Starting February 1, 2025, some users of the Unified Payments Interface (UPI) in India may encounter difficulties while making payments. This is due to a new regulation introduced by the National Payments Corporation of India (NPCI), which prohibits the use of special characters in UPI transaction IDs. From this date onwards, transaction IDs must consist solely of letters and numbers.
If your UPI application still generates transaction IDs with special characters such as @, #, !, or %, your payments might be declined. For instance, a valid transaction ID would appear as 'upi1234567890abc12345', whereas an invalid one could be 'upi@123456!7890#abcd'. If your app continues to use special characters, the payment will not be processed.
This change aims to enhance security and standardise UPI transactions. While NPCI has collaborated with payment applications to ensure compliance, some apps have not yet fully implemented these changes. Therefore, NPCI has decided to enforce this rule strictly from February 1.
To prevent transaction failures, users should first update their UPI app to the latest version, as updates typically include fixes for such compliance issues. If you are uncertain whether your app adheres to the new rule, contacting customer support for confirmation is advisable. Additionally, ensure you are using a trusted UPI app downloaded from official sources like the Google Play Store or Apple App Store. Some third-party apps might not comply with NPCI guidelines, potentially causing payment issues.
This update comes as UPI usage in India reaches unprecedented levels. According to NPCI data, UPI transactions reached a record 16.73 billion in December 2024, marking an 8% increase from November's 15.48 billion transactions. The total value of UPI payments in December was an impressive ₹23.25 lakh crore, up from ₹21.55 lakh crore in November. On average, Indians conducted 539.68 million UPI transactions daily in December, compared to 516.07 million in November.
As digital payments become integral to daily life, this update is essential for maintaining secure and efficient transactions. If you depend on UPI for payments, ensuring your app is up to date and compliant with the new rule will help you avoid disruptions.