UPI New Rules / Now payment will not go to someone else even by mistake!

NPCI will launch a new feature by June 30, which will make UPI payments more secure than before. Now before sending money, the verified name of the receiver will appear on the screen, which will be found from the CBS record. This will reduce the possibility of fraud and the money will reach the right person.

UPI New Rules: Crores of people across the country make digital payments daily through UPI (UPI - Unified Payments Interface). Now a very important and security enhancing feature is being brought for these users. The National Payments Corporation of India (NPCI) has announced that a new update will be implemented by June 30, 2025, which will make UPI payments more secure and transparent.

What is the new feature?

Under the new system, when a person sends money to someone through UPI, the name of the person to whom the money is being sent will appear on the mobile screen before the transaction. The special thing is that this name will be taken from the records of Core Banking Solution (CBS), not from the name or QR code set by the user. This will make it clear to the user whether he is sending the money to the right person or not.

What happens now?

Currently many UPI apps give users and merchants the option to edit their names. Apart from this, some apps take the name from the QR code or show the name according to the user's contact list. In such a situation, many times the name shown on the app does not match the actual bank account holder, which increases the possibility of fraud.

What will the new rule change?

This rule of NPCI will apply to both Person-to-Person (P2P) and Person-to-Person Merchant (P2PM) transactions.
P2P transactions are those in which two common people transfer money among themselves, such as sending money to a friend.
P2PM transactions are those that are done to small shopkeepers or service providers, such as making payments at general stores.

How will the way the name is displayed change?

This new feature will not change the process of UPI payment, but now the name that will appear on the screen before payment will be the "verified name" - that is, the real name present in the bank records. This will not only reduce the risk of sending money to the wrong account, but will also give the user the confidence that he is transferring the amount to the right account.

Why is this change necessary?

Along with the rapid increase in popularity of digital payments in India, cases of fraud have also been coming to the fore. Many times users have been misled with fake QR codes or names. This step of NPCI will not only help in preventing cyber fraud, but will also strengthen the trust of the general public in the UPI system.