NPCI mandates user consent for UPI number seeding, porting; check details

The National Payments Corporation of India (NPCI) has issued an updated directive requiring UPI applications to obtain explicit user consent for seeding or porting UPI numbers. This move aims to enhance transparency and user control in digital transactions. The guideline mandates that the default option for user consent should be "checked out," necessitating manual opt-in by users, ensuring that consent is not assumed without active user participation. This directive is part of NPCI's broader strategy to improve security and interoperability in UPI transactions, with compliance required by March 31, 2025. 

The initiative also stipulates that UPI apps and payment service providers (PSPs) must update their databases weekly using the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP). This requirement ensures that recycled or churned mobile numbers are correctly reflected in systems, thereby reducing transaction errors. Moreover, the guideline prohibits the collection of user consent before or during transactions to prevent any undue influence or pressure, and it ensures that communications related to seeding or porting do not mislead users into believing that their payment reception is contingent upon consent. 

A significant aspect of the updated guidelines is the handling of delays in NPCI's mapper response times. In such instances, the guidelines allow PSPs to resolve UPI numbers locally. However, they must report these occurrences to NPCI on a monthly basis, maintaining accountability and transparency in the handling of such cases. From April 1, 2025, both PSPs and UPI apps will be required to submit detailed monthly reports to NPCI. These reports will cover key metrics, including the total number of UPI number seedings, active users on the mapper, and deregistered UPI numbers, alongside raw transaction data.

This directive underscores NPCI's commitment to enhancing digital payment security and efficiency, ensuring a seamless transaction experience for UPI users. By enforcing stricter guidelines on user consent and system updates, NPCI aims to fortify user trust and mitigate errors associated with outdated user information. Stakeholders are urged to implement these changes promptly to avoid compliance issues, as alignment with these regulations is mandatory. This systematic approach reflects NPCI's intention to bolster digital payment frameworks amidst a growing user base.

In the competitive landscape, these changes align with ongoing efforts by major payment entities to ensure the highest standards of operational integrity and user satisfaction. As the digital payment ecosystem continues to expand, with rivals like Paytm and Google Pay also advancing their security measures and user convenience features, NPCI's reinforced guidelines are set to play a crucial role in maintaining India's leadership in the digital payment sector. By adhering to these updated standards, UPI apps can better navigate the evolving regulatory environment while enhancing user experience and trust.