NPCI's Directive for Safer UPI Transactions

In a groundbreaking move to bolster the safety and transparency of digital transactions, the National Payments Corporation of India (NPCI) has issued a new directive. All Unified Payments Interface (UPI) applications are now required to display only the 'ultimate beneficiary name' as recorded in the Core Banking System (CBS) during transactions.

Implementation Deadline and Benefits

The NPCI's circular, dated April 24, 2025, mandates that UPI apps must fully implement this change by June 30, 2025. This initiative aims to reduce the risks of misdirected payments and enhance user confidence by ensuring that only bank-verified names are displayed.

Impact on Users and Merchants

This new rule will significantly impact small merchants and individual users who frequently use nicknames or aliases for transactions. By standardizing the display of beneficiary names, the NPCI seeks to make the UPI payment ecosystem more secure and trustworthy.

Expert Opinions

Experts like Rahul Jain and Atul Gupta have praised the move, highlighting its potential to drastically reduce fraudulent transactions and accidental transfers. The change is seen as a crucial step towards eliminating anonymity in digital payments.