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Published 08:03 IST, February 1st 2025

These UPI Transactions To Be Dismissed From February 1? NPCI Shares Update

To maintain standardization and security, any transaction with special characters in the ID will be rejected by the central system.

Reported by: Musharrat Shahin
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UPI Transactions To be Declined from 1 Feb 2025
UPI Transactions To be Declined from 1 Feb 2025 | Image: Freepik

The UPI for payments is the most convenient way of transactions. If you are frequent with this habit then you may have noticed that each transaction generates a unique transaction ID. These IDs are typically alphanumeric, but some have included special characters.

To ensure compliance with technical standards, the National Payments Corporation of India (NPCI) has issued a circular saying that, starting February 1, 2025, UPI transactions with special characters in their IDs will be declined.

UPI Payments: Standards

In a circular dated January 9, 2025, NPCI reminded UPI participants to generate only alphanumeric transaction IDs. While most players have complied, a few still use special characters. To maintain standardization and security, any transaction with special characters in the ID will be rejected by the central system.

UPI usage has skyrocketed in recent years, particularly after demonetization in 2016. In December 2024, UPI transactions hit a record 16.73 billion, an 8% increase from 15.48 billion in November. The total transaction value rose to ₹23.25 lakh crore, up from ₹21.55 lakh crore in November.


UPI Payment: Recent Scam

Recently, reports emerged about a new fraud scheme called the ‘Jumped Deposit Scam’, where fraudsters deposit small amounts into users' accounts and later trick them into authorizing larger payments. However, NPCI has denied any such fraud on the UPI platform, stating that users must explicitly authorize all transactions by entering their UPI PIN, ensuring security.

“Simply opening a UPI or bank application does not automatically approve a transaction. Users must explicitly authorise a payment request by entering their UPI PIN. Without this step, no transaction can be processed,” NPCI clarified on recent jumped deposit scam.

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Updated 08:03 IST, February 1st 2025