UPI Transactions to See Key Change from February 1, 2025
The National Payments Corporation of India (NPCI) has announced a significant update to the Unified Payments Interface (UPI) system, which will take effect on February 1, 2025. As part of this update, UPI apps that generate transaction IDs containing special characters will no longer be able to process payments.
The move is aimed at standardizing UPI transaction IDs by enforcing a 35-character limit that allows only alphanumeric characters (letters and numbers). The NPCI believes this change will enhance security, improve efficiency, and reduce transaction errors in the UPI ecosystem.
How This Will Impact UPI Users
From February 1, transactions will fail if the payment app still generates transaction IDs containing special characters like @, #, &, and others. Most major UPI service providers have already complied with the new standards, but users relying on smaller or non-compliant apps may face payment failures.
To avoid disruptions, UPI users are advised to:
- Check their UPI app’s compliance with NPCI’s new guidelines.
- Update their UPI apps to the latest versions to ensure compatibility.
- Switch to a compliant UPI app if their current app does not meeti the new transaction ID standards.
Why NPCI is Implementing This Change
The shift to alphanumeric transaction IDs is designed to:
- Standardize transaction formats: With over 200 UPI apps, various systems for generating transaction IDs have led to inconsistencies. The new rule will ensure uniformity, making transaction tracking easier.
- Improve system efficiency: Removing special characters will enhance transaction processing speed and accuracy while reducing payment failures.
- Strengthen security: Special characters in transaction IDs could introduce security vulnerabilities or errors. This update will further secure UPI transactions.
Industry Experts Weigh In
Experts in the digital payments space believe the update will bring long-term benefits to India’s rapidly growing UPI ecosystem.
Alok Singh, Executive VP of Ongo, highlighted that the new 35-character alphanumeric transaction ID format will make tracing transactions and identifying issues much easier.
“This move is essential to ensure that UPI transactions are secure, traceable, and standardized across the board,” Singh said.
Rahul Jain of NTT DATA echoed similar sentiments, emphasizing that technical standardization will improve transaction accuracy and reliability in the long run.
Key Takeaways
- Special characters in UPI transaction IDs will no longer be allowed from February 1, 2025.
- UPI apps must adopt the 35-character alphanumeric format to continue processing transactions.
- Users should update their UPI apps to avoid payment failures.
- The change aims to enhance security, efficiency, and standardization across the UPI network.
Preparing for the Change
As UPI remains India’s leading digital payment system, the NPCI’s decision to enforce standardized transaction IDswill contribute to a more seamless and secure experience for both consumers and businesses.
To ensure uninterrupted payments, users must verify their app’s compliance before February 1, 2025. While non-compliant apps may face initial disruptions, the overall benefits of consistency, security, and efficiency will outweigh the short-term inconveniences.
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