In a groundbreaking move, the National Payments Corporation of India (NPCI) has rolled out new regulations that require UPI applications to secure explicit user consent for both seeding and porting of UPI numbers. This revolutionary change aims at bolstering transparency and granting users complete control over their digital transactions.

According to Business Today, NPCI’s directive makes the default consent option “checked out,” ensuring that users must manually opt-in. This is a part of a much wider strategy aiming to enhance the security and user-friendliness of UPI transactions across the digital payment landscape.

Enhancing Systems with Weekly Updates

To further smooth the transaction process, UPI apps, alongside Payment Service Providers (PSPs), are tasked with a weekly update of their databases, integrating the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP). This measure ensures that outdated and recycled numbers do not disrupt services or lead to transaction errors.

Maintaining Transparency Amidst Mapper Delays

A critical component of the new rules involves addressing delays in NPCI’s mapper response times. During such instances, PSPs are permitted to locally resolve UPI numbers but are required to report these resolutions monthly, ensuring transparency prevails throughout the process.

Mandatory Monthly Reporting Begins in 2025

Starting April 1, 2025, both UPI apps and PSPs must submit comprehensive monthly reports to NPCI. These reports encompass an array of metrics such as the number of UPI number seedings, active mapper users, deregistered UPI numbers, and raw transaction data. This approach ensures accountability and smooth functioning.

Boosting Digital Payment Security and User Trust

NPCI’s directive reflects a commitment to safeguarding digital payment ecosystems by requiring stringent user consent and regular system updates. Compliance is not just expected but reinforced as a mandatory obligation for all stakeholders by March 31, 2025.

Staying Ahead in the Competitive Digital Payment Landscape

Amidst competition from rivals like Paytm and Google Pay, each advancing their own security protocols and user-centric features, this regulatory update by NPCI is set to strengthen India’s leadership in the digital payment sector. By aligning with these standards, UPI applications can not only ensure regulatory compliance but also fortify user trust.

NPCI’s holistic approach to redefine user consent protocols is reshaping India’s digital payment terrain, inviting stakeholders across the board to embrace these changes and seize the opportunity to lead in innovation and reliability.