Starting February 1, 2025, the National Payments Corporation of India (NPCI) will require that all Unified Payments Interface (UPI) transaction IDs contain only letters and numbers. This rule is meant to make transactions more secure and consistent across India’s digital payment system. If UPI apps do not follow this rule, their transactions will be declined.

Why Special Characters in UPI IDs Are a Risk

Using special characters in UPI IDs can create security problems. Jaikumar, Co-founder and CTO of TechFini, explains the risks:

• Hacking Attempts: Hackers can use special characters to access sensitive data illegally.
• Fake Transactions: Special characters can be used to trick users or payment systems.
• Data Errors: Transactions with special characters may cause system errors or failures.

By allowing only letters and numbers, NPCI aims to reduce these risks, prevent fraud, and make transactions more secure and reliable.

Impact on Users and Payment Apps

UPI apps must switch to using only letters and numbers for transaction IDs before February 1. If they do not, their transactions will be declined. This change is expected to:

• Reduce Errors: Making all transaction IDs the same format will help avoid processing mistakes.
• Improve Compatibility: A standard format will help banks and payment apps work together better.
• Increase Security: Removing special characters will lower the chances of fraud and hacking.

Users should check that their UPI apps follow the new rule to avoid payment issues.

Conclusion

NPCI’s new rule to allow only letters and numbers in UPI transaction IDs is a major step toward better security and consistency in digital payments. Users and payment providers must follow this rule to keep transactions smooth and safe. This change will help create a more secure and standardized digital payment system in India.