With the rising popularity of digital payment systems, especially UPI, users often face challenges, the most common being accidental transfers to incorrect accounts. However, a permanent solution to this problem is on the horizon.
Technology: This news will be a significant relief for users of UPI platforms like Google Pay, PhonePe, Paytm, or BHIM. To enhance the security and transparency of digital payments, the National Payments Corporation of India (NPCI) has announced the implementation of a new and effective rule. This new rule will provide UPI users with accurate account holder information before transferring funds, eliminating the issue of sending money to the wrong person.
Growing Need for Security in Digital Payments
The use of digital payments, particularly UPI (Unified Payments Interface), is rapidly growing in India. Millions of UPI transactions occur daily, and this rapid increase in transactions sometimes leads to users inadvertently sending money to the wrong account due to haste. Retrieving these funds then becomes very difficult.
In response to this problem, the NPCI has developed a new rule that will be implemented nationwide from June 30, 2025. This rule will make UPI safer and more user-friendly.
What is the New NPCI Rule?
According to this new NPCI rule, whenever a user sends money to another person via UPI, the recipient's actual name (as per bank records) will be displayed on the transaction screen. Until now, the recipient's name displayed on UPI platforms during transactions was based on the name saved in the user's contact list or UPI ID.
This often led to payments being sent to the wrong person. However, under the new rule, users will be able to see the name of the bank account holder before completing the transaction.
Which Transactions Will the Rule Apply To?
The NPCI has clarified that this rule will apply to two types of UPI transactions:
- P2P (Peer-to-Peer): Payments between individuals
- P2PM (Peer-to-Peer Merchant): Payments between individuals and merchants
- This change will particularly benefit those who make multiple daily payments, such as customers paying shopkeepers or family members transferring money to each other.
How Will This Feature Work?
- When you enter a UPI ID or scan a QR code to make a payment,
- the NPCI will verify the registered name of the account holder from the banking system,
- this name will be displayed on your screen,
- you can verify if the name matches the intended recipient before sending the money,
- if there is a discrepancy in the name, you can stop the payment in time.
When Will the Rule Be Implemented?
The NPCI has decided to implement this new rule from June 30, 2025. All major UPI apps, such as GPay, PhonePe, Paytm, and BHIM, will need to implement this update in their systems as soon as possible.
Who Will Benefit the Most?
- Regular users: Who make frequent transactions and sometimes make mistakes.
- Senior citizens: Who may have less technological understanding, will now be able to make payments with greater confidence.
- Small merchants and shopkeepers: Who receive daily UPI payments from customers.
