characters in its Transaction IDs will be blocked. From now on, UPI transaction IDs can only have alphanumeric (A-Z, 0-9) characters.
This move is a part of the NPCI’s initiative to enhance the efficiency and security of digital transactions in the country. UPI has been witnessing exponential growth, with December 2024 registering a whopping 16.73 billion transactions and an 8% growth over November’s 15.48 billion. The overall transaction value also surged to ₹23.25 lakh crore in December, compared to ₹21.55 lakh crore in November.
What It Means for UPI Users?
If you rely on UPI for daily payments — be it while paying an Uber driver, making online purchases, or buying a cup of tea from the roadside — you have probably noticed that a new Transaction ID is generated for every such transaction. Often, these IDs can be alphanumeric, but some of them may also include special characters as hyphen, underscore, or symbols.
What this means is, starting from February 1st, 2025, any transaction whose ID contains a special character will be automatically rejected. The move is also to streamline UPI transactions and prevent potential mistakes or fraud.
Instructions Issued to Banks and UPI Apps by the NPCI
After that, NPCI released a circular on 9th January directing all banks and platforms enabled with bank apps, that transaction IDs should be generated using only alphanumeric characters. This rule is in effect, although most banks and payment apps have already adopted it, some have yet to comply. NPCI has directed that this rule is to be followed from now on by all the participant entities (which includes the banks and Digital Payment Platforms).
The Rise of UPI Transactions Continues
UPI, since its introduction, and particularly after the 2016 demonetization, has emerged as India’s most-used digital payment system. Recent data show that it is being adopted at an increasing pace, with never before seen extremes of transactions and transaction values. There was before UPI, and then there’s after UPI — it has completely transformed the way Indians pay and enabled millions of Indians to engage in digital payment with ease.
The Jumped Deposit Scam: The Truth Behind the Myth
These new updates come in the face of a new style of online fraud called the Jumped Deposit Scam. Fraudsters are accused of depositing small amounts into users’ accounts before then convincing them to approve larger payment requests. But NPCI said no such scams have been found on the UPI platform.
In a statement to the press, NPCI wrote, “Factual inaccuracies and technical discrepancies in the recent media reports regarding Jumped Deposit Scam have created unnecessary panic among the UPI user community.”
NPCI also added that a transaction cannot be automatically approved just by opening a UPI or banking app. A UPI PIN must be entered to approve each payment manually. This provides an additional layer of security for users as no transaction can be processed without the PIN.
Key Takeaways for UPI Users
- Validate Your Transfer IDs: Validate they’re alphanumeric and have no extra characters.
- Stay Updated: Follow NPCI or your bank for news on UPI directions.
- Be Wary of Fake Requests — Don’t Share Your UPI PIN
- Experience Smooth Payments: UPI is still one of the most secure and convenient payment methods in India.
These changes are part of UPI evolution that will make it more secure and user friendly. Be vigilant, follow the rules and keep enjoying the ease digital payments bring!