Unified Payments Interface (UPI) has become a game-changer in India’s digital payment ecosystem. From April 1, 2025, major updates to UPI payments are coming into effect that every user, bank, and fintech business must understand. These changes, introduced by the National Payments Corporation of India (NPCI), are designed to improve security, accuracy, and user experience.
If you use UPI for money transfers, merchant payments, or bill payments—or run a business dependent on UPI transactions—this guide will help you stay ahead of the curve.
UPI Payments Update
| Feature | What’s Changing | Why It Matters |
|---|---|---|
| Deactivation of UPI IDs | UPI IDs linked to mobile numbers inactive for 90+ days will be deactivated | Prevents misdirected payments to reassigned mobile numbers |
| Weekly Number Verification | Banks & PSPs must verify mobile number activity weekly using MNRL/DIP | Keeps user data current and reduces errors |
| User Consent for UPI Seeding | UPI apps must obtain explicit consent before linking numbers | Enhances user control and data protection |
| Action Required | Keep mobile number active & updated with your bank | Ensures uninterrupted UPI service |
The UPI update from April 1, 2025, is a crucial step toward making India’s digital payment systems more secure and reliable. By understanding and adapting to these changes, both individuals and businesses can protect themselves from potential fraud, errors, and service disruptions.
Whether you’re a casual user or a financial professional, staying informed and proactive is the key to a smooth UPI experience. Regularly updating mobile numbers, maintaining KYC compliance, and monitoring transactions can ensure seamless usage in the evolving digital landscape.
Why Is This UPI Update Important?
With over 13 billion UPI transactions recorded in January 2025 alone (RBI data), UPI is the backbone of digital India. However, as mobile numbers get reassigned frequently by telecom operators, there’s a risk that someone else’s UPI ID could be linked to your old number. That means your money might go to the wrong person.
These new rules are aimed at fixing that issue while enhancing overall digital hygiene in the ecosystem.
What Exactly Is Changing?
1. Deactivation of UPI IDs Linked to Inactive Mobile Numbers
- What It Means: If your mobile number hasn’t been used for 90+ days, your UPI ID linked to that number will be deactivated.
- Why It Matters: Prevents fraud or accidental transactions to someone who got your old number.
- What You Should Do: Ensure your UPI-linked number stays active. Make at least one call, SMS, or data usage within 3 months.
“Telecom providers often recycle numbers after 90 days of inactivity. This change makes sure old numbers don’t stay linked to your bank accounts.”
2. Weekly Verification by Banks and PSPs
- What It Means: Banks and payment apps must verify number activity every week using the MNRL (Mobile Number Revocation List) or DIP (Digital Intelligence Platform).
- Why It Matters: Keeps user data updated and accurate, reduces failed or fraudulent payments.
- What You Should Do: If you change your mobile number, update it with your bank immediately.
3. Explicit User Consent for UPI Seeding
- What It Means: Payment apps like PhonePe, Google Pay, or Paytm must ask you clearly before linking your mobile number to a UPI ID.
- Why It Matters: No more sneaky background activations. You stay in control.
- What You Should Do: Read consent popups carefully and verify before approving.
Additional Updates You Should Know
4. Stricter KYC Norms for UPI Onboarding
- What It Means: KYC (Know Your Customer) documentation will be made stricter and must be revalidated periodically.
- Why It Matters: Helps prevent fraudsters from creating fake UPI IDs.
- Tip: Keep your Aadhaar, PAN, or other KYC documents handy and updated with your bank.
5. Transaction Limits and Risk-Based Monitoring
- What It Means: NPCI and RBI are working on real-time monitoring of high-value or suspicious transactions.
- Why It Matters: Improves fraud detection and safeguards your money.
- Example: A sudden high-value transfer from a newly linked UPI ID may trigger a red flag.
6. UPI for International Payments
- What It Means: Select Indian banks now offer UPI for cross-border payments with countries like Singapore and UAE.
- Why It Matters: Great for NRIs and global businesses.
How Do These Changes Affect You?
For Individuals:
- Keep your mobile number active: Make regular use of the SIM linked to your UPI.
- Update details promptly: Changed your number? Notify your bank right away.
- Be alert to UPI consent screens: Never approve linking requests unless you’re sure.
- Maintain KYC Compliance: Ensure your documentation is current with your bank and UPI apps.
For Businesses:
- Verify vendor/customer details regularly
- Train staff to recognize consent prompts and mobile verification
- Communicate policy changes to users or clients who rely on UPI-based payments
- Use risk-mitigation tools for high-value transactions
How To Stay UPI-Compliant in 2025
Step 1: Check Your Registered Mobile Number
Login to your bank app and verify the number linked to your account.
Step 2: Make a Quick Activity
Make a phone call or send a text from your registered number to avoid deactivation.
Step 3: Update Mobile Number if Changed
Visit your branch or use mobile banking to update your number securely.
Step 4: Review UPI App Permissions
Check your UPI app settings and review linked accounts and numbers.
Step 5: Use Secure Networks
Always perform transactions over secure and private Wi-Fi or mobile data to avoid tampering.
Step 6: Regularly Check for App Updates
UPI apps will be updated to comply with new guidelines. Keep them updated for best experience.
FAQs About UPI Payments Update
Q1: What happens if my number is deactivated?
Your UPI ID linked to that number will stop working. You won’t be able to send or receive money.
Q2: Can I reactivate my UPI ID later?
Yes, but only after verifying your identity and linking an active mobile number again.
Q3: What is MNRL?
MNRL stands for Mobile Number Revocation List. It’s a centralized database that tracks inactive mobile numbers.
Q4: How often should I update my mobile number with my bank?
Every time you change your number—do it as soon as possible.
Q5: Will I lose money if someone else uses my old number?
There’s a risk, which is why these new rules are being implemented. It’s best to delink your number if you stop using it.
Q6: What documents are required for UPI KYC?
Aadhaar, PAN, or Passport are typically accepted. Check with your bank or app for their specific requirements.
Q7: Can I use UPI for payments abroad?
Yes, select banks now support UPI-based payments in countries like Singapore and UAE. Check with your bank.
