UPI Rules Update: NPCI Issues Directive To Banks To Remove Mobile Numbers That Are Disconnected

The National Payments Corporation of India (NPCI) has issued a directive instructing banks to routinely update their databases by removing mobile numbers that have been disconnected or surrendered. The compliance deadline for this mandate is March 31, 2025, ensuring that financial institutions maintain accurate records and minimize transaction errors.

Regular Updates to Prevent Errors

As per NPCI’s latest circular, banks must regularly update their records to reflect changes in mobile numbers, preventing complications arising from recycled numbers. This process must be carried out at least once a week to maintain accuracy in databases managed by banks, Payment Service Providers (PSPs), and Third-Party Application Providers (TPAPs).

NPCI stated in its circular dated March 3, 2025 that implementing this measure will reduce the risk of errors and misdirected transactions caused by outdated or reassigned mobile numbers.

Key Guidelines Issued by NPCI:

1. Mandatory Weekly Updates
   • Banks and PSPs must integrate data from the Mobile Number Revocation List (MNRL) or the Digital Intelligence Platform (DIP) to update their systems.
   • This measure ensures that outdated numbers do not lead to transaction failures or security concerns.
2. Explicit User Consent for UPI Number Seeding
   • UPI applications must seek clear and explicit user consent before seeding or porting a UPI number.
   • The default setting should be opt-out, requiring users to manually opt-in.
   • Consent must be obtained without misleading, forceful, or intrusive messaging, and should not be prompted before or during a financial transaction.
3. Preventing Miscommunication in UPI Services
   • Communication regarding UPI number seeding must be clear and transparent, avoiding misleading claims.
   • Users should be properly informed that failure to take action will not automatically result in loss of their UPI payment functionality.
4. Handling Response Delays in NPCI Mapper
   • If NPCI mapper response times are not up to standard, PSP apps may locally resolve mobile numbers, but must report such cases to NPCI on a monthly basis.

Enhancing UPI Interoperability

A UPI Steering Committee meeting was convened on July 16, 2024, along with several working group discussions on UPI number management. These discussions focused on improving interoperability and user experience in UPI-based transactions, ensuring seamless digital payments.

With digital transactions growing rapidly in India, NPCI’s new directive aims to strengthen security, enhance efficiency, and prevent fraud in mobile number-linked banking services. Banks and payment providers are now required to take proactive steps to comply with these guidelines before the March 2025 deadline.

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