Bank Changes National Payments Corporation of India (NPCI) has rolled out a latest circular to deal with rollout of numeric UPI ID mapper to enable UPI number.
A UPI steering committee meeting was held on July 16, 2024 and multiple working group discussions for UPI numbers were held which were aimed at enhancing interoperability and user convenience in UPI number-based UPI payments.
The new rules state that the banks and payment service providers are supposed to update their list by removing the numbers which have been disconnected or surrendered i.e., churned mobile numbers. The banks are supposed to update their database at regular intervals — at least on a weekly basis, reads the circular.
To reduce the errors
The NPCI circular states that the activity of recycled or the churned mobile numbers reflecting correctly in the bank and PSP/TPAP databases will reduce the chances of errors due to churned mobile numbers.
The NPCI also said that the UPI app will ensure clear, non intrusive communication without misleading/ forceful messaging. Consent will not be taken before or during a transaction in any condition.
Seeding or porting communications of UPI number will exclude miscommunication (for example — the user will stop receiving the money using UPI without taking an action or seeding the number in mapper).
If NPCI mapper response time is not as per requirements, then the PSP app can resolve the number locally subject to the PSP App reporting such occurrences on a monthly basis to NPCI. All members are told to comply before March 31, 2025.
Monthly mapper data which needs to be shared by banks and payment service providers need to be in the following format:
I. Total seeding count
II. Active unique users on mapper for the month
III. Total CMID transactions count for the month
IV. Total UPI number based transactions resolved locally for the month
The circular further adds that the requested data will be provided by PSP/UPI app with NPCI as per the framework from April 1, 2025 onwards.
Based on the information available, here are some key UPI changes coming into effect from April 1, 2025:
- Handling of Churned Mobile Numbers:
- A significant focus is on improving the accuracy of mobile number data associated with UPI. Banks and payment service providers are mandated to regularly update their databases, particularly regarding “churned” or disconnected mobile numbers.
- This aims to reduce errors and potential fraud arising from recycled mobile numbers.
- Banks are expected to perform these database updates at least weekly.
- UPI Lite Enhancements:
- There are changes coming to UPI Lite, which is used for small value transactions.
- Specifically, the “transfer out” functionality will be implemented. This will allow users to move funds from their UPI Lite balance back to their source bank account.
- There are also requirements for banks that issue UPI lite to maintain LRN (lite reference number) level balances, and to reconcile that data daily with NPCI data.
- There is also focus on enhanced security for UPI lite, with requirements for app passcodes, biometrics, or pattern based locks.
- Data Reporting:
- Banks and payment service providers will be required to provide monthly reports to the National Payments Corporation of India (NPCI) with detailed transaction data.
In essence, the changes are geared towards:
- Enhancing the security and reliability of UPI transactions.
- Improving the user experience by minimizing errors.
- Strengthening the overall infrastructure of the UPI ecosystem.
I hope this information is helpful.