The National Payments Corporation of India (NPCI) has taken a significant step towards enhancing the privacy and security of digital payment users across the country. In a newly issued circular, the governing body for Unified Payments Interface (UPI) has directed all UPI applications, including major players like Google Pay, PhonePe, and Paytm, along with partner banks, to stop displaying the full mobile numbers of users. This move is aimed at safeguarding personal data and preventing potential misuse of contact information in the digital ecosystem.
Implementation of Digital Personal Data Protection Rules
This directive from NPCI comes as part of the broader implementation of the Digital Personal Data Protection (DPDP) rules. The primary objective is to ensure that sensitive user information isn't exposed during transactions. According to the circular, the deadline for all UPI service providers and banks to comply with these new privacy standards is September 4. By this date, all customer-facing interfaces must be updated to mask personal details effectively. The NPCI has emphasized that bank and UPI apps must prioritize user privacy by ensuring that information such as UPI IDs, mobile numbers, and account numbers are masked across all customer-facing platforms.
Specific Guidelines for QR Code Transactions
One of the most critical aspects of this new order pertains to transactions made via QR codes. The NPCI has specified that in any transaction involving a QR code, only the last 4 digits of the user's mobile number should be visible to the other party. Once the payment is completed, the mobile number should be completely hidden or masked. This measure is designed to prevent the recipient of the payment from obtaining the full contact details of the sender, thereby reducing the risk of unsolicited calls or messages.
Promoting Username Based UPI IDs
In addition to masking numbers, the NPCI has instructed UPI apps like Paytm, Google Pay, and PhonePe to provide a clear provision for creating UPI IDs that aren't based on mobile numbers. The goal is to encourage users to opt for unique usernames instead of their phone numbers. Currently, a large number of users rely on their mobile numbers as their UPI IDs, often because they're unaware of the option to create a username-based ID. By making the username option more prominent, NPCI hopes to further decouple personal contact information from payment identities.
Focus on Safety and Harassment Prevention
The decision to mask mobile numbers follows numerous complaints received by NPCI through various social media platforms. Many users, particularly women, expressed concerns regarding their privacy, identity, and safety. There have been instances where personal contact information obtained through digital transactions was used to harass individuals. By hiding the mobile number, NPCI aims to ensure that users can conduct transactions without the fear of their private data falling into the wrong hands or being used for harassment via calls and messages.
Future Features and Automatic Payments
The circular also touches upon the continuous evolution of the UPI platform. It was recently reported that NPCI is working on a new feature that will allow users to view all their automatic payments in a single location. This upcoming feature is expected to benefit both users and banks by providing a centralized dashboard within a single UPI app to manage all recurring payments across different platforms. This initiative, combined with the new privacy rules, reflects NPCI's commitment to making digital payments more transparent, secure, and user-friendly.