New UPI Rules Starting April 1, 2025: Key Changes You Should Know

The National Payments Corporation of India (NPCI) has introduced new UPI guidelines to improve security and reduce fraud. These rules, effective from April 1, 2025, will impact how banks, payment apps (like PhonePe, GPay, and Paytm), and UPI users handle transactions—especially those linked to inactive mobile numbers.

Here’s everything you need to know about the upcoming UPI changes and how they might affect you.

What’s Changing in UPI from April 1, 2025?

1. Deactivation of UPI IDs Linked to Inactive Mobile Numbers

• Telecom providers recycle inactive mobile numbers (after 90 days of no usage) and assign them to new users.
• If your bank-registered mobile number has been inactive, your UPI ID will be deactivated.
• Solution: Ensure your registered mobile number is active. Update your bank details if your number has changed.

2. Weekly Database Updates Using MNRL/DIP

• Banks and payment apps must now check and update their records weekly using the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP).
• This reduces errors caused by outdated or reassigned mobile numbers.

3. Stricter Rules for “Collect Payments” Feature

• To curb fraud, UPI’s “Collect Payment” feature will now be:
  • Limited to verified merchants (not available for person-to-person transactions).
  • Capped at ₹2,000 for small payments.

How Will This Affect You?

✅ Good for Security: Fewer frauds due to stricter checks on mobile numbers and collect payments.
⚠️ Check Your Mobile Number: If your bank-registered number is inactive, your UPI may stop working.
🔔 Action Needed: Update your mobile number with your bank if it has changed or is unused.

What Should UPI Users Do?

1. Check if your registered mobile number is active (used for calls, SMS, or data in the last 3 months).
2. Update your bank details if your number has changed.
3. Avoid inactive SIMs—if your number gets recycled, your UPI access could be blocked.

Final Thoughts

The new UPI rules (2025) aim to reduce fraud and improve transaction security. While most users won’t face issues, those with inactive mobile numbers must update their bank details to avoid UPI disruptions.

Stay informed and ensure your UPI remains functional after April 1!